When looking at different options for your van long term. Not only do you need to look at the different types of vans on offer, but you need to look into the different finance options or leasing options you have available. Looking into the different options is not always going to be so clear-cut; you need to see what fits within your budget and what works over the period you have.
Seeing the price offered for the lease or finance option you are looking at is not the end of the choices. You need to look into what this covers. If you are leasing, does this cover the mileage you will do, or does this cover any extra insurance for damage, or do you need to take out a separate policy?
Leasing or Finance?
It is also worth weighing up whether you want to lease a van long-term or if you want to purchase it through a finance option.
When looking at a lease option, there are again two different options, there are renting options, which are like a long-term hire, and you can also do a lease finance option, where you will own the vehicle at the end, unlike the long-term hire or lease options available.
Swiss van leasing offers 2 different types of hire or lease on their vans. This is a 3-month lease or a 12-month lease. This, like other leasing options from different companies, requires a damages deposit. This must be paid by card and in the name of the person taking out the hire. You can add extra people into the hire agreement to drive the van, so long as they are over the age of 25, for an additional daily cost. It can be cheaper to book online via the website.
You can get a no-obligation quote from Swissvans by visiting their website. Where you can find all of the information you need to decide if leasing is for you. Long-term leasing or renting can be beneficial as it does not always require a credit check.
You will be liable during a rent/lease option for additional mileage that you use above your contracted use, and you will also be given a penalty charge if the van you are leasing is damaged when you return it.
If you take out a lease or rent a vehicle with no finance option, you will have a daily charge. If you see that the time you have chosen to lease the vehicle for is needing to be extended, you can simply ring the company, in this example, Swiss Van leasing and look into extending how long you can have the van. If the van you are using is not available, they will be able to discuss your options with you.
When looking into a finance lease option, you will not need to pay a damages deposit, but you will have to pay a 10% deposit for the van at the start of your finance lease agreement. Also, unlike a long-term rent or lease van, you will be subject to a credit check to ensure your finance agreement is suitable for your credit level. If this is not the case, most companies will discuss the options you have available to you.
When you have a finance lease on your chosen van, you will not have an additional mileage charge at the end of your contract you. also, you will not have to pay for any damages once you have paid the final amount owed on your van. An example of a lease finance agreement is you pay a charge as if you were leasing the vehicle for 3 years and then pay the remaining balance for the van at the end of the contract. This is when you will officially own the vehicle.
The main difference between the two different types of a lease is at the end of a finance lease, you own the van, and at the end of a non-fiance lease, you do not.
As previously mentioned, you can finance lease a van, but you can also just arrange to purchase the van you have chosen from the fantastic range available through Swiss van leasing on their finance options.
When looking into the finance option, your deposit is the VAT only; you will, however, be subject to a credit check. You can also settle early, this is also an option available on a lease finance option. If you wish to purchase a fantastic custom van outright, you can do this also.
When choosing to finance the purchase of a van, you will not be subject to mileage restrictions or additional charges for mileage at the end of your contract. You also will not be subject to any additional charges for any damage caused to the van during your contract. You can also choose to either pay over the agreed time, whether this is 3 or 5 years, which will be agreed upon with the finance company. You can choose to keep your monthly payments down and pay a larger sum at the end of the contract for the purchase of the van. This would be beneficial if you were just starting a business and needed to keep starting costs down but knew that you could either pay extra through your contract or pay for the remainder of the van cost at the end of your agreed term.
Both types of finance and lease have their benefits. If you need a van to get started but do not have the best credit but can pay in cash and know you make the payments after the initial deposit, a long-term hire would be a fantastic option, But if you are already a business with a customer base a finance lease or a fiance agreement to purchase a custom van would be more beneficial and more flexible to fit within your business needs and finances.
Different businesses will also have different needs. If you are a delivery company, you will always need a van, so a finance option may be better for your company. However, if you are a decorating or cleaning company, you may only need a van when you have a big job or in situations where you are helping move house or doing a house clean.