CVC offers various van leasing and car leasing options to satisfy every business' needs, requirements, and circumstances.
If you don't want to become the owner of the van once the lease period is up, then the Business Contract Hire (BCH) or Finance Lease (FL) are your options. With both van lease contracts, you agree on lease terms (duration and mileage) and pay the initial rental followed by equal monthly rentals for the duration of the agreement. If you choose Finance Lease, you will also have to agree on a final payment (balloon payment) that will be paid from the proceeds of the sale of the vehicle to a third party. Van contract hire is more popular when it comes to van leasing as it offers a simple and hassle-free solution but with FL you might be able to keep some of the money raised from the van sale! Want to know more? Click below.
BUSINESS CONTRACT HIRE VS FINANCE LEASE
A Business Hire Purchase or Business Contract Purchase may be the best option if you don't like the idea of returning the van at the end of your agreement.
With Business Hire Purchase you will pay the deposit and spread the remaining cost of the van over the contract term. The van is yours after the final payment is made (you might have to pay a small purchase fee, usually £100-£200). A Business Contract Purchase (BCP) operates in a similar manner, but becoming the owner of the van is optional. Unlike Business Hire Purchase, a Business Contract Purchase doesn't pay off the whole value of the vehicle so you are not the owner of the van until the Guaranteed Future Minimum Value (agreed upon before you signed the contract) is paid. You can also return the van to the funder - just be aware that if you choose to do this, excess mileage charges will apply if you go over your agreed limit.
BUSINESS HIRE PURCHASE BUSINESS CONTRACT PURCHASE
Please contact us if you need help choosing the right lease product for your business van lease.