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Site Help
- How to obtain quotes for a new van?
- How do I proceed with a quote?
- Abbreviations.
- Glossary of terms.
- Finance Options Explained
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Outright Purchase
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Hire Purchase
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Lease Purchase
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Contract Purchase
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Financed Lease
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Contract Hire/Lease.
- Is there More we can do to help you?
You can obtain quotes in several ways.
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Instant Quote
to search for a suitable van if you know the van you want.
Select the Make, Model and Trim from the drop down menus. This will take
you straight to the details page. If you are sure this is the van spec
you require you can obtain new van quotes with the
button, or get financed quotes with  .
-
choose a Model Type
. Using this option enables you to view all of the selected models of this
type and then view the details or quotes from the results presented.
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Find a Van
if you are not completely sure of which van you want. To search for a suitable van
just select the features that are important to you. There is a running
count shown, which enables you to reduce the number of contenders.
Once happy you can use the
 button to
display the selection. From the results page you can either view the
Van Details or obtain quotes as before.
When the quotes are displayed you can contact the retailer by clicking on the
retailer's name. This will bring up a pro forma EMAIL for you to fill in.
You can supply a phone number if you wish the Retailer to contact you directly.
Alternatively the retailer can reply by email with their contact details.
Remember that while we take care to vet retailers to ensure they are reputable,
you should still take the normal precautions before parting with money or
information. In the event of any problems with retailers please let us know
in case they are breaking their terms and conditions. (contact
us)
| Abbreviation |
Explanation |
| a/c |
Air Conditioning (van options) |
| r/c |
Radio Cassette (van options) |
| APR |
Annual Percentage Rate (New vehicle quotes) |
| P.O.A. |
Price on Application. Sometimes used when Retailers do not
wish to reveal their prices to competitors, or they have bulk
Discounts. |
| Term |
Explanation |
|
Allowable VAT |
When obtaining a van with Contract Hire or finance leasing that is also used
for personal use, you can only claim back half the VAT portion of the
rental. The VAT portion of the maintenance of the vehicle is allowable. |
|
Annual percentage rate |
The interest rate charged for a Hire Purchase. The lower the value the
cheaper the loan. However you should always compare the total costs for the
period you are buying over |
|
Balloon Payment |
This is the final end payment on a lease purchase or Personal Contract
Purchase. It is often used to reduce the monthly costs. Also called a Final
Payment. |
|
Depreciation |
The amount your vehicle value loses from new. Usually expressed as an
amount per year. |
|
Disallowable VAT |
Half the VAT of the rental is disallowed if the van is also used for
personal use. |
|
Excess mileage charge |
This is the amount charged per mile for each excess mile in a contract hire
or lease agreement. |
|
Final Payment |
This is the final end payment on a lease purchase or Personal Contract
Purchase. It is often used to reduce the monthly costs. Also called a
Balloon Payment. |
|
Guaranteed Minimum Final Value |
Sometimes negotiated as part of a finance agreement it allows a consistent
and guaranteed agreement. |
|
Off Balance Sheet |
Funding for a lease or Contract hire does not show the van as an asset on
the balance sheet. The cost can therefore in most circumstances be used to
reduce tax. |
|
Payload |
Payload is the weight that can be safely carried by the vehicle. Some
“Payload” figures also include the weight of the vehicle. Wherever possible
we have subtracted the vehicles weight to give the true payload. (van
specification) |
|
Pre-Registered Vehicles |
A pre registered vehicle has usually been purchased to obtain a bulk
discount or dealer bonus. It is pre registered to increase the
manufacturers/dealers sales figures. These vans normally have zero mileage
and are sold at a discount. The disadvantages are that the warranty and age
start from the date of registration. Also you become the second registered
keeper. |
|
RFL |
Road Fund Licence |
Finance Explained
There are several ways to finance your new van. The choice will depend on
your personal preferences and ability to take advantage of tax breaks. If
you choose one of the first four options you will eventually own the vehicle.
·
Outright Purchase
·
Hire Purchase
·
Lease Purchase
·
Contract Purchase
·
Financed Lease
·
Contract Hire.
