Published on Tuesday 09 January 2018 in Van News
Your questions about van finance answered...
Do you have any burning questions about van finance or leasing a brand-new vehicle of any type? You're not alone, and that's why we've rounded up the top 5 customer questions of the week about van finance to help you out. Vanarama's Tom Roberts reports.
Working out which van you want to drive for your business is tricky enough (sometimes, because you're spoilt for choice these days). Then you have to decide how you're going to finance it – wouldn't it be nice if you could ask as many questions as you liked?
Well, you're not alone if you answered "yes". Our customers ask us questions every day, so I decided to tally up the top 5 most popular from this week – and the answers we gave them over the phone or by email. We hope you find them illuminating, and that they make things a little easier.
1. Is road tax covered in the lease?
The answer to this question depends on which type of van finance you choose. If you choose a contract hire or contract purchase lease agreement, the road tax is included for the duration of the contract.
Finance lease will include the first year's road tax. However, the finance company will then invoice you for the next year.
2. Do you offer pickup trucks for personal use, or do you have to have your own business?
We can offer two different leasing options on pickup trucks for personal customers. Below, are some brief descriptions of both agreements that would suit this type of situation:
- Personal Contract Hire (PCH) is a perfect product for an individual who wants fixed-cost motoring and is confident about the mileage and condition of the vehicle over a set period of time. It is an easy and cost-effective way to fund vehicles and it enables you to control one of your biggest expenses.
PCH is available with or without a maintenance package, which offers fixed cost motoring with no hidden extras. Personal Contract Hire is similar to Business Contract Hire. However, as an individual, you will not be able to recover any VAT or take advantage of any tax allowances.
- Personal Contract Purchase (PCP) is fast becoming one of the most popular ways of financing the new vehicle of your choice, simply due to its flexibility. You choose the car, the deposit, how long you want the contract to run for and the mileage you intend to do.
In return, you get fixed-cost motoring for the whole term, and at the end you have a choice to either buy the car outright for an agreed lump sum (the minimum guaranteed future value), part exchange the car and use the equity you have built up as the deposit on another new car.
Or, you can simply hand the vehicle back to the lender and walk away without owing anybody anything (subject to the mileage and condition of the vehicle at this time).
3. Can I transfer my lease to someone else?
Unfortunately, finance options do not give you the ability to transfer a lease from one person to another.
4. If I lease a van for my business, would it be ok for someone who works for me to drive it?
Providing the individual is covered on your insurance policy, is working for you or your business, and it is being used for business purposes, then that person is able to drive that vehicle.
5. I'm only 6 months into my current Citroen Berlingo lease. Due to unexpected circumstances, I will soon need a larger vehicle. Are there any options to change to leasing something with more seats?
There certainly are options to come out of your agreement early and the option will be subject to the type of contract you have. All you need to do is get in touch with your lease provider and ask the question.
We hope this article helped answer a few burning questions about van finance in all shapes and sizes. If you have any further questions, please contact us on 01442 838195, and check out our deals here.