We’ll arrange your finance, quickly and hassle free! Call this month as 3.1% flat rates available
Totally Vans has been working hard on your behalf, negotiating with most of the major finance companies, forging deals so we can offer our customers the best finance deals for their commercial vehicles. We can offer tailor made finance solutions to suit your needs and budget at the most competitive rates on the market.
No matter if you are an individual looking to fund one vehicles or a company funding the purchase of several vehicles, we can advise you of the best and most tax efficient method of funding your new vehicles from Hire Purchase, Finance Lease, Finance Purchase or Contract Hire.
Call us today to discuss your finance requirements for your new vehicle.
What’s the difference between Hire Purchase, Finance Lease and Contract Hire?
|Van Hire Purchase||Van Finance Lease||Van Contract Hire|
|Deposit||All VAT + Road Tax + 1st Registration Fee as deposit||3 x monthly payments + the VAT on the payments as deposit||3 x monthly payments + the VAT on the payments as deposit|
|Term||24-60 months||24-60 months||24-60 months|
|Vat||VAT is reclaimable if VAT registered||VAT is reclaimable if VAT registered||VAT is reclaimable if VAT registered|
|Tax deductable||Interest charges can be offset against your taxable profits||Monthly payments are 100% deductible against taxable profits||Monthly payments are 100% deductible against taxable profits|
|Balloon payment||You can reduce your monthly payments with a deferred or ‘final balloon’ payment based on the resale value of the van at the end of the term aiding cash flow|
|Mileage restrictions||No mileage restrictions or condition penalties apply||The contract is mileage sensitive and there are charges for excessive mileage|
|Who owns vehicle at the end?||You own the vehicle at the end of the term||At the end of the contract, simply hand the vehicle back|
How to calculate who is offering the best finance deal:
Finance offers can be very confusing. Some offer low or no deposit, the balloon payment (the final payment due at the end of the lease) can be higher or lower than another offer and the term of the lease can be anything from 12 to 60 months. Most vehicle suppliers including ourselves advertise the keenest monthly rate as this is what most people see initially. But don’t be drawn in just by the monthly figure and beware of unrealastic balloon payments!
Our finance lease rates are more than often displayed as 60 month or 5 year deals. This is because all other suppliers do the same and if we were to advertise a three year deal for the same vehicle, at first glance it would make us look uncompetitive and often deter you from looking any further. Another trick of the trade is to add high balloon payments to reduce the monthly figure, but buyers beware!
We always set a balloon payment at a realistic price so when you are at the end of the term, you can sell the vehicle at market value and have enough funds to settle the finance balloon, provided it has been reasonably maintained of course. Alternatively at the end of the lease you may have a balloon payment of £6,500 for example to settle when the vehicle is only realistically worth £4,500….you need to find another £2000 before you can even start looking for a new vehicle.
The quickest way to calculate who is offering the best like for like deal is to multiply the monthly payment figure by the term (i.e. 60 months would be typically be 59 payments, but not necessarily) then add the deposit and the balloon payment for a total figure.
Which would you go for?
Deal A: ZERO DEPOSIT & ONLY £209 p.m OR
Deal B: £1274.94 DEPOSIT & £212 p.m
The answer is Deal B…………….WHY? – Look at the details of the deal to know what you are getting into NOT JUST THE HEADLINE RATE!
|Deal A (details)||Deal B (details)|
|Deposit: £0||Deposit: £1274.94|
|Monthly Payment: £209.00||Monthly Payment: £212.00|
|Balloon Payment: £6495.50||Balloon Payment: £4366.20|
|Term: 60 months||Term: 60 months (60 month = 5 years – usually 59 payments)|
Work it out yourself!
Term x Monthly = Subtotal + Deposit + Balloon = Total Paid
Deal A: 59 x £209.00 = £12,331 + £0.00 + £6495.50 = £18,826.50
Deal B: 59 x £212.00 = £12,508 + £1274.95 + £4,366.20 = £18,149.15
Deal B not only saves you £677.35 in hard cash over the 5 years but your vehicle may only be worth £4,500 after 5 years which means you have to find almost £2000 to pay off the finance balloon with Deal A.