Commercial Van Leasing

Your Guide to Commercial Van Leasing

If you thought a new van was out of your reach then think again. Select have a range of solutions to help put you behind the wheel of your dream machine!

Commercial van leasing is the cost-effective and simple way to finance a new vehicle. Read on to find out more.

Why Lease?

We all know that buying a van is a commitment right? And not just in terms of outlay, there’s also the cost of maintenance and servicing to consider. When you buy a new van outright you lose a small fortune by just driving off the forecourt in it. Then there’s the hassle of servicing and taking it back to the garage when things go wrong.

Wish there was a way to take the hassle and cost out of owning a van? Well there is and it’s called van leasing. We’ll talk you through all of the options that are available in your route to care-free motoring.

Contract Hire

The most popular form of van leasing, Contract Hire involves the lease of a van over a fixed period of time. Over this period, the lessee (the person leasing) pays a monthly fee which is calculated on the amount of money the van will lose in value over this time.

At the end of the contract the vehicle is simply returned. It’s as simple as that!

The beauty of contract hire is not just in its simplicity, it is also incredibly cost-effective. You can claim back as much as 100% of the VAT (17.5%) on your monthly payments, if the vehicle is used solely for business purposes. If your van is used for domestic traveling as well, you can claim back 50% of the VAT, still a worthwhile amount.

Contract hire vehicles won’t show up on your company's balance sheet either, as they don’t count as assets.

Personal Contract Purchase

PCP is similar to lease hire in that you agree a contract length and pay a monthly fee calculated on the depreciation of the vehicle.

With PCP however, there is greater flexibility as you have several options at the end of the van leasing contract.

The value of the van is guaranteed so if you wish you can purchase it out-right when the contract is up. If you’d prefer, you can return the vehicle with no extra charge.

PCP is ideal for people who want the best of both worlds, the freedom of van leasing but with the option of ownership.

Personal Contract Plan
Simply choose your van and the deposit you want to pay, how many years you want the contract to run and your expected annual mileage.
From this information we calculate a monthly payment and the future value of the van is then guaranteed. This protects you from any future depreciation of the van.
At the end of this van leasing contract you can either, hand the keys over and walk away, pay the guaranteed future value of the van and take ownership or part exchange your van and choose a new one
Hire purchase

Unlike a lease or a personal contract purchase agreement, with higher purchase van leasing, the residual value of the vehicle is not taken into account.

Your monthly payments are determined by the retail price of the vehicle, the size of the deposit and the length of the contract.

You pay an initial deposit and then pay off the balance in monthly installments over an agreed period of time. At the end of this van leasing contract, the vehicle is yours.
Lease Purchase

Van lease purchase is similar to a Hire Purchase agreement in that it offers low monthly repayments as a percentage of the vehicle's cost. The remaining percentage is deferred to the end of the contract by means of a "balloon" payment.

The balloon payment is based on your requirements as stated at the beginning of the agreement. This uses your anticipated mileage as a guide to the vehicles value at the end of the contract.

Monthly repayments are made until the end of the contract when you will be given the option to pay the balloon payment and keep the vehicle or part-exchange the vehicle for a new one.

Finance Lease

This VAT-free method of van leasing is usually preferred by VAT-registered businesses and companies.
The monthly rental is based on the initial cost of the vehicle, the period of the van leasing contract and the estimated future value of the vehicle at the end of the finance lease period.
With finance lease, you have full use of the vehicle during the agreed contract, however, you never take full ownership of the vehicle. At the end of the contract a payment of the residual value is payable. 

So there it is, all you need to worry about now is the traffic on your way to work!

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