Vehicle leasing FAQs
If you’re new to leasing or want to understand each stage in detail, our simple van leasing process guide walks you through everything step by step.
Leasing a vehicle is one of the most cost-effective ways to drive a brand-new car or van without the long-term commitment or upfront expense of purchasing outright. Whether you're upgrading for personal use or expanding your business fleet, leasing offers flexibility, predictable monthly costs, and access to the latest models equipped with modern technology and safety features.
However, we understand that the leasing process can feel confusing—especially if it’s your first time. From choosing the right lease type to understanding mileage limits, maintenance options, and what happens at the end of your contract, there’s a lot to consider.
To help make things clearer, we’ve created this comprehensive FAQ guide covering the most common questions our customers ask. Here, you’ll find straightforward explanations of how leasing works, what’s included, what to expect throughout your agreement, and how to get the most value from your lease.
If you can’t find the information you need, our team is always happy to help. You can also visit our comprehensive UK van leasing explained guide for a clear breakdown of how van leasing works and the benefits for your business.
Call our expert team on 01424 863 456 for friendly, no-obligation advice.
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Most Popular Questions
How Much Deposit Do I Need?
ExpandMost van lease agreements require an initial rental rather than a traditional deposit.
This is usually equivalent to:
- 3, 6, 9 or 12 monthly payments upfront
The higher the initial rental, the lower your monthly payments are likely to be.
Some finance providers may also offer:
- Low upfront cost deals
- No deposit leasing options
- Tailored payment profiles for businesses
Your exact initial payment will depend on:
- The vehicle chosen
- Contract length
- Annual mileage
- Your credit profile
We can help you compare different options to find a lease agreement that suits your budget.
We can assist you in finding the most suitable and affordable commercial vehicle for your needs. Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Can I Lease a Van with Bad Credit?
ExpandLeasing options may still be available if you have poor or limited credit history, although approval is not guaranteed.
Finance providers will assess:
- Your credit history
- Business trading history
- Affordability
- Existing financial commitments
Possible options for applicants with lower credit scores may include:
- Higher initial rentals
- Providing a guarantor
- Choosing a lower-value vehicle
- Supplying additional financial information
We work with a range of finance providers and can discuss the available options based on your circumstances.
We can assist you in finding the most suitable and affordable commercial vehicle for your needs. Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
What Happens at the End of a Van Lease?
ExpandAt the end of your lease agreement you will usually:
- Arrange for the vehicle to be inspected and collected
- Return the vehicle to the finance company
- Pay any applicable excess mileage or damage charges
The vehicle will be checked against fair wear and tear guidelines.
Depending on your agreement, you may also have the option to:
- Extend the lease
- Replace the vehicle with a new lease
- Purchase the vehicle after a final payment
We will normally contact you before your agreement ends to discuss your available options.
We can assist you in finding the most suitable and affordable commercial vehicle for your needs. Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Can I End My Lease Early?
ExpandYes, most lease agreements can be ended early, although early termination charges will usually apply.
The amount payable depends on:
- The finance provider
- The remaining contract balance
- The terms of your agreement
In most cases:
- A percentage of the remaining rentals will need to be paid
- The vehicle must be returned in acceptable condition
- Excess mileage charges may still apply
Some finance companies may also allow lease transfers to another business, subject to approval.
If your circumstances change, we recommend contacting us as early as possible to discuss your options.
We are ready to assist you in finding the perfect truck for your needs. Drop us a message or call us on 01424 863456 today.
Can I Buy the Van at the End of the Lease?
ExpandThis depends on the type of finance agreement you choose.
Business Contract Hire (BCH)
With Business Contract Hire, you normally return the vehicle at the end of the agreement and do not own it.
Finance Lease / Lease Purchase
These agreements may offer options to:
- Purchase the vehicle after a final balloon payment
- Continue using the vehicle for a small annual fee
- Sell the vehicle to a third party
We can explain the differences between each finance option and help you choose the most suitable agreement for your needs.
If you are looking for your ideal van, don't hesitate to drop us a message or call us on 01424 863456 today.
Can I Claim VAT on a Leased Van?
ExpandIf your business is VAT registered, you may be able to reclaim:
- Up to 100% of the VAT on lease rentals for commercial vehicles
- VAT on maintenance packages
- VAT on servicing and repairs
The amount you can reclaim depends on how the vehicle is used and the type of finance agreement chosen.
For tax advice specific to your business, we recommend speaking with your accountant.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Are Lease Payments Tax Deductible?
ExpandIn many cases, lease payments can be treated as a business expense and may be tax deductible.
The amount your business can claim depends on:
- The type of vehicle
- CO₂ emissions
- Business use percentage
- The finance agreement selected
Tax treatment can vary depending on your circumstances, so we recommend seeking advice from your accountant.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Who Pays Road Tax During the Lease?
ExpandRoad tax is usually included for the duration of the agreement on most Business Contract Hire agreements.
We will confirm exactly what is included in your contract before your lease begins.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Can I Add Signwriting or Branding to the Vehicle?
ExpandYes, signwriting and vehicle wraps are usually allowed on leased vans and commercial vehicles.
However:
- Any branding must be professionally removed before the vehicle is returned
- Damage caused during removal may result in repair charges
- Permanent paint changes may not be permitted
We recommend using removable vinyl wraps where possible.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Can I Install Roof Racks, Shelving or Tow Bars?
ExpandMany common commercial vehicle modifications are permitted, including:
Some modifications may require approval from the finance company.
Any additions may need to be removed before the vehicle is returned unless agreed otherwise.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Can Multiple Drivers Use the Vehicle?
ExpandYes, multiple drivers can usually use the vehicle, provided they are insured to drive it.
It is your responsibility to ensure:
- All drivers meet your insurer’s requirements
- The vehicle is used in accordance with the finance agreement
- Employees or additional drivers are properly authorised
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Can I Take the Vehicle Abroad?
ExpandYes, most leased vehicles can be taken abroad, subject to approval from the finance company and insurer.
You may need:
- A VE103 vehicle-on-hire certificate
- European insurance cover
- Breakdown cover for overseas travel
Please contact us before travelling so we can help arrange the required documentation.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
What Happens if the Vehicle is Stolen or Written Off?
ExpandIf the vehicle is stolen or declared a total loss:
- Your insurer will settle the market value with the finance company
- You may still need to pay any outstanding balance not covered by insurance
- GAP insurance can help cover any shortfall
Once the claim has been resolved, the lease agreement will normally be terminated.
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Do Lease Payments Increase During the Contract?
ExpandMost lease agreements have fixed monthly payments for the full contract term. Your payments will normally remain the same unless VAT rates change, you amend the agreement, or additional charges such as excess mileage or damage fees apply
Drop us a message, Request a Quote, or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
Vehicle Leasing Eligibility
Am I eligible for van leasing?
