[LWC]

Does anyone do it here...can anyone explain it to me how it works, wheres best to go etc?

I know very little about it. Thanks in advance

[keyser soze]

i think they prefer you to be vat registered

[LWC]

thanks... lol

[keyser soze]

i found a place that leases vans today ,and you dont have to be vat registered ... expensive though.... volkswagon transporter 420 per month inc vat over a 3 yr contract.    ok if you earn loads and its all tax deductable

[KS Cleaning]

Does anyone do it here...can anyone explain it to me how it works, wheres best to go etc?

I know very little about it. Thanks in advance

Window Man Chris seemed to have this subject covered and some more! Av no seen any of his contradictory posts on here fir a wee while now tho, think he got rumbled

[deeege]

Does anyone do it here...can anyone explain it to me how it works, wheres best to go etc?

I know very little about it. Thanks in advance

Window Man Chris seemed to have this subject covered and some more! Av no seen any of his contradictory posts on here fir a wee while now tho, think he got rumbled

Maybe he's having a wee holiday? Or has gone out tonight for a nice wee meal? Or is a wee bit too busy to use the forums!

[KS Cleaning]

Does anyone do it here...can anyone explain it to me how it works, wheres best to go etc?

I know very little about it. Thanks in advance

Window Man Chris seemed to have this subject covered and some more! Av no seen any of his contradictory posts on here fir a wee while now tho, think he got rumbled

Maybe he's having a wee holiday? Or has gone out tonight for a nice wee meal? Or is a wee bit too busy to use the forums!

Maybe he is! But if the OP is lookin for some info he might want to look up Window Man Chris' posts on the subject matter.

[LWC]

Any links? Obviously not getting an answer to my question so I might aswell have a laugh about this window man chris

[robert mitchell]

Van Contract Hire

Contract Hire is definitely worthy of consideration if the use of a van for a fixed period of time is more important to you than ownership.
Low deposit typically equivalent to three monthly payments
Choice of contract period from 24 to 60 months
Option to include a full maintenance package
Tax efficient as monthly repayments can be offset against taxable profits
No worries about depreciation
If you're VAT registered, claim back all of the VAT on your monthly payments

Van Finance Lease

Finance Lease provides you with the benefit of owning your van whilst building up equity over a period of 2-5 years.
100% tax deductible monthly payments
Reclaim up to 100% of the VAT if you're VAT registered
Low deposit and low monthly payments
Optional final payment
Equity at the end of the agreement
Unlike Contract Hire, no strict mileage or damage penalties

Van Lease Purchase

If ownership is a priority then this is a cost-effective route to purchasing your vehicle over a pre-agreed term of between 2-5 years.
Ownership of the van at the end of the agreement
Final payment thereby reducing your monthly payments
Payments are not subject to VAT
Capital cost of the van can be written-down utilising the standard writing-down allowances, unless using the Annual Investment Allowance (AIA)
Low initial deposit with fixed monthly payments
Interest reclaimable against tax




Aprt from finance lease the cost can vary hugely depending on mileage and whether you have a balloon payment at the end.

[Spruce]

Does anyone do it here...can anyone explain it to me how it works, wheres best to go etc?

I know very little about it. Thanks in advance

First question we would ask in the trade is why you want to know this.

In general, most small operators who asked about leasing had a poor credit history, ccj's etc. and thought that no credit checks were made with leasing deals and an easy way of getting a new van.
Because credit checks are made, the majority of applications from small businesses, ie., sole traders were rejected, especially when the last 6 months of bank statements didn't tally with their 'healthy' business state indicated on the application form.

Others felt that they could own a van with a very small initial deposit and others where drawn in by the small weekly rental advertised all over the van on the forecourt or both.

I certainly am not inferring that this is the case with you, it was just our general experience.

IMHO vehicle finance in whatever form isn't in your favour, its in the bank/finance house's favour. You will never get something for nothing.

Contract Hire/Leasing deals are primarily put together using the same criteria.

A balloon at the end of the contract is a way of reducing your monthly payments, but it will put pressure on you if you haven't the money saved up to pay it off. This will mean having to take out another loan to cover it. So your new van may end up to be 7 or 8 years old before you finish paying for it. Remember, the older your van is the harder it is to get back to owning a new one again, so we found it best to replace your van every 3 years or slightly earlier if you have a residual payment at the end.

Whilst everyone is different, sole traders don't generally 'warm' to the concept of paying a monthly rental out for a van for 3 or 4 years and at the end of the contract hand it back with nothing to show for it. I don't see the problem to be honest, because its depreciation in a different form.

Personally, I have a van that I own. I don't owe anything on it. If I can't work for some reason, then I don't have a monthly van rental to add to my worries. My van was worth £5000 3 years ago and probably worth £1500 today tops. That's depreciation.

