At LeaseCar, we are experienced in bringing our customers the best possible lease and rental deals on a variety of vans. There are many reasons why people choose to lease vans with us - but we take pride in our range of manufacturers, our customer service, and our fantastic range of van leasing deals.
We believe that businesses, no matter the size, should have access to the highest performing vans at the best possible prices. That’s why we offer several different financial plans for van rental.
However, one of our most popular plans is finance lease. There are many advantages for businesses who choose to buy their vehicle through finance lease. At LeaseCar, we have lots of experience in delivering and creating tailor-made rental deals for our customers. So, if you would like to learn more, here is a summary of our lease purchase agreement.How does finance lease work?
Like other financial plans offered by LeaseCar, finance lease is a long-term contract which allows our customers to pay for their van in small, regular installments.
Finance leasing is similar to purchase leasing, but it differs on one crucial detail. Both finance leasing and purchase leasing allow the customer to pay for the vehicle on a monthly basis. However, when your contract ends, the vehicle does not belong to the customer. Instead, the van is then sold on by our company and you receive a proportion of the profits.
Due to this system, the van remains the property of LeaseCar throughout the duration of the contract. In this sense, you are renting the vehicle but you are a stakeholder in the van itself.
Given that the vehicle e.g. asset is owned by LeaseCar, you won’t need to pay for any capital allowances - meaning that your monthly repayments will be cheaper overall.
The process for finance leasing a van works in the following manner. First of all, you choose the van which suits you and your businesses’ needs. Once you’ve done this, then one of our consultants will draw up a financial contract and you’ll both come to a mutual agreement about your payment options. The monthly repayments will be calculated according to the price of the car and your financial situation.
Depending on the agreement, you may be subject to mileage restrictions throughout the contractual duration. This is because the van, as an asset, will decrease in value according to its mileage and annual depreciation.
Once the contract ends, the van will be sold on to a third party. Providing that the van is bought for a higher price than the initial deposit, you will receive a proportion of the profits in return. In addition to this, if the price is lower than the balloon payment, you may be subject to making further payments to compensate for this loss.What are the advantages of finance leasing?
There are many advantages for businesses who finance lease their vans. Some of the most popular reasons include:
As with any financial agreement, there are potential downsides to finance leasing. The most obvious point is that you won’t own the vehicle at the end of your contact. In this sense, finance leasing is very similar to renting a property.
Due to renting the van, businesses might be subject to mileage restrictions throughout the duration of the contact. As everyone knows, vehicles will depreciate in value as a result of their usage. For this reason, it’s in the interest of LeaseCar to ensure that the depreciation costs are minimised at all costs.
Once your contract ends, the van will then be sold to a third party. If the price is lower than your initial deposit payment, then you may be subject to a fee. This is another potential downside to finance leasing.LeaseCar: Our service
At LeaseCar, we make it our responsibility to deliver a financial plan which reflects the needs of our customers. That’s why we offer several different kinds of payment options. While all of these plans are different, they all have one thing in common: we aim to make van driving affordable, comprehensive, and always enjoyable.
We understand how important it is to have your van as quickly as possible. To achieve this, we allow our customers to drive away with a brand new van on the very day of purchase. Our payment plans, furthermore, mean that you may be able to rent a van previously outwith your budget. It doesn’t matter how big or small your business is; it’s absolutely vital to have a van which goes above and beyond other vehicles.
If you would like to learn more, or have any questions about finance leasing, please contact us today.