ExpandVan leasing is popular among limited companies and sole traders, but it's available to any type of business.
In order to qualify for finance, you'll need a decent credit history, a good net worth, and at least two years of trading record.
Business vans can be leased with a director's guarantee if you haven't been in business long enough to build an acceptable credit history.
Your business does not need to be VAT registered in order to lease a commercial vehicle.
To begin your journey towards the van of your dreams, drop us a message or call us on 01424 863456 today.
How old do I have to be to lease a van, car or a pickup truck?
ExpandTo lease a vehicle, you must be at least 18 years old. The purpose of this is to enable you to enter into an official financial agreement.
Vehicle leasing companies use credit checks to make sure that you can afford your monthly vehicle lease payments.
As long as you have a good credit score (which includes no debts and a stable job), you are absolutely free to lease a van or pick up the day you turn 18.
In terms of being 'too old', however, you can never be too old to lease a vehicle.
We are ready to assist you in finding your ideal vehicle. Drop us a message or call us on 01424 863456 today.
Do I need a credit check to lease a van?
ExpandWe are often asked: Do you need a credit check for a business van lease? Quite simply, yes. A credit check will be required when you apply for finance for a commercial vehicle lease for your company.
A credit check can often put people off. It's your finances that are being examined, after all. However, credit checks are an essential part of the Financial Conduct Authority's (FCA's) regulations, which we are obliged to comply with as a vehicle leasing company.
We can assist you in finding the most suitable and affordable commercial vehicle for your needs. Drop us a message or call us on 01424 863456 today.
Can I lease a pickup truck with bad credit?
ExpandLeasing is a popular means of acquiring a new truck, but it's not easy if you have a bad credit score.
Lenders might still be willing to offer you credit if they are satisfied that you can afford your lease payments, but they may ask for more or a different type of information before they do so. Your application may be rejected if there are doubts about your ability to pay the monthly pickup lease rentals.
We are ready to assist you in finding the perfect truck for your needs. Drop us a message or call us on 01424 863456 today.
Will vehicle leasing affect my credit rating?
ExpandLeasing a vehicle can affect your credit history in a positive way, but also in a negative way.
By keeping to the lease terms and making all payments on time, you could improve your credit score. The downside is that if you default, your credit score may drop, making it more challenging or more expensive for you to finance a vehicle in the future.
If you are looking for your ideal van, don't hesitate to drop us a message or call us on 01424 863456 today.
Can I lease a van through my limited company?
ExpandYes, you can lease a van through ltd company. Every day, we help businesses like yours find the right commercial vehicle at the best price.
Leasing a business van through a limited company is similar to leasing a car for personal use. The name of your company will always be on the contract when you lease a pick-up or van through a business contract hire, so all paperwork and information will be about your company.
Get started on your journey towards finding your perfect van for your business by dropping us a message or calling us on 01424 863456 today.
Can I lease a van as a sole trader?
ExpandSole traders are just as welcome to lease a van as any other business or individual, subject to a credit check and the ability to allocate funds for affordable monthly rentals.
As a sole trader, you must provide the following information:
- Name, date of birth, and marital status of the sole trader.
- Name, address, registration number, and annual turnover of the company.
- Name of bank, account number, sort code.
The funder may also ask for the last three months' bank statements if your business is less than a year old or if you have previously been refused finance.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
Does my business need to be VAT registered to lease a van?
ExpandIt is not necessary for your company to be VAT-registered in order to lease business vans.
Non-VAT-registered businesses have several options for leasing cars, vans, and pickup trucks.
We have the expertise to recommend the most suitable business van lease product according to your circumstances and needs.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
Can I lease a truck or van with points on my licence?
ExpandHaving points on your licence does not prevent you from leasing a car, van, or pickup truck. A valid full UK driving licence is all we ask for.
Drop us a message or call us on 01424 863456 today to discuss your vehicle leasing requirements.
How old does my limited company have to be before I can lease a van?
ExpandThere are no restrictions on the age of your limited company when it comes to leasing a van. We work with several lenders that have different underwriting criteria. It is possible to lease a van for a new limited company or a LTD company that hasn't been trading for long.
When your company has a very short trading history recorded with credit agencies, you may be required to provide supporting documents like profit and loss statements and balance sheets.
A newly established limited company may be required to have a guarantor for a lease agreement, either an individual (such as the company's director) or a larger company (such as the parent company). Your previous trading history might also be required by the finance company if you previously traded as a sole trader.
Our team is ready to help you find the ideal van. You can get in touch by dropping us a message or calling us directly on 01424 863456 today.
Our team is always on hand and more than happy to provide any support you need.
Vehicle Leasing Process
What is vehicle leasing and how does it work?
ExpandVehicle leasing is basically a long-term rental agreement.
Van contract hire or van leasing is one of the most convenient and affordable ways to obtain a new van or truck for your business.
There is an initial rental (often called a 'deposit') that you'll have to pay in month one of your agreement, followed by equal monthly payments for the agreed period of time (two to five years).
Vehicle lease payments are generally less than other types of finance which is exactly what makes van leasing so popular in the UK.
Leasing is also different from other types of vehicle finance because you do not own the vehicle after making all of your payments. Consequently, there is no risk of depreciation associated with ownership.
At the end of your lease agreement, the vehicle is handed back to the funder, and you're free to choose the next one, unless you chose a lease agreement with a purchase option.
Drop us a message or call us on 01424 863456 today to discuss your business vehicle leasing requirements.
How to lease a company van or car?
ExpandMany businesses find that a lease is the ideal solution for their company vehicle needs because they can benefit from using a brand new vehicle without having to pay up front. But is leasing a vehicle easy?
Getting started with van leasing begins with contacting us. Choosing the right van or pick-up for your needs doesn't require any prior knowledge since we will handle everything for you.
We will ask you a few questions about your business to determine your vehicle requirements. As part of our service, we will also arrange van lease financing on your behalf. The only thing you have to do is sign for your van delivery, and you're good to go!
We look forward to helping you find your perfect van or company car. Don’t hesitate to drop us a message or call us on 01424 863456 today.
What is the process for leasing a business vehicle from Commercial Vehicle Contracts?
ExpandFollowing receipt of your request, we will contact you to confirm your details, vehicle details, and van lease terms.
Our vehicle lease quote will be emailed to you once we receive all the required information. Both maintained and non-maintained leases will be included in your quote, as will any add-ons requested (e.g. Luton van tail lifts or pickup truck tow bars). With just one click, you can accept your quote online.
Ordering a vehicle is the next step. You will receive a customer order form confirming your van leasing deal terms and vehicle details. By signing it, you agree to the terms and pricing and give us permission to apply for vehicle financing on your behalf. Should your funder require supporting documents, we will let you know. It's rare, but it can happen if you apply for van finance as a new company or haven't built your credit history long enough.
