Our Finance Options

If you have a query about leasing a van, please have a read over the points below. If you don’t find what you are looking for, please give us a call and we will be happy to walk though any additional queries you have.

Finance Options

Finance Lease

Finance Lease is ideal for customers who want the benefit of running a van with a low initial outlay followed by a low monthly rental. You simply have to agree an initial rental amount. This can be as little as your first months rental.

Then you agree a monthly rental and contract period, which can include an acceptable final rental, often called a “Balloon” or “Terminal Rental”. This will have the effect of keeping your monthly rentals to a minimum.


There is also an option called a full payout Finance Lease, this is simply a Lease with NO “Balloon” or “Terminal Rental” payment at the contract end.

What are the options at the contract end?

  • Part exchange the van back to Vehicles 4 Business, This is the most common option and the principal behind a lease agreement. We use the value of your van and offset this against the “Balloon” or “Terminal Rental” using the vans equity to pay off the “Balloon” or “Terminal Rental”. This option will free you up to arrange a new Finance Lease Contract.
  • Pay off the “Balloon” or “Terminal Rental” and continue to use the van entering into a secondary term.

What are the benefits?

  • The monthly rentals paid can be offset 100% against your pre-tax profits making it one of the most tax efficient ways of acquiring your new van.
  • Our Business approach is to ensure our advice is clear fair and not misleading.We aim at Vehicles 4 Business to give you honest, unbiased advice. Below we have listed for you the advantages and disadvantages of Finance Lease.


  • Minimum capital expenditure
  • Accurate monthly budgeting
  • No damage recharge as you are responsible for disposal of the vehicle
  • Finance lease is a very popular choice for VAT registered companies and businesses as they can claim back 50% of the VAT on the finance element for cars and generally 100% for commercials (subject to no private use). On contracts with maintenance the service element VAT is 100% recoverable
  • Reduced administration
  • On-going advice and support
  • Optional full maintenance package with breakdown rescue cover


  • You will never own the vehicle as the vehicle must be sold to a third party as the end of the agreement
  • Operating risk associated with the vehicle
  • Interest rates can vary on some contract
  • You must have fully comprehensive vehicle insurance

Contract Hire

Another popular choice for VAT – registered and non VAT – registered companies that want minimum outlay and maximum control of costs, especially when the maintenance and relief vehicle options can be included. With this VAT – beneficial financing package, one regular rental payment covers all risks, including costs of depreciation and disposal, for an agreed period of time and mileage. Road Fund License is included, but roadside rescue, maintenance and relief vehicle provision are options that can be added and changed to the monthly rental.

If your company leases a vehicle on a contract hire basis, you will pay to rent the vehicle in monthly instalments for a contract of 24 or 48 months, for example. Once the contract is up, the vehicle is returned to the leasing provider, leaving them to worry about depreciation values and disposal of the car or van.


Contract hire means your company can concentrate on its core activities, while avoiding the financial risk and administrative burden of owning your vehicle or fleet.


  • Minimum capital expenditure
  • Accurate monthly budgeting
  • Improved cash flow
  • Fixed interest rates
  • Reduced administration
  • On-going advice and support
  • Road Fund Licence provided (vehicle excise duty paid) for duration of contract
  • Optional maintenance package
  • Optional breakdown rescue cover
  • Optional replacement vehicle cover in event of breakdown


  • Early termination can be expensive
  • If you do more miles than stated in your contract you will be charged excess mileage for each mile over that stated in your contract
  • You must look after the vehicle and return it in a well maintained condition otherwise you will be charged for any damage over and above that stated in the ‘Fair Wear and Tear Guide’
  • You must have fully comprehensive vehicle insurance
  • You will never own the vehicle as there is no option to buy it

Hire Purchase

Hire Purchase is a finance contract that hires a van to you for the term you agree, where upon completion of all the payments within the contract allows you to take ownership of the vehicle.

Hire Purchase does not allow you to defer any amount to a final lump sum payment. There are finance products available that allow you to do this, please ask for further details.


Finance rates for Hire Purchase varies from lender to lender, but once agreed the rate remains fixed for the agreed contract term.

What deposit do I need and how does it work?

Hire Purchase providers will expect the VAT element of the purchase price along with an agreed additional amount when purchasing a commercial vehicle. For cars the amount is simply a lump sum, this can vary from lender to lender but 10% of the purchase price is usually a fair guide.


Repayments can be spread over any number of months usually between the range of 24 to 60 months. More commonly contracts are written on either 24,36,48 or 60 months terms.


Hire Purchase providers charge fees for their services, this is normally referred to as an initial upfront fee that is generally payable with the deposit and an option to purchase fee, generally payable with the final payment.


Hire and Lease Purchase are accounted for as assets to your business therefore they appear on your balance sheet.


  • Ownership at the end of the contract.
  • Fixed interest rates
  • Monthly payments are not subject to VAT.
  • No damage or excess mileage recharges at the end of the agreement.
  • Budget control with the final payment / balloon facility. Ownership passes once final payment has been made in full.


  • You are liable for the full value of the vehicle, you can’t hand back the vehicle.
  • For LCV (Light commercial vehicle) you must pay the full VAT amount upfront.
  • You must have full comprehensive insurance
  • If a mileage has been used to calculate a final rental, exceeding the mileage could result in a financial shortfall at the end of the contract.
bnp paribas
Close Brothers
Haydock Finance
Metro Bank
Vehicles 4 Business Ltd is registered in England and Wales. Registered Number – 666886. Registered Office and Trading Address: Unit 10 Peaks Place, Bolton, BL1 8AS. Authorised and regulated by the Financial Conduct Authority. Vehicles 4 Business Ltd are a credit broker not a lender.
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