[G.W.C]

Spruce do you have an email address i can contact you on mate?thanks

[KS Cleaning]

Any links? Obviously not getting an answer to my question so I might aswell have a laugh about this window man chris

If you look up his previous posts there will be something there about leasing, i'm sure he used northgate. It was more the way he claimed he insured the van that raised a few eyebrows.

[Spruce]

Spruce do you have an email address i can contact you on mate?thanks

email address on my profile - I'll look for it amongst the thousands of spam emails I now receive on this email address.

[PoleKing]

I'm not sure on the terminology but...
I had c. £20k to spend on a new van.
After much searching I found what I wanted.
Renault Trafic. I forget the cash price, but it was much less than £20k.
Chatting to the sales guy I got 'sold' to.
Pleased with being sold to though.
Px my old van, they have me £2k-more than fair.
Used that as the deposit.
Long and short I pay £250 a month. 60 payments.
£15k total + £2k for my old van.
This worked out, on average, that I pay £17 per month for the finance.
Which means its cost me a grand to finance it.
But, after a few difficult years a while back, I had a 'cushion' on £20k just in case.

I can see the benefit of leasing but it's not for me.
If something goes wrong and I can't afford to make the payments, I've still got the money sitting in the bank.
If I want to sell the van-I can.
I drive it nicely, cause it's mine.
Ask yourself, if you've ever had a hire car or van, how did you drive it?
I wasn't careful. Not as much as I am with my own.

OP-if you're driving something now I assume you own, see about chopping it in-bet you get £2k-seems to be a standard price...
Then how much more would it cost to own the van at the end compared to paying £x each month then giving it back?
I'd bet it ain't much different.

[Richard iSparkle]

i am a sole trader and not VAT registered and have leased from the start from

http://www.nationwidevehiclecontracts.co.uk/

it means i got a new reliable vehicle for min cost upfront and then could invest the money saved into building up a business.

the money i can invest into advertising each month will earn me more than money saved on purchasing.  this is the theory.  it is how big business tend to do things so their cash is not tied up in depreciating liabilities.

[Spruce]

I'm not sure on the terminology but...
I had c. £20k to spend on a new van.
After much searching I found what I wanted.
Renault Trafic. I forget the cash price, but it was much less than £20k.
Chatting to the sales guy I got 'sold' to.
Pleased with being sold to though.
Px my old van, they have me £2k-more than fair.
Used that as the deposit.
Long and short I pay £250 a month. 60 payments.
£15k total + £2k for my old van.
This worked out, on average, that I pay £17 per month for the finance.
Which means its cost me a grand to finance it.
But, after a few difficult years a while back, I had a 'cushion' on £20k just in case.

I can see the benefit of leasing but it's not for me.
If something goes wrong and I can't afford to make the payments, I've still got the money sitting in the bank.
If I want to sell the van-I can.
I drive it nicely, cause it's mine.
Ask yourself, if you've ever had a hire car or van, how did you drive it?
I wasn't careful. Not as much as I am with my own.

OP-if you're driving something now I assume you own, see about chopping it in-bet you get £2k-seems to be a standard price...
Then how much more would it cost to own the van at the end compared to paying £x each month then giving it back?
I'd bet it ain't much different.

If you have a van on HP registered in your name and you fall on hard times, you still have to be very careful about selling it. It isn't yours to sell even if it's in your name. You have to have settled the finance before the transfer to the new buyer can take place - not quite as easy as it sounds.

If you have a van on lease you can still cancel the contract, but its expensive. The newer the contract the more expensive the penalty.

Financing a van or any equipment for that matter by a sole trader is a potential for major drama, but thankfully most finance contracts are completed without too much hassle. Breaking a leg or arm can take months to heal and with no income and no safety net, things can become very difficult financially.

 

[Spruce]

i am a sole trader and not VAT registered and have leased from the start from

http://www.nationwidevehiclecontracts.co.uk/

it means i got a new reliable vehicle for min cost upfront and then could invest the money saved into building up a business.

the money i can invest into advertising each month will earn me more than money saved on purchasing.  this is the theory.  it is how big business tend to do things so their cash is not tied up in depreciating liabilities.

You make a good point. You view your van as a tool to running a successful progressive business. No matter what the majority say, they don't view their van in the same way as you do. They still see a van as an extension of their masculinity – perhaps more so with 4 x 4 owners.

Accountants have the term for a vehicle as a 'depreciating asset' - which doesn't make sense actually as most things that depreciate are a liability. No matter how your vehicle is financed, it still depreciates. We would see a lease/contract hire deal as financing a depreciating asset plus a cut for the finance house and the government. The only difference between the different finance deals is who has the risk, you (HP, Finance Lease) or the finance house (Contract Hire).