Now, the only thing left to do is wait for the delivery of your vehicle after your finance application has been approved. Simple as that!
Drop us a message or call us on 01424 863456 today to start your vehicle leasing journey.
Alternatively, check out our blog on the vehicle leasing process.
How long does the vehicle leasing process take from start to finish?
ExpandYour van leasing application might take a couple of days to process. During this time, we may ask you additional questions or request more information from the funder. Please respond promptly.
The vehicle will be delivered to you within 7-10 days after your van leasing application has been approved, assuming the vehicle is in stock.
If the vehicle is not in stock and the order is a factory order, delivery may take up to 20 weeks (although that is a worst-case scenario).
If you are a sole trader, a private individual, or a partnership of less than three partners, we will not be able to deliver your vehicle until the 14-day cooling-off period ends.
If you have any questions, please do not hesitate to drop us a message or call us on 01424 863456 today to start your vehicle leasing journey.
Alternatively, check out our blog on the vehicle leasing process.
Do you lease used vans?
ExpandWe don't lease second-hand vans, but we offer very affordable leasing rates on brand-new commercial models.
Furthermore, we offer brand new pick-up trucks, curtain side vans, fridge/freezer vans, and drop-side trucks on van contract hire. With our range of lease options, you are sure to find a van deal that fits your budget.
If you need any assistance choosing a new vehicle, feel free to reach out to us.
Do you offer part-exchange on van leasing?
ExpandIt's a question we get asked a lot. Is it possible to part-exchange your old van when leasing?
Leased vans aren't bought or financed in the traditional way, so you can't part-exchange your current vehicle for one that's leased. You can, however, sell your current vehicle to a dealer and use the proceeds to pay for the initial rental of your van lease.
Don’t hesitate to call us on 01424 863 456 if you have any further questions.
Can I view or test drive the vehicle before leasing?
ExpandViewing or testing the vehicles is not possible with us. We deliver all vehicles we lease directly to our customers from the dealer.
If needed, your local dealer will be happy to arrange a viewing or a test drive of the vehicle of your choice.
If you have any further questions or would like a quote on a car lease, van lease or pickup truck lease, feel free to drop us a message or call us on 01424 863456 today to start your vehicle leasing journey.
Do you offer ‘no deposit’ van leasing?
ExpandCurrently, Commercial Vehicle Contracts do not offer 'no deposit' vehicle leases to new customers.
There may be times when we can offer a lower initial rental, equal to one or two monthly rentals, however, leasing a car, a van or a truck always requires a deposit (initial rental), which is paid in month one.
It is important to keep in mind that a lower deposit will result in higher monthly rentals.
For more information about our low deposit van leasing deals, please contact one of our sales consultants on 01424 863 456
Types of Vehicle Lease
What are my options when it comes to leasing a business van?
ExpandWe offer various business van and car leasing options to satisfy every business' needs, requirements, and circumstances.
Business Contract Hire (BCH) and Finance Lease (FL) are the best options if you do not need to own the van once the lease period is over.
If you don't like the idea of returning the van at the end of your contract, a Business Hire Purchase or Business Contract Purchase may be the best option for you.
For help choosing the right lease product for your business van lease, please call us on 01424 863 456.
What is Business Contract Hire?
ExpandKnown as business van leasing, Business Contract Hire is a flexible vehicle financing solution that can help you avoid the risks associated with vehicle ownership and reduce business expenses. BCH is a favourite fleet van leasing option in the UK.
Business Contract Hire is basically a long-term van rental, but it can also apply to business cars or pickup trucks. BCH agreements include an initial rental (deposit) paid in month one, fixed monthly rentals for the duration of the contract, and the annual mileage limits. Lease contracts for business vans last between 24 and 60 months.
What happens at the end of a van contract hire agreement?
The vehicle is simply returned to the funder without any payments due (providing that there is no excess mileage or damage).
Business Contract Hire agreements are popular because of their low initial costs. This represents a considerable savings over buying a van outright. Business owners also appreciate that the BCH eliminates depreciation concerns and includes road tax in monthly rentals.
BCH also offers an optional full vehicle maintenance package for a small monthly fee.
Another viable option is to lease a van or a pickup truck through a Finance Lease.
Are you having trouble choosing the right van lease product? Get in touch with us by calling 01424 863456 or send us a message using our contact form.
What is Finance Lease on a van?
ExpandFinance Lease (FL) is a business vehicle leasing contract, very similar to Business Contract Hire (BCH).
You'll agree on an initial rental, annual mileage and the duration of your lease agreement, but you won't be able to walk away from the vehicle as you can with BCH.
A Finance Lease includes a balloon payment that represents the value of the vehicle at the end of the lease. It will be necessary for you to sell your vehicle to a third party (or ask the funder to do that for you for a small fee) and use the funds to pay the balloon payment.
You keep the difference if you sell your van for more than the funder valued it (for example, if you kept it well or didn't use your mileage allowance). However, if you sell for less (e.g. the vehicle is damaged or the mileage is exceeded), you will have to pay the difference.
Finance leases include Road Tax for the first 12 months of the agreement.
Need any help choosing the right business van lease deal? Contact us today or call us on 01424 863456
Business Contract Hire or Finance Lease - which van leasing option is better?
ExpandIf you are a business customer, Contract Hire and Finance Lease are both viable vehicle finance options.
If you're looking for hassle-free van leasing where you simply return the vehicle at the end, Contract Hire could be the right option for you.
With Finance Lease, however, you have more control over the vehicle and, if you look after it well, you might reap the benefits in the end. This is not possible when leasing the van on Business Contract Hire, as a higher residual value will benefit the funder instead of you.
Finance Lease might also be more suitable for businesses that require more practical use of the van, where there's a chance for damage to occur.
Still unsure, check out our blog, focusing on the key differences between the two.
Both agreements come with optional vehicle maintenance.
Please get in touch if you need any help choosing between these two options.
What is Flexible Lease?
ExpandFlexible Lease is basically a Finance Lease, but without the balloon payment at the end of the contract.
Your initial rental payment will be followed by regular monthly payments for the duration of your agreement. The Flexible Lease covers the use of the vehicle up to an agreed mileage and includes road tax for the first year.
Since there is no large payment at the end of the van leasing agreement to defer a part of the vehicle cost, you will have to pay off the total cost of the van in monthly instalments. As a result, your monthly rentals will be higher when compared to Finance Lease.
When the agreement ends, you won't be able to keep the van. In the same way as with Finance Lease, you'll have to sell the van to a third party, but you won't be paying the proceeds to the funder. Instead, you'll keep it. When you sell the van for more than the funder estimates it will be worth at the end of the agreement, that is where you win.
Any question you can't find an answer to? Drop us a message or call us on 01424 863456 today.
What is Business Hire Purchase?
