Finance Lease for electric vans. What is it ? Why use it ? Who is it for ?
Electric Van Finance lease is a product that doesn’t really give ownership though plenty of people have. A deposit is placed of between 1 payment in advance and 50% of the vehicle cost. Payments are then made over a period of up to 7 years with or without a final payment. The loans are generally given by banks oppose to vehicle finance companies. At the end of the loan the vehicle must be sold to a third party. VAT is paid monthly on the payments and claimed back quarterly. Its one of the best forms of finance and and really suits almost every type of company.
VAT On Electric Van Lease Deals
Our underwriting on electric van leasing is sympathetic, with some extremely low interest rates. This is budget motoring indeed. Bank finance lease is ridiculously cheap in comparison to traditional contract hire companies.
Once you have a van on finance lease, it opens the door to buy other fiscal products using this bank finance company.
If you Fail Finance ?
If the normal bank fails then there are tier two and tier three lenders. They like 10% deposit argue like mad over balloon payments and prefer 36 and 48 month terms so payments are expensive but you will have paid for the vehicle in a very short period of time.
PAID on initial deposit, admin fee where applicable, on monthly payment and on final payment.
This product generally doesn’t suit Flat Rate VAT Customers
PX at any time. Early on in the agreement you will be in negative equity later on it balances itself out
If you do crazy miles final payments need to be reduced. Many people on a budget don’t but you have to work harder when you want to sell or PX.
At the end of the agreement you have some choices
over 70% of people never reach the end of the agreement as the part exchange the van. Your choices at the end are
– Refinance the final payment
– Peppercorn – please don’t !
– Sell the van settle the final payment and walk away from it
Preregistration Of Electric Vans
Some of our vehicles are preregistred if you really want to get the very cheapest deal. A V5 copy is always available should this be sufficient. Pre registration often saves thousands but we understand some companies would rather pay more and have a V5 for parking etc