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Contract Hire and Leasing Guide - Flexi lease and leasing for vans and LCV

All Vehicle Contracts Contract Hire and Leasing Guide - Flexi lease and leasing for vans and LCV
  • Up to date vans and commercial vehicles can say a lot about your business and also reflect your business branding that can generate business and create customer confidence and trust.  Up to date vans and commercial vehicles can often be cheaper to lease than you think.

    Why Flexi lease and leasing is ideal for vans and commercial vehicles?

    Here at AVC we believe Flexi lease and leasing can be a better alternative to Contract Hire and can be a better financial option than buying it outright, providing your lease is tailored to your requirements from the outset. So let’s look at the key points a finance lease or flexi lease offers over contract hire.

    Finance lease and flexi lease

    Vans, commercial vehicles and required equipment funding without mileage restrictions, and vehicle return restrictions.

    Finance lease

    Vans, commercial vehicles and required equipment funding tailored to suit your monthly budget and annual mileage, making budgeting easier and straightforward.

    Finance lease and flexi lease

    Initial, monthly and final payments on commercial vehicles are subject to