ExpandBusiness Hire Purchase (BHP) is a traditional method of financing a business van that allows you to drive a brand-new commercial vehicle and spread the cost over time. With Business Hire van Purchase, you can also enjoy unlimited mileage.
If you maintain the agreement to the end, you will become the owner of the van. The vehicle is yours once you have paid the final monthly payment and the option to purchase fee (if applicable).
Don't hesitate to call us on 01424 863 456 if you need any help or if you'd like a quote on a van leasing deal.
What is Business Contract Purchase?
ExpandFor those who want full ownership of their vans and trucks, a Business Contract Purchase might make the most sense. By choosing this option, you are able to pay a small amount upfront and have fixed monthly payments with a pre-determined interest rate for the term of the agreement.
After the van leasing contract ends, you will have the option to purchase the van from your funder by paying the Guaranteed Future Minimum Value. The amount you will be required to pay is agreed upon prior to signing your lease contract.
You can also return the van to the funder at the end of the fixed term for disposal. In that case, excess mileage costs will apply if the vehicle has exceeded its contractual mileage.
Business Contract Purchase is a viable option to lease a refrigerated van, a dropside or tipper van or a Luton van if you aren't sure if you want to keep the vehicle or return it once the contract comes to an end, as it gives you more time to decide.
Any questions? We are here to help! Use our contact form or call us on 01424 863 456.
Which is better: Lease Purchase or Hire Purchase?
ExpandThere are many similarities between Lease Purchase and Hire Purchase, but their costs vary considerably, and one might be better suited to your budget than the other.
Both contracts require you to pay a deposit followed by monthly payments, essentially working towards owning the vehicle.
Following the end of the Hire Purchase (HP) contract, you have the option to keep the vehicle. All you need to do is to pay a small ownership fee of around £100, and then the car is legally yours. Your other option is to return the vehicle to the funder.
A lease Purchase requires you to make a final payment (usually about 20% of the value of the vehicle) before you become a legal owner but unlike the car HP, this form of car finance doesn't give you the option of handing the vehicle back.
Car Hire Purchase may work cheaper (if you can afford higher monthly payments) because you pay off the cost of the vehicle more quickly, and therefore pay less interest. Lease Purchase offers lower monthly payments, which might be ideal if your monthly budget is tight. On the other hand, if you decide to go for a Lease Purchase, be prepared for that big final payment.
Need more help? Please contact one of our consultants, drop us a message or call us on 01424 863456 today.
What's the difference between Business Contract Hire and Personal Contract Hire?
ExpandBusiness Contract Hire (BCH) and Personal Contract Hire (PCH) are the two main types of car leasing options in the UK.
You'll have access to the same selection of cars with both options and have the same flexibility regarding the deposit and monthly payments, but the way you're allowed to use the car will differ.
If you lease a car on PCH, you can use it however you like (as long as you stay within the agreed mileage limits).
If you lease a car on BCH, you will have to document carefully to prove that the car is solely used for business in order to get a 100% VAT deduction.
Drop us a message or call us on 01424 863456 today.
Vehicle Lease Terms
Is the initial rental and deposit the same?
ExpandOur van leasing customers often refer to the initial rental as a 'deposit,' so yes, it is the same thing.
When you lease a car, van, or pick-up truck, you're charged for usage up to pre-agreed mileage for the agreed period. Your funder calculates the cost of your vehicle lease, deducts the initial rental and spreads the remaining balance over the lease period.
Since the initial rental is deducted from the overall balance, the remaining balance will be reduced - in other words, the higher the initial rental, the lower the monthly rental. This is something you should keep in mind when requesting a quote. It's really an individual decision whether you would prefer to pay lower initial rental and higher monthly rentals or pay more upfront and enjoy lower monthly costs.
The initial rental is your first payment made in month one of the vehicle lease agreement. As an example, if you are leasing a van for 3 years and your initial rental is £2,000 and your monthly rental is £250, you will pay 1 x £2,000 and 35 x £250.
Don't hesitate to drop us a message or call us on 01424 863456 today.
How much is the deposit on the van lease?
ExpandHow much you'd like to pay as an initial rental is totally up to you, but most funders will expect no less than 3 monthly rentals. E.g. if your monthly rental is £300, your initial rental will be £900.
The deposit is paid in month one of your vehicle lease agreement, but is not due until the vehicle is delivered. When you accept the delivery, a van lease agreement is sealed, and payments begin.
Questions? We are here to answer them! Call us on 01424 863456 or use our contact form.
Do you offer short-term van hire?
ExpandIt is not possible to lease a van for a short period of time from us. Our van leasing is available for a minimum of 2 years and the maximum term is 5 years. The same rule applies to our pickup leasing deals and car leasing.
Please feel free to call us on 01424 863 456 if you have further questions about leasing a van.
How long can I lease a vehicle for?
ExpandA van lease is a long-term rental agreement. When you choose one of our best van leasing deals, you can customise the duration of the contract to suit your needs.
The minimum lease period is 2 years, and the longest agreement duration allowed in vehicle leasing is 5 years, whether it be a company car, a refrigerated van or a pick-up truck.
Need help? Or maybe a quote? Get in touch!
Why do I need to declare my mileage when leasing a van?
ExpandThe reason for annual mileage limits in car and van leasing is vehicle depreciation. Depreciation is simply how much your vehicle is worth after a period of use. As it gets older and is used more, every van or car depreciates. Plus, the more miles it has on its clock, the greater the depreciation, which means it decreases in value. When you lease a vehicle, depreciation is taken into account and is included in your monthly rental payments.
With the annual mileage allowance in your finance agreement, your funder can estimate the residual value of your vehicle once the lease period is over - in other words, the value of the vehicle after you return it. Using the depreciation (the difference between the value of the vehicle when brand new and its value when returned), the funder calculates your monthly rental payments. Therefore, higher mileage allowances result in higher monthly rentals. If you go over your mileage allowance on a leased vehicle, you'll have to pay the excess mileage charge.
Don't hesitate to call us on 01424 863 456 if you need any help or if you'd like a quote.
How do I choose the right mileage allowance?
ExpandThe mileage allowance you choose for your personal car or business van lease must be realistic. You have complete control over what mileage limit you set on your vehicle lease. Your funder cannot impose a specific allowance on you.
Suppose you are confident that your driving needs won't change from the previous year. If so, you might want to check your past MOT certificates to get a good idea of the mileage allowance that you will need. Or, you can figure out how many miles you travel in a typical month and multiply it by 12.
For best results, we recommend averaging your mileage over the course of a year. For example, you may use your vehicle more in winter when it's cold, but less in summer when you walk more or go on holidays abroad. Keep these in mind so your estimation is as accurate as possible.
Any questions? We are here to help! Use our contact form or call us on 01424 863 456.
What is the maximum mileage allowance on a van lease?
