What Happens at the End of My Lease?

As your van leasing comes to an end, there are a number of things that could happen depending on what rental contract you have taken. Depending on the contract you may just return your van, own it at the end of letting or have an option to purchase it or pay back the depreciated value. Cheap van leasing is a great way for a business to own a van without worrying about the high upfront costs. Making sure that you know what to expect at the end of leasing a van is crucial to choosing the right terms of contract for you and your new commercial vehicle.

Here at LeaseCar, we offer a whole range of affordable and flexible van lease deals to suit your every need and financial situation. With all our vans and trucks coming directly from the manufacturer, you know you can trust us to provide you with the perfect vehicle for the job at a price you can afford.

What are the lease options?

LeaseCar offer a wide variety of services to suit your every need! Here are just some of our affordable funding arrangements:

• Personal Contract Hire
• Business Contract Hire
• Business Contract Purchase
• Finance Lease
• Lease Purchasing

With such a competitive range of leases available, it' s important to know what happens at the end of each of these options.

Contract Hire

Be it for personal or business use, contract hire is great for those wishing to use a van, but who don't wan the hassle and high fees that come with ownership. You can rent anything from a single van for personal use, to a fleet for a business; all you pay for is the usage! These are some of our most popular arrangements, also known as 'operating' contracts. You pay a low initial fee on a fixed rental agreement, and this also includes a fixed yearly mileage calculated before the contract begins.

What happens at the end of the lease?

At the end of contract hire you just return the vehicle to us - it's that simple! With the low monthly payments and great selection of vans to hire it' s no surprise this is the UK' s favoured type of leasing. There are some things to be aware of when returning your leased vehicle though:

• The vehicle must be well looked after and returned in a suitable condition
• Fully comprehensive insurance is required to take out a contract hire
• If you wish to cancel the lease before the arranged end date it can be costly
• You never own the vehicle, nor do you have the option to purchase it at the end

For many people, the idea of using but not ' owning' a vehicle can be an issue, but other options are available to those that wish for the option to purchase at the end of a contract.

Contract purchase

As with Contract hire, contract purchase is a leasing option available to both businesses seeking to use a series of vans, and trucks and also for personal use. This is a perfect option for those wishing to purchase a vehicle, but over the course of a series of manageable monthly payments. Upon making a low initial deposit, contract purchase can allow you to buy and own a vehicle that may have been previously unaffordable due to immediate high costs.

What happens at the end of the lease?

At the end of a contract purchase, there are four options available at LeaseCar. All of these revolve around the possible payment of a balloon amount, or a GFV (Generated Future Value). This price goes alongside the initial deposits and monthly payments and allows you to make decisions of whether you wish to own the vehicle or return it pending the condition of the vehicle in relation to the prearranged final payment. Here are the options open:

• Return the vehicle to the funder, if it is in a suitable condition for the vehicle age
• Pay the GFV balloon payment and keep the leased vehicle.
• If you feel the GFV is too low you can sell it privately for more and keep the profit
• Trade the van in part-exchange for a newer model at a dealership

These options are all based upon a final balloon payment, and are a great way for someone wishing to own a van that is not in a position to immediately afford one.

Finance lease

Here at LeaseCar, we believe strongly that every business should have access to commercial vans and trucks, and so with our finance plans can make arrangements to suit any budget. Leasing on finance is similar to contract purchase, but whereas at the end of a contract purchase the van becomes property of the contract holder, with a financial lease the van remains property of LeaseCar. Instead of being the owner of the vehicle, consider yourself as a stakeholder in the van. There is still a balloon payment for the end of the contract, but this is funded through resale of the leased property. When the contract comes to an end, it is sold buy LeaseCar to a third party company.

What happens at the end of the lease?
• The vehicle could be sold for a profit, in which case you may see a portion of the profit
• The money from the sale will be enough to cover the final balloon payment and the contract will end
• The money from the vehicle sale will cover a portion of the balloon payment, with the rest to be paid over an agreed and suitable period of time until the cost is covered

This payment is to the depreciating value of a leased vehicle over time. When choosing a financial lease, be it a finance lease, lease purchase or hire purchase (the latter two ending in you gaining ownership of the vehicle but under similar conditions) it's important to know what interest rate you'll be getting and what payments you'll be making over the period of time. Whilst it is an affordable route to van hire, it can also lead into debt if the van depreciates beyond the GFV.

Whatever your financial position, the option for individuals and businesses to have access to a cheap van lease is always available. Van leasing companies such as LeaseCar offer a wide range of options to make sure that every business can use a van or truck with an affordable and manageable payment system.