Frequently Asked Questions
We have split our Frequently Asked Questions section into three categories. These are also downloadable as PDF's so you can print off, to view PDF's you'll need Adobe Acrobat installed on your PC (about 98% of pc's have Acrobat installed).
- Business Finance Leasing (download PDF)
- Common Financial Questions (download PDF)
- General Van FAQs. (download PDF)
Business Finance Leasing
Finance leasing is a long established vehicle financing method for business users. It can offer significant tax advantages and can benefit cash flow. Business Finance Leasing is not available to Private Individuals and is the preferred option due to significant tax advantages for Sole Traders, Self Employed, Partnerships & Limited Companies.
Once the leasing period of usually between one to five years is agreed, the business pays a deposit that can be as little as three months payments or as much as preferred. The choice is then made to spread the remaining balance over the remainder of the period or, more often to have a ‘balloon rental’ at the end of the term. This has the effect of keeping the monthly payments lower.
The amount of monthly payment is determined according to:
- The value of the new vehicle.
- The amount of initial deposit (variable to suit the business requirements).
- The length of the repayment period (1 to 5 years).
- The amount of the final (balloon) payment at the end of the period.
- The “balloon” payment can be set anywhere between 0% & 80% of the resale value of the vehicle based on the anticipated annual mileage. (Having a “balloon” final payment has the effect of reducing the monthly rentals).
Benefits of finance lease as agreed by accountants:
- 100% tax deductible. Reduce your costs and get back from the government between 18% & 40% of your total payments (including your deposit).
- Pay the VAT with your payments, not all up front at the start of the agreement.
- If VAT registered, claim it all back, and if not registered offset it against your tax.
- Fixed payments for the whole agreement
Q. Would I be better off with an H.P. or even a cash Purchase?
No. We recommend Finance Lease because:
- All payments, including deposit are tax deductible, which is always more tax efficient than claiming capital allowances available when cash or H.P. purchasing.
- You benefit from massive fleet discounts only available on Finance Lease.
- You gain from improved cash flow with VAT being spread over the whole of the agreement, rather than a large single payment paid with the deposit.
- No mileage or condition penalties
Q. Do I have any value in the vehicles?
Yes, just like a purchase agreement you build up equity in the vehicle through the period of the agreement, so that when you change your vehicle you have money to start off your next lease.
Q. Can I pay a higher or lower deposit?
Yes. It is possible to increase or reduce deposits within certain minimum & maximums, this will decrease or increase your payments accordingly.
Q. Can I lease over a different period?
Yes. Leases run from 18 months up to 5 years depending on your requirements.
Q. Do I have to have a balloon final payment?
No. You can request a full payout lease.
Q. Can I have extras on my vehicle?
Yes. We specialise in pick-up truck accessories, and can supply and fit at very competitive prices, the cost can be added to the cost of the lease or paid for in the deposit.
Q. Why are the lease payments so low?
In most cases you benefit from two discounts. One is the maximum retail discount and the second is a fleet discount, volume related and linked to the purchasing power of ourselves and our funding companies.
Q. What are my options at the end of the lease?
You have several options [the first listed here is the most popular]:
- You can swap the vehicle in for another one. In this instance the vehicle clears its own balloon and you take the value left over to start your next lease.
- Sell the vehicle on behalf of the finance company and keep any profit made after clearing the finance company balance/interest.
- Spread the balloon payment over a further period.
Q. Can I sign write the vehicle?
Yes. We recommend the sticker sort so that it is easy to return the vehicle to its original paintwork on disposal.
Q. Can I settle early?
Yes. But we do not recommend very early settlement. This is because you have not had time to build up any equity.
Common Financial Questions
Q. Do I need to have been trading for a certain period of time or have business accounts to lease with you?
No. We deal with new start businesses all the time. We don’t ask for a business plan and you don’t need to be VAT registered. We have the simplest account application process in the UK. Many of our customers have started their businesses with a leased van from us and now have several vehicles on their fleet.
What information do you require for me to open an account with you?
All we need to know is where you want us to deliver the vehicle as well as your home address and date of birth. We also need to know your bank account details because your monthly payment is made by direct debit. Our simple application process means we can give you an answer quickly and have you in your new van and on the road with a minimum amount of fuss.
How long does the process take?
Opening an account through us can take a matter of hours, and we will guide you through the process. You simply need to complete an account application over the phone and we do the rest.
How much deposit do you require?
The deposit we ask you to pay when you start your leasing contract through us can be tailored to your exact requirements. Quite simply, the more you pay up front, the less the monthly cost will be. Often people only want to pay a minimal deposit which can be as little as a few hundred pounds. This means you can be driving a brand new van with a minimum cash outlay. This is a huge benefit of leasing over buying.
Common Van Questions
Your new van is important to you – you need to know that the people you are dealing with can help you make the right decision. You can be 100% confident that when you call us, you will get the right advice for YOU and YOUR business!
Q. Will I get a brand new vehicle?
You will get the benefit of a brand new vehicle along with a full manufacturers warranty - to give you complete piece of mind you can choose any make or model of vehicle to suit your needs.
Q. When can I expect to take delivery?
We aim to deliver your vehicle straight to your door with 7 – 10 working days. If you choose a model that isn’t readily available and can’t wait, we will endeavour to recommend a suitable alternative
Q. What are the benefits of leasing over buying from a dealer?
A motor dealer will only offer you products from a range that they sell. Try asking a Vauxhall dealer their opinion of a VW or Mercedes van! We are truly independent and out role is very different. We want to make sure we deliver a vehicle to you that is an exact match for your requirements both now and in the future. On top of that, we buy the vehicles at the keenest possible price and will always be less expensive than buying from a dealer.
Q. Can I put extras on the vehicle?
We can arrange to supply and fit a range of extra items to you new van. If you have specialist items that you want to fit yourself, feel free to fit these at your own cost.
Q. Can I have the vehicle sign written?
We actively encourage people to sign write their own van. What could be a better advert than to have your fresh new van complete with your business logos on it? A new van is a great rolling advert and will give your customers confident in you. All we ask is that if you choose to return the van to us, please ensure that you remove all the lettering and decals beforehand.
Q. Who is responsible for insuring the vehicle?
The monthly van lease costs we advertise do not include insurance. We ask that you insure the vehicle on a fully comprehensive basis. We recommend that you call David Willis of A-Plan as he has managed to provide massive savings for over 80% of our customers.
Q. I am not bothered what sort of vehicle it is, but I know the budget I need to stick to. Can you help?
A lot of people come to us with no idea of what van they want, but know roughly how much they want to spend. We can easily identify vans within different pricing categories and are 100% confident that we can find the right van for YOU and YOUR business.