ExpandThere is no official limit on the number of miles you can declare when leasing a van, a car or any other vehicle. However, the majority of vehicle leasing companies are unlikely to agree to more than 50,000 miles a year or 180,000 miles over the course of the agreement. This is because the more miles a vehicle travels, the less valuable it becomes. It wouldn't be worth it for you to pay such high rentals, nor for the finance company to try to sell the vehicle with such low value at the end of the agreement.
Don't worry about this, though. We can assure you that with this many miles available and proper guidance from Commercial Vehicle Contracts, you will receive a suitable mileage allowance on your van leasing deal.
Need more help? Please contact one of our leasing consultants on 01424 863 456.
Can I change my mileage during the contract?
ExpandIt is possible to change your mileage on your lease agreement however this can only be done directly with the finance provider and at their discretion.
Providing that your funder allows mileage amendments, every customer can apply unless:
- The account is in arrears or is subject to default or insolvency
- The modifying agreement is incomplete
The criteria for a mileage amendment vary, not only from funder to funder but also from contract to contract.
- Most finance providers won't allow mileage amendments for the first 12 months from the date you signed your lease agreement.
- Most funders will only allow a contract amendment if at least six payments are outstanding on the original agreement.
- Depending on the finance provider, they may disallow changes to the mileage allowance for customers on a Personal Contract Hire agreement.
- Some finance providers don't allow a mileage amendment for Sole Traders or Partnerships with less than 3 partners.
- Some funders will only change your mileage allowance if the mileage amendment is at least 10% of the initially agreed mileage (e.g. if your original mileage was 10,000, you need to increase it to at least 11,000 miles)
- Funders will charge an administration fee for each vehicle you request a mileage amendment for
Please call os on 01424 863 456 if you'd like to discuss this further.
What happens when I go over my mileage limit?
ExpandIt's fairly common for our business customers to exceed their mileage limit on their van lease. Despite an excellent initial assumption, the circumstances might change during the course of the contract. Your business may have expanded, or you visit more customers in distant cities. In the case of a personal car lease, you might have recently moved house, and your car will now cover more mileage for your commute to and from work.
Sometimes you can't predict everything, but what happens when you exceed the mileage on your finance contract? When you return the vehicle at the end of your lease, your funder will review the mileage amount and then charge a fee per mile you have exceeded.
Need more help? Drop us a message or call us on 01424 863456 and we'll be more than happy to help.
What is Excess Mileage charge and how is it calculated?
ExpandWhen you return the vehicle to the funder at the end of your contract, it will undergo a process to determine its condition, which includes an odometer check. The finance company will then calculate how much mileage you have exceeded your agreed mileage and charge you for it. The excess mileage charge is set in your finance agreement and should be checked before signing.
Excess charges can range from about 6p to £1 plus VAT per mile above your agreed limit, depending on your finance company and vehicle model. There are some funders that increase the excess mileage charge, i.e. your excess mileage can be 6p per mile up to 10% of your contracted mileage, and 9p for any additional miles.
Example:
Mr Andrews leased a Peugeot Partner for 3 years with an annual mileage allowance of 10,000 miles, totalling 30,000 miles for the contract.
At the end of his lease, the vehicle had 35,000 miles.
His excess mileage rate was 6p per mile.
5,000 excess miles × £0.06 = £300 + VAT
This is the total excess mileage charge due.
Excess mileage charge on a business van – VAT and taxes
Businesses that exceed their mileage can offset the resulting charge:
- The excess mileage charge is treated as a service charge, meaning it can be fully offset against corporation tax.
- VAT is also reclaimable:
- 100% reclaimable on commercial vehicles
- 50–100% reclaimable on cars, depending on usage
This makes the charge more manageable for VAT-registered businesses
Please get in touch if you have any questions. Or call us on 01424 863456 and speak with a team member today.
Lease Payments
How are my monthly van lease payment calculated?
ExpandSeveral factors can affect lease prices, which is why prices and deals fluctuate so frequently. Vehicle leasing agreements are usually priced based on:
- Vehicle cost (also known as purchase price or OTR value)
- Contract terms (such as contract length, annual mileage, and initial rental)
- The anticipated residual value of the vehicle (how much the vehicle is likely to be worth at the end of the contract)
- Depreciation value (the estimated difference between the car's value at the start and end of the contract)
- Additional support from the manufacturer or funder
- Contract options (such as maintenance packages)
With a van contract hire agreement, your monthly payments cover the depreciation of the vehicle over the lease period, unlike with a purchase agreement. In addition to the factors listed above, the higher the value of the car or van at the end of the contract, the lower the monthly payments. Some vehicles have a stronger residual value, which explains this. In some cases, even if you lease a more expensive vehicle, you may pay the same as you would if you leased a cheaper one.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
When will my initial rental payment be taken?
ExpandIn most cases, the initial lease rental is due upon the arrival of the vehicle. You will be automatically charged by direct debit from the account you chose.
To avoid additional fees, please ensure that you have the funds available.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
When do I start paying my monthly rentals on a pickup truck lease?
ExpandOnce your new pick up truck has arrived, it's time to start making your lease payments.
When you signed your pickup lease agreement, you also permitted your funder to direct debit your monthly rental payments from either your personal or business bank account. Every month, your funder will collect the money automatically.
Payments are usually collected each month on the same day that your vehicle was delivered (i.e. if you received your vehicle on the 10th, the money will be collected on the 10th each month). In order to change the date of your direct debit, you must contact your funder directly.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
How do I make my van lease payments?
ExpandNow that your new shiny van has arrived, it's time to start making your van contract hire payments.
In addition to signing your van lease, you also agreed to authorise your funder to direct debit your monthly rental payments from either a personal or business account. The money will be collected by your funder automatically on the same day every month.
You need to contact your funder directly if you want to change the date of your direct debit.
Don't hesitate to contact us if you have further questions. You can do this either by calling us on 01424 863 456 or by using our contact form.
Will I get my vehicle lease deposit back at the end of my agreement?
ExpandOften called a deposit, the first payment on a car, van, or pickup truck lease is actually an initial rental. In other words, it's the first payment made toward your vehicle lease, and it's deducted from the total amount owed to the funder, so it cannot be refunded.
Any questions? We are here to help! Use our contact form or call us on 01424 863 456.
What can I do if I can't make my vehicle lease payment?
ExpandThe monthly rental on your lease car or van may suddenly become unaffordable if your financial circumstances change, whether due to redundancy or something else. Finding yourself in this situation can be distressing but ignoring the situation can lead to even more problems.
Failure to make monthly payments is normally a breach of the lease, and the lessor can repossess the vehicle. It is common for people to believe that they can simply hand their leased car, van or pickup back and stop making rental payments if they run into financial problems. As a matter of fact, this isn't the case. If you're in a leasing agreement, you can't necessarily walk away without penalty when returning the vehicle. Returning the vehicle before the end of your lease agreement may require you to make the full lease payments. Early termination can be allowed in vehicle leases, but it can come with significant fees. Therefore, you'll need to think carefully before cancelling your contract.
