Electric Van Finance

Contract Hire

Contract Hire is a simple and effective way to fund any number of vans.  Contracts range from 24 to 60 months and are tailored to your requirements.

With small initial rentals and fixed monthly costs, Contract Hire makes budgeting more simple.  Also, you have no risk of residual values at the end as you hand the van back.  Additionally, maintenance and recovery can be included in the monthly rental.  In turn, this eliminates most of the stress and financial risks of van ownership.

Disadvantages

• The company will be tied into a fixed contract
• No ability to profit from residual values
• There is no option for the company to purchase the vehicle
• It will be necessary to forecast the expected term and mileage for the car at the outset of the contract
• If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
• You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’
• You must have fully comprehensive vehicle insurance (or third party and self-insure)

Finance lease

Finance Lease is a flexible lease option with no mileage limits or damage recharges.  For a registered company that wants to handle your own vehicle administration, Finance Lease could be perfect for you.  Another advantage is the asset is shown on your company balance sheet.

Also, Finance Lease is a VAT-beneficial option. You can pay the entire van cost over the agreed lease period, plus interest charges.  Alternatively, you can pay lower monthly rentals during the lease period with the additional of a final balloon payment.  The balloon payment is based on your expected resale value of the van.

Disadvantages

• You will never own the vehicle as you must sell it to a third party at the end of the agreement
• Operating risk associated with running the vehicle at the end of the contract
• Interest rates can vary on some contracts
• You must have fully comprehensive vehicle insurance
• The company will be tied into a fixed contract
• Exposure to residual value risk for the company

Hire Purchase

Hire Purchase is a great finance option for ownership, available for both private individuals and businesses.  It’s really easy, when all payments have been made you will take ownership of the vehicle.

Usually the full cost of the vehicle will be financed. However, part of the cost can be deferred to a balloon payment.  Bear in mind, this option is only available to business users.  In this case, you will have lower monthly payments with a final payment. Then, the balloon payment is agreed based on the expected resale value of the van.

The benefits of Hire Purchase:

• Fixed monthly cost
• Ownership at the end of the agreement
• Flexible contract
• Balloon Payment
• Low initial outlay
• Business capital not tied up in a depreciating asset
• Finance not subject to VAT
• Interest reclaimable against tax
• Writing down allowance
• Road fund licence included for the first year of the contract

Outright Purchase

Not looking to finance?  No problem, you can Outright Purchase all our vans.

Outright Purchase is the easiest way to buy your next van.  You pay the cash price in full, which saves you paying additional interest.  However, from a taxation point of view, you can only claim back the write down allowances.

The advantages are:

• Ideal for those who want total ownership of their vehicles
• No Contracts or agreements
• The vehicle is yours to do with as you please from day 0