As the contract hire and leasing industry has grown in the UK for cars, the same can be said for the world of vans. Van leasing is now just as popular, as the modern UK automotive commercial market begins to take shape and gather pace…
Traditionally, van users would buy their vans as an outright cash purchase or utilise a purchase style product known as hire purchase.
1) Contract hire; or
2) Finance Lease
Contract hire is an ideal product for those commercial vehicle users who want a fixed cost for using a vehicle over 2/3/4 years and can be confident of annual mileage and the condition of the vehicle. As the price you pay for contract hire is mileage based, if you do exceed the agreed mileage you will have to pay excess mileage charges.
Additionally, at the end of the contract the vehicle will be inspected at the point of collection and any damage which exceeds the fair wear and tear guide will be chargeable. Dents/ scratches to the body or damage to the alloys will result in you being charged.
With contract hire you can include a funder-maintained package which incorporates the cost of all servicing, tyres and breakdown recovery for the duration of the agreement. As a result, this allows you to fix costs, reduce contract and disposal hassle, ensures road fund licence is included for the duration and offers a great tax benefit to your company. However, as you cannot purchase the vehicle, early termination fees apply and an excess mileage/damage charges apply, contract hire may not be suitable for every business.
Finance lease is very popular with our van customers who do want to purchase their vehicles.
Unlike lease purchase, Vat is charged on the initial rental/monthly rentals, rather than as upfront cost, so this a great cash-flow efficient way to fund a vehicle. By paying an initial rental, monthly rentals and the final rental (balloon) you can fund the vehicle over 2, 3,4 or 5 years. If you sell the vehicle at the end of the contract and this exceeds the final rental, this equity is yours to keep. For those using vans for high mileage jobs or heavy use, this is a great way to take the risk yourself, as the van is not being returned to the finance company at the end of the contract. In some cases, finance companies will provide funder-maintained arrangement, so you can also fix the cost of all servicing, tyres and breakdown recovery for the duration of the contract.
Ford Transit Custom 270 SWB Diesel FWD 2.0 TDCi 130ps Low Roof Limited Van (the UK’s number one selling commercial vehicle), this is based on the following confuration:
Do consider the risks however – if your van is not worth the final rental, this is your risk and you cannot simply return the vehicle.
· Metallic – Magnetic
· Cloth – Pewter/Charcoal black
· 16″ alloy wheels
· Ply Lining
On the technical side – the Ford Custom Transit Van seen here has a C02 level of just 167g/km and a P11d value of £31,550 for use in calculating BiK – the 1996cc (2.0 litre) Euro 6 turbo diesel engine delivers 130 BHP and 385 NM of torque and can achieve a terrific 48.7 MPG (extra urban) on long runs due to the 6 speed manual gearbox.
She has a load height of 1406cm and a load length of 2555cm with the load space between the wheel arches coming in at 1390cm and rear door width of 1400cm and rear door height of 1347cm. The van also comes equipped with a space saver spare wheel and 16 inch alloy wheels all round as standard. The fuel tank on this van has an 80 litre capacity and gross vehicle weight of 2740 kg.
Service intervals on the Ford Transit Custom low roof Van are very much “long life” with servicing mileage intervals set at 36,000 miles or every 24 months (whichever comes sooner) there is also a standard Ford manufacturer warranty covering the first 100,000 miles of the vans life.
Currently on special offer here at CarLease UK the Ford Transit Custom Low Roof Van represent terrific value for money when shopping for a van of this size and in this segment, but if the Ford badge isn’t the one for you, consider the Mercedes Sprinter, Citroen Dispatch and Peugeot Expert or slightly smaller options include the Nissan Nv200 which is also available in an electric version; Nissan Nv200 Electric…
Let us know your thoughts on which van you would use for work!
Click Here to find the best personal and business lease deals on the all new Ford Transit Custom Van available from today on CarLease UK