You may be tempted to stop the payments. This, however, is not recommended. Your credit rating will be negatively affected, and you may end up owing more due to late rentals and additional charges. You will also incur extra charges if your finance company repossesses your vehicle. In the event that the lender sells the car or van and puts the proceeds against your debt, you will still be responsible for the difference.
When stopping your payments isn't an option and you don't want to terminate your agreement early either, you might wonder what else you can do. This will depend on your particular circumstances, such as whether the financial difficulties are temporary or expected to last for some time, as well as the terms of your financing agreement. To find out what your options are, contact your finance provider as soon as possible.
Should you require further assistance, you can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Why did my funder send me an additional invoice half way though my lease ageement?
ExpandHaving been on a van contract hire for a year, you receive an additional invoice. It may surprise you. Your deal included everything, didn't it? The answer is yes, technically.
You will never have to make any extra payments on your car or van lease deal. However, your funder may send you an additional invoice in two circumstances:
- a rise in the road tax
- an increase in the VAT rate
The funder will ask you for an additional payment for the difference between the rate they used in their calculation at that time and a new rate, since they use the rates in effect at the time the agreement was signed.
If you received an unexpected invoice from your vehicle lease funder and you'd like to discuss it, we are here to help. Please call us on 01424 863 456.
Vehicle Delivery
How long does the delivery of a new van take?
ExpandAfter you have been approved for van leasing and have undergone the necessary credit checks, the vehicle will be delivered directly to you within approximately 7-10 days, assuming the vehicle is in stock. A factory order for a vehicle that is not in stock may take up to 20 weeks to arrive, depending on the manufacturer.
According to the Consumer Credit Act 1974, sole traders, private individuals, and partnerships with fewer than 3 partners have a 14-day 'cooling-off period'. It begins the day after you sign your lease agreement. We cannot deliver your vehicle until this period has passed.
Limited companies leasing a van will generally have it delivered within 7 days unless they require a specialist van conversion, which can take a couple of weeks to complete.
Should you require further assistance, you can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Can I request a specific delivery date?
ExpandYou will be informed in advance when your new lease vehicle will be delivered. If this date does not suit you, we can change it to a more convenient date. It is our goal to accommodate your request as much as possible.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
How will my new van be delivered?
ExpandYou can choose any location in the mainland UK for your vehicle to be delivered to, and it will be delivered free of charge.
Most vehicles are delivered to you by road, and they have delivery mileage when they arrive. Your funder receives a record of the current mileage when the vehicle is delivered, and this mileage is not counted towards your contract mileage.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Can I choose where my van will be delivered to?
ExpandWe deliver all of our vehicles free of charge to any location of your choice. It can be your home address, your work address, or your business address. There is no requirement that the delivery address match the address on the customer order form. It is important that you inform us of the delivery address for your new leased vehicle.
Need help? Or maybe a quote? Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Does the delivery mileage count towards my mileage limit?
ExpandWhen you lease a van with us (or any other leasing company), the vehicle will typically be delivered by road and may have some mileage when it arrives. Don't worry, the delivery person will make a note of the mileage and send it to your funder. Their system will record this, and your mileage limit will not be affected.
Should you require further assistance, you can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Will you deliver abroad?
ExpandThere is a possibility of leasing a van in the UK and taking it abroad, but at the moment we do not lease vans to overseas customers.
Delivery to the dock can be arranged for Northern Ireland, but you have to collect the vehicle from there.
Don't hesitate to call us on 01424 863 456 if you need any help or if you'd like a quote.
What happens if I'm not happy with my vehicle when it arrives?
ExpandSince your new vehicle will be delivered directly from a dealership, we won't be able to see it before it arrives. However, we promise to resolve any issue with your new van or car, such as a mistake with the specification, missing extras, vehicle colour or damage, as soon as possible.
Make sure to inspect the vehicle, take pictures, and note any questions/discrepancies on the delivery note when you sign for the vehicle. Please let us know as soon as possible so that we can rectify the situation.
Any questions? We are here to help! Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Insurance & Road Tax
Will Road Tax be included in my van lease agreement?
ExpandIt depends on what type of van lease you have. A Business Contract Hire agreement includes Road Tax for the duration of the contract, but a Finance Lease only for the first year.
Any questions? We are here to help! Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Do lease vans come with insurance?
ExpandLeased vans in the UK do not typically come with insurance included in the monthly payments; therefore, it's your responsibility to make sure the vehicle is insured at the point of delivery.
Any questions? We are here to help! Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
What type of insurance do I need for my leased truck?
ExpandLeased vehicles must be insured on a fully comprehensive insurance policy, which covers the full cost of repairing any damage to the vehicle, as well as third-party property, in the event of an accident.
The main policyholder must be the same as the person getting the finance. The certificate must also contain the name and registration number of your company (if applicable).
Visit our Insuring lease vehicle page for more information.
Any questions? We are here to help! Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re more than happy to help in any way we can.
Who's the registered owner of a leased vehicle for insurance purposes?
ExpandThis question doesn't have a simple answer, as it's determined by your choice of a lease product.
With Business Contract Hire (BCH) agreements, the vehicle remains the property of the funder and will be registered to them. In essence, you will "hire" it for a specified period and then return it - it will never be yours.
Finance Lease agreements are similar to Contract Hire in that you will never own your vehicle. You are the named driver for the duration of the agreement, while the funder is the owner and registered keeper of the vehicle.
Business Hire Purchase (BHP)
When a vehicle is purchased on finance, the registered keeper will be the person paying off the finance. The owner of the vehicle is the finance company until the finance agreement is fully settled.
Any questions? We are here to help! Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Who holds the V5C registration certificate?
ExpandThe registered keeper of a leased vehicle is the Finance Company and not the driver. Therefore, the Finance Company will hold the V5C registration certificate.
If you'd like to discuss this topic in more detail, you can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re always here and more than happy to help in any way we can.
Warranty, MOT, Servicing & Maintenance
Do leased vehicles come with warranty?
ExpandYes, leased vehicles come with a warranty. The type and duration of the warranty vary depending on the manufacturer.
All of our vehicles come with the UK manufacturer's warranty, which means that any faults that occur during the warranty period should be covered by the manufacturer, excluding certain limitations and wear and tear. The length of the warranty can vary from 1 year to 7 years.
However, it is important to note that if you lease a vehicle for longer than the manufacturer's warranty, you'll be better off opting for a maintained agreement.
Maintenance vs Warranty: What’s the difference?
Do you offer warranty on van conversions?
ExpandAll of our van conversions, such as refrigerated vans, curtain side vans, Luton vans, dropsides and tippers come with 12 12-month warranty.
Maintenance vs Warranty: What’s the difference?
