Van Contract Hire and Leasing: Here’s What You Need to Know!

Does your company need a van? Are you self-employed and need a van as part of your business? If so, you may have considered a number of different options for financing. There are many and all have their own advantages. Some have some significant disadvantages. Below you’ll find what you need to know about van contract hire and leasing.

Van Contract Hire 

Many people do not want to pay for a van in full. Others may not qualify for traditional financing. Some only need the van for a short period of time. Van contract hire is the answer to their needs. You will pay a set fee each month for a designated period of time. In most cases, this will be from one to five years. It’s a little different from leasing. With leasing, you have depreciation costs added into your monthly payment. This is not the case with a van contract hire.

Most companies will also provide service or maintenance for the hired van. Some will even replace tires. When you lease a vehicle, all the repair expenses are your responsibility. The only time this may be different is if the repair is covered under the vehicle’s existing warranty.

One of the most beneficial parts of van contract hire is for those that are self-employed and businesses. This is because much of the cost of the van contract hire and leasing are deductible. Even if you were to use the van for some of your own personal use, you will still be able to reclaim much of the cost. Check with your tax professional for more information.

Many individuals and businesses want to add a single vehicle to their fleet. However, they may not have the funds available to do so by purchasing a van. This option might allow you to add a van that has more options and features than what you would be able to afford when purchasing a vehicle outright.

When the contract hire term is up, you have the choice of several different options. You may return the van. You may buy the van for a set price. This is usually far below market value. You may want to turn it back in and get a different model. You can also renew the contract hire for another set period of time.

Which Van Contract Hire and Leasing Company Is Best for You? 

You will need to do a little shopping around before you make your decision. Not all van contract hire and leasing companies offer the same makes, models, and prices. You want the best you can get for the money! Ask around and see who comes highly recommended. You can also check on the internet to see which companies have positive reviews from actual customers. It is certainly in your best interest to get a great deal.

A Final Thought 

Reliable transportation is a must, no matter if it is for you as an individual or as a business entity. You don’t want to pay more than is necessary, but you also don’t want to end up with a van that’s always out of service. A few questions now can save you a lot of headaches later on.