We found that large companies also used to spread their risk as well. Some vehicles were paid for directly from the profit and loss account, others were financed and others were leased. The accountant was generally the one to decide how each vehicle would be financed and it depended on how the business was performing at that moment in time.

[PoleKing]

I'm not sure on the terminology but...
I had c. £20k to spend on a new van.
After much searching I found what I wanted.
Renault Trafic. I forget the cash price, but it was much less than £20k.
Chatting to the sales guy I got 'sold' to.
Pleased with being sold to though.
Px my old van, they have me £2k-more than fair.
Used that as the deposit.
Long and short I pay £250 a month. 60 payments.
£15k total + £2k for my old van.
This worked out, on average, that I pay £17 per month for the finance.
Which means its cost me a grand to finance it.
But, after a few difficult years a while back, I had a 'cushion' on £20k just in case.

I can see the benefit of leasing but it's not for me.
If something goes wrong and I can't afford to make the payments, I've still got the money sitting in the bank.
If I want to sell the van-I can.
I drive it nicely, cause it's mine.
Ask yourself, if you've ever had a hire car or van, how did you drive it?
I wasn't careful. Not as much as I am with my own.

OP-if you're driving something now I assume you own, see about chopping it in-bet you get £2k-seems to be a standard price...
Then how much more would it cost to own the van at the end compared to paying £x each month then giving it back?
I'd bet it ain't much different.

If you have a van on HP registered in your name and you fall on hard times, you still have to be very careful about selling it. It isn't yours to sell even if it's in your name. You have to have settled the finance before the transfer to the new buyer can take place - not quite as easy as it sounds.

If you have a van on lease you can still cancel the contract, but its expensive. The newer the contract the more expensive the penalty.

Financing a van or any equipment for that matter by a sole trader is a potential for major drama, but thankfully most finance contracts are completed without too much hassle. Breaking a leg or arm can take months to heal and with no income and no safety net, things can become very difficult financially.

 

$ still in the bank for me spruce.
Get what you mean though.

[KS Cleaning]

I'm not sure on the terminology but...
I had c. £20k to spend on a new van.
After much searching I found what I wanted.
Renault Trafic. I forget the cash price, but it was much less than £20k.
Chatting to the sales guy I got 'sold' to.
Pleased with being sold to though.
Px my old van, they have me £2k-more than fair.
Used that as the deposit.
Long and short I pay £250 a month. 60 payments.
£15k total + £2k for my old van.
This worked out, on average, that I pay £17 per month for the finance.
Which means its cost me a grand to finance it.
But, after a few difficult years a while back, I had a 'cushion' on £20k just in case.

I can see the benefit of leasing but it's not for me.
If something goes wrong and I can't afford to make the payments, I've still got the money sitting in the bank.
If I want to sell the van-I can.
I drive it nicely, cause it's mine.
Ask yourself, if you've ever had a hire car or van, how did you drive it?
I wasn't careful. Not as much as I am with my own.

OP-if you're driving something now I assume you own, see about chopping it in-bet you get £2k-seems to be a standard price...
Then how much more would it cost to own the van at the end compared to paying £x each month then giving it back?
I'd bet it ain't much different.

Sorry DD but how do you work out you pay £17 per month interest if you can't remember the cash price?

[PoleKing]

I'm not sure on the terminology but...
I had c. £20k to spend on a new van.
After much searching I found what I wanted.
Renault Trafic. I forget the cash price, but it was much less than £20k.
Chatting to the sales guy I got 'sold' to.
Pleased with being sold to though.
Px my old van, they have me £2k-more than fair.
Used that as the deposit.
Long and short I pay £250 a month. 60 payments.
£15k total + £2k for my old van.
This worked out, on average, that I pay £17 per month for the finance.
Which means its cost me a grand to finance it.
But, after a few difficult years a while back, I had a 'cushion' on £20k just in case.

I can see the benefit of leasing but it's not for me.
If something goes wrong and I can't afford to make the payments, I've still got the money sitting in the bank.
If I want to sell the van-I can.
I drive it nicely, cause it's mine.
Ask yourself, if you've ever had a hire car or van, how did you drive it?
I wasn't careful. Not as much as I am with my own.

OP-if you're driving something now I assume you own, see about chopping it in-bet you get £2k-seems to be a standard price...
Then how much more would it cost to own the van at the end compared to paying £x each month then giving it back?
I'd bet it ain't much different.

Sorry DD but how do you work out you pay £17 per month interest if you can't remember the cash price?

I didn't just work it out. That's what it worked out to on the day.
The £17 per month stuck in my mind. The cash price didn't.