Who's responsible for vehicle's MOT?
ExpandIf your van lease contract is for longer than 3 years, then you are responsible for getting your leased vehicle MOT'd.
If you opted for a funder-maintained agreement, you can arrange it free of charge, but if your agreement is customer-maintained, MOT has to be done at your expense.
Who's responsible for servicing of a leased vehicle?
ExpandThe servicing of a leased vehicle works differently depending on the terms of the lease contract.
If the lease contract includes a maintenance cover, then the lessee must contact the finance company to book the vehicle into an approved garage for its service.
If the lessee decides to handle maintenance themselves, they will have to sort out their own arrangements for the vehicle to be serviced. However, under the terms of the lease contract, the lessee must also service the leased vehicle at regular intervals, which could be anywhere from every 6 months to once every 2 years.
It is important to note that leasing a vehicle also means agreeing to maintain the condition of the vehicle in line with the manufacturer’s recommendations, and it is the responsibility of the lessee to arrange this.
Therefore, whether the lease contract includes maintenance cover or not, the lessee must ensure that the vehicle is serviced at regular intervals and maintained in line with the manufacturer’s recommendations.
Maintenance vs Warranty: What’s the difference?
What does the funder maintained agreement include?
ExpandFunder maintained agreement covers routine servicing and maintenance for the duration of the contract, mechanical repairs due to fair wear and tear, including batteries and exhausts, breakdown assistance (dependent on the finance provider), MOT tests, service booking and management service, and tyre repair and/or like-for-like replacement.
Maintained agreement does not cover damage repairs.
To learn more, visit our Vehicle Maintenance page or read our blog:
Maintenance vs Warranty: What’s the difference?
How do I book a funder maintained vehicle MOT, maintenance, or service?
ExpandEverything you need to schedule a vehicle MOT, service, or repair is in your Welcome Pack, which you received via email on the day of your vehicle delivery.
Please contact your account manager, or call us on 01424 863 456 if you can't find it, and we'll be happy to resend it.
Lease Contract Amendments & Cancellations
Can I increase my van mileage allowance?
ExpandYes, in most cases it is possible to amend the mileage allowance on a van lease (or any other vehicle lease in that matter). Please bear in mind that an increased mileage allowance will result in increased monthly rentals.
Mileage adjustment is a formal change to your vehicle lease agreement, and it can only be made by the finance company and is at their discretion. Funders have different rules about mileage allowance alterations; however, most of them won't approve mileage amendments in the first 12 months and the last 6 months of your vehicle lease agreement.
To amend your mileage allowance on an existing contract, just give your account manager a call on 01424 863 456.
Can I swap my leased van for another one?
ExpandImagine you're leasing a small van but your business has grown beyond its capacity and you need something bigger. Can you exchange your leased vehicle for another one under the same agreement?
The answer is no, unfortunately. You may be able to terminate your lease early and get a new lease, but early termination can be expensive. Alternatively, if your funder allows lease transfers, you can let someone else continue with your lease while you take on a new van lease. There are websites like 'Swap a Lease' with a wide membership base of people searching for short commitment, low cost, and no deposit leasing.
Questions? We are here to answer them!
Can I return my leased vehicle early?
ExpandIf you wish to end your car, van, or pickup truck lease contract early, you can apply for early termination. An early termination occurs when a customer wants to end their vehicle lease contract before the end of the agreed term. When a customer requests an early termination, the finance provider calculates a set fee based on the amount of time left on the lease agreement.
Early vehicle lease termination is usually associated with substantial penalties and fees. Therefore, you should carefully consider this decision before you exit the lease contract before its agreed-upon end date. If your funder allows lease transfers, you could consider letting someone else continue with your lease. There are websites like 'Swap a Lease' with a wide membership base of people searching for short commitment, low cost, and no deposit leasing.
Finance providers offer early termination at their discretion, but it is not available on all contracts. To discuss your options, contact us in the first instance.
Can I extend my van lease agreement?
ExpandMost funders will allow you to extend your lease for up to 12 months.
Contact your account manager by dropping us a message or calling us directly on 01424 863456 today. We're more than happy to help in any way we can.
Can I upgrade my leased vehicle early?
ExpandYou can upgrade your leased vehicle early with Commercial Vehicle Contracts; however, your existing agreement will need to be settled before a new lease can begin.
In many cases, upgrading early can be financially worthwhile—especially if a new offer better suits your needs or provides long-term savings. The exact benefits will depend on the remaining terms and conditions of your current lease, so we recommend speaking with our team to review your options and determine the most cost-effective route forward
My business changed from sole trader to limited company. Do I have to tell my funder?
ExpandIf you have changed your company type / legal status, i.e. changed from being a sole trader to a limited company, please call us on 01424 863 456, as we will need to transfer the agreement to the new company.
What happens if the person who holds the vehicle lease contract passes away?
ExpandIn the event that the car or van lease holder passes away before the end of the contract, we will do our best to make the process as easy as possible for their family.
We would appreciate it if you could provide the following information when you contact us so we can locate the lease details:
- The full name of the contract holder
- The registration of the vehicle
- Your relationship with the contract holder
If the lease is terminated before its expiration date, an early termination charge is usually applied, and, where possible, we will assist with getting any early termination quotes needed from the funder.
It may also be possible for the funder to transfer the lease to another individual, such as a family member, for the remaining term of the contract. Not all funders offer this option, and those who do consider it individually.
If the lease has a guarantor, it usually becomes their responsibility to continue payments until the lease ends. It is recommended that they contact the funder as soon as possible to discuss payments.
Please get in touch on 01424 863 456 so we can assist you.
End of Vehicle Lease Contract
What happens at the end of the vehicle lease?
ExpandWhat happens at the end of a vehicle lease contract will depend on the type of agreement you hold. For Business Contract Hire, at the end of the lease term, you will typically return the vehicle to the funder with nothing left to pay, provided it is in good condition, and you have not exceeded the mileage limit.
With a Finance Lease, you will need to sell the vehicle to pay off the balloon payment before you can choose a new vehicle. If you sell the vehicle for less than the balloon payment, you will have to cover the difference. But if you sell for more, you can keep around 97% of the difference.
If you have a purchase agreement, you will usually have to pay the balloon payment or a purchase fee to become the owner of the vehicle. Alternatively, you can choose to return the vehicle and get a new one.
It's important to check the specific terms of your lease agreement to understand the requirements for returning the vehicle at the end of the lease term, including any fees or charges that may apply.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today.
How to prepare leased vehicle for the end-of-contract?
ExpandImagine you're leasing a small van, but your business has grown beyond its capacity, and you need something bigger. Can you exchange your leased vehicle for another one under the same agreement?
