The Benefits of Finance Lease for Buying a New Van
Finance leasing is a popular financing option for businesses looking to acquire new assets without the upfront costs and commitment of traditional lending. With finance leasing, businesses can enjoy a range of benefits, including flexibility, cost savings, and tax advantages.
When it comes to buying a new van, finance lease can be a great option to consider. Here are some of the benefits that finance lease offers when it comes to purchasing a new van:
- No mileage restrictions: There are no restrictions on the amount of mileage you can put on your van. You can use your van for trips as you need without worrying about incurring extra costs.
- Flexible initial deposit: You have the option to choose the amount of your initial deposit.
- Fixed monthly payments: Your monthly payments are fixed, which means that you can plan your budget.
- Reclaim VAT on the payments: If your business is VAT registered, you can reclaim the VAT on your finance lease payments reducing the overall cost of the lease.
- Agreement terms of up to 60 months: You can choose an agreement term of up to 60 months. This means that you can choose a term that works best for your business and your budget.
- Rentals are 100% tax allowable: With finance lease, your rentals are 100% tax allowable, finance leasing can provide an additional source of tax savings.
- Available with or without a balloon option: Finance leases also offer the option of a balloon payment, which can help businesses lower their monthly payments while still retaining the option to purchase the leased asset at the end of the agreement.
- Early settlement and Renewal options: Finance leasing offers early settlement and renewal options, giving businesses the flexibility to change or end their leasing agreement as needs evolve
- Retain 100% equity from sale: With finance lease, you can retain up to 100% equity from the sale of your van.
- Part exchange equity can be used as a deposit: You can use the equity from your part exchange van (or car) as a deposit on your new van. This means that you can use the equity from your old van to help finance your new van purchase.
Overall, finance lease offers a number of benefits for buying a new van. From flexible initial deposits and fixed monthly payments to the option to reclaim VAT and use part exchange equity as a deposit, finance lease can help make your van purchase more affordable and manageable.