NB. While we have tried to outline the major benefits and disadvantages of
each option, you
should always take expert advice on the tax or finance implications, and understand the Retailers
particular deal, as these will often vary.
This is the most straightforward way of purchasing your new van. Normally
involves placing a small deposit with the Retailer and the balance on delivery.
·
Advantages of outright purchase.
- No restrictions on mileage or usage.
- You will probably obtain a better discount.
- VAT recoverable if you are VAT registered.
- Vehicle is an asset on your balance sheet and benefits from capital allowances
offset of against tax.
·
Disadvantages of outright purchase
- Large initial capital outlay
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Hire purchase involves paying a deposit and a number of monthly repayments
(usually over 3 years).
- Advantages of ‘Hire Purchase’.
- You will own vehicle after final payment.
- Low initial outlay. (Usually VAT element)
- No restrictions on mileage or usage.
- Fixed monthly repayment aids budgetary control and cash flow
- VAT deposit is reclaimable if you are VAT registered.
- 100% of interest charges can be offset against taxable profits
- Vehicle is an asset on your balance sheet and benefits from Capital allowances
offset against tax.
·
Disadvantages of ‘Hire Purchase’
- You can lose vehicle if payments are not met.
- May cost more in longer term
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Lease purchase involves paying a deposit (sometimes optional), a number of monthly repayments
and a terminal payment.
- Advantages of ‘Lease Purchase’.
- You will own vehicle after final payment.
- Low initial outlay. (Usually VAT element).
- Fixed monthly repayment aids budgetary control and cash flow.
- 100% of interest charges can be offset against taxable profits.
- Maintenance contracts can often be arranged.
- Vehicle is an asset on your balance sheet and benefits from
Capital allowances.
·
Disadvantages of ‘Lease Purchase’.
- You can lose vehicle if payments are not met.
- May cost more in longer term.
- If your circumstances change the final payment may be a shock.
- If the value of the vehicle drops more than expected your final payment may be
higher.
- The final value of the vehicle depends on the mileage you agree initially.
Back to Top
Contract purchase involves paying a deposit and a number of monthly repayments.
Some contracts offer the choice of ownership after payment of a terminal
payment.
- Advantages of ‘Contract Purchase’.
- You may own vehicle after final payment.
- Low initial outlay. Between zero and 6 months payments.
- Fixed monthly repayment aids budgetary control and cash flow
- 100% of interest charges can be offset against taxable profits
- The lease company takes any depreciation risk, if you sell the vehicle at
the end of the contract.
- Vehicle may be an asset on your balance sheet and you could benefit from
Capital allowances.
·
Disadvantages of ‘Contract Purchase’
- You can lose vehicle if payments are not met.
- May cost more in longer term.
- If your circumstances change the final payment may be a shock.
- Mileage is agreed as part of the contract.
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There is usually a deposit followed by monthly repayments and possibly a
final (balloon) payment.
- Advantages of ‘Finance Lease’.
- VAT is paid monthly, then claimed back quarterly if you are VAT registered.
- Rentals are 100% allowable against taxable profits.
- No mileage restrictions.
- Monthly payments are kept low.
- Disadvantages of ‘Finance Lease’.
- Balloon or terminal payments may come as a nasty shock.
Back to Top
You effectively rent the van and agree to restrict use to an agreed annual
mileage. At the end of the hire you hand the van back.
- Advantages of ‘Contract Hire’.
- Peace of mind. Maintenance is generally included in the price.
- Rentals are 100% allowable against taxable profits.
- Fixed payments to aid cash flow and budgeting.
- Disadvantages of ‘Contract Hire’.
- Van is never yours.
- Exceeding the annual mileage can be costly.
- Depending on the condition of the van at the end of the contract you may be
required to pay any repair costs.
- Useful for large fleets who are VAT registered.
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Please let us know if there are ways we can improve our website or provide a
better service.
(contact
us)
Whilst we endeavour to ensure that the information on
this site is accurate and complete, we can not accept any liability arising from
any inaccuracy or omission in the information on this site. We advise you to
verify the accuracy of any information with the Retailer or your advisor.
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