The answer is no, unfortunately. You may be able to terminate your lease early and get a new lease, but early termination can be expensive. Alternatively, if your funder allows lease transfers, you can let someone else continue with your lease while you take on a new van lease. There are websites like 'Swap a Lease' with a wide membership base of people searching for short commitment, low cost, and no deposit leasing.
Questions? We are here to answer them! Should you require further assistance, you can get in touch by dropping us a message or calling us directly on 01424 863456 today.
Do I have to clean the vehicle before collection?
ExpandWhile you are not necessarily required to carry out a full valet or professional cleaning, it is generally a good idea to clean the vehicle thoroughly before returning it to the funder. This will help ensure that the vehicle is in good condition.
When cleaning the vehicle, it's important to pay attention to both the interior and exterior. This includes removing any personal belongings, vacuuming the carpets, wiping down surfaces, and cleaning the windows. On the exterior, you should wash the vehicle, clean the wheels and tyres, and remove any dirt or debris that may have accumulated.
It's worth noting that the specific requirements for returning a leased vehicle may vary depending on the lease agreement, so it's important to review your agreement carefully to confirm any specific requirements or expectations.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
Does the signwriting need to be removed from a leased van before returning it?
ExpandWhether the sign writing on your leased van was included in your lease agreement or added after the vehicle was delivered, it's important to remove all vehicle decals before returning it to the funder.
Failure to remove the signwriting may result in a minimum fee of £50 + VAT, though the exact amount will depend on the funder, the size of the vehicle, and the extent of the signwriting.
To avoid any unexpected charges, it's best to carefully remove all decals and restore the vehicle to its original condition before returning it.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
I installed deadlocks on my leased van. Do I have to remove them before I return the van?
ExpandWhen you lease a vehicle, you enter into a legally binding agreement with the finance provider. The terms of the lease agreement include specific details about the vehicle, including any optional extras that may be included in the vehicle. Modifications to the vehicle that are not included in the original lease agreement are considered unauthorised alterations because they were not approved by the finance provider.
If you have installed deadlocks on your leased van without the approval of the finance provider, you may be in breach of your lease agreement.
However, removing the deadlocks may cause damage to your van. In this case, it may be best to leave the deadlocks in place and inform the finance provider that they were installed. Depending on the situation, they may allow the deadlocks to remain on the vehicle or provide guidance on how to proceed.
It is important to remember that any alterations to a leased vehicle should be discussed with the finance provider before making any changes to the vehicle. This can help to avoid any potential issues or penalties when returning the vehicle at the end of the lease term.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
How do I know when my van lease is up?
ExpandYour dedicated account manager will stay in regular contact and monitor your agreement throughout your lease term. Around six months before your contract ends, they will reach out to discuss your upcoming options. During this conversation, you can explore whether you’d like to extend your current lease, purchase the vehicle (if your agreement permits), or renew your lease by selecting a new vehicle.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us.
You can get in touch by dropping us a message or calling us directly on 01424 863456 today.
We’re committed to helping you and are always pleased to offer our assistance.
Who is responsible for arranging the vehicle collection at the end of the lease agreement?
ExpandIf your funder for the leased vehicle is either Lex or Leaseplan, the vehicle collection process will be arranged by Commercial Vehicle Contracts on your behalf. We will contact you to arrange a convenient date and time for the collection of the vehicle.
In all other cases, you will need to arrange the collection of the vehicle directly with the funder. This process may involve contacting them to request a collection date, as well as arranging for the return of the vehicle keys and any necessary paperwork.
It's important to check the specific terms of your lease agreement to understand the requirements for returning the vehicle at the end of the lease term.
Alternatively, contact your dedicated account manager on 01424 863456 or drop us a message.
Is it my responsibility to sell the van I took on Finance Lease?
ExpandAt the end of a finance lease, you are responsible for selling the vehicle to a third party.
However, most finance companies offer a service where they can sell the vehicle on your behalf. This can be convenient if you do not want to deal with the hassle of selling the vehicle yourself. However, the finance company will typically charge a fee for this service.
It's important to note that if you decide to sell the vehicle yourself, you will need to ensure that the sale price is sufficient to cover the residual value of the vehicle as specified in your lease agreement. If the sale price is less than the balloon payment, then you will be responsible for paying the difference to the finance company.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
Is it possible to buy my leased vehicle at the end of my contract?
ExpandWhether or not you can buy the vehicle from the leasing company after the end of the contract depends on the specific type of lease agreement. If you have a Contract Purchase or Lease Purchase agreement, you have the option to take ownership of the vehicle at the end of the lease. However, if you have a Contract Hire or Finance Lease agreement, you do not have the option to own the vehicle at the end of the lease.
Some finance providers may offer the vehicle for sale after the agreement has ended, which you can inquire about by contacting them or checking their website.
Contact your account manager on 01424 863 456 if you'd like to discuss your options.
What happens if there's damage to my lease vehicle?
ExpandAt the end of a lease term, you may be charged for any damage to the vehicle that is considered beyond "fair wear and tear". "Fair wear and tear" is the natural wear and tear that occurs during normal use of the vehicle.
The BVRLA Fair Wear and Tear guide provides guidelines on what is considered "fair wear and tear" for leased vehicles in the UK. If the damage is beyond "fair wear and tear", end-of-lease charges may occur to compensate the leasing company for the cost of rectifying the damage.
It is important to keep your lease vehicle well-maintained to avoid end-of-lease charges.
Need more help? You can get in touch by dropping us a message or calling us directly on 01424 863456 today. Whatever you need, our team is here and ready to help.
If I want to lease another van after my current contract ends, do I have to pay another deposit?
ExpandThe deposit paid on a vehicle lease, which is also known as the initial rental, is used to reduce the monthly payments you make over the lease term. The finance company calculates the cost of the lease, deducts the initial rental, and then spreads the remaining balance over the lease period. This means that the initial rental is considered a cost of the vehicle lease and is not refundable. Therefore, it can't be used to cover the cost of the deposit on your next vehicle lease.
It's important to note that the deposit paid on one vehicle cannot be used again on your next vehicle lease, as it is specific to the individual lease agreement. This means that if you decide to lease a new vehicle, you will need to pay a new initial rental deposit.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
Will I be charged for the vehicle modifications not included in my lease agreement?
ExpandWhen you lease a vehicle, you enter into a legally binding agreement with the finance provider. The terms of the lease agreement include specific details about the vehicle, including any optional extras that may be included in the vehicle. Modifications to the vehicle that are not included in the original lease agreement are considered unauthorised alterations because they were not approved by the finance provider.
It is important to remember that any alterations to a leased vehicle should be discussed with the finance provider before making any changes to the vehicle. This can help to avoid any potential issues or penalties when returning the vehicle at the end of the lease term.
Should you require further assistance or simply want to chat through your options, don’t hesitate to contact us. You can get in touch by dropping us a message or calling us directly on 01424 863456 today. We’re committed to helping you and are always pleased to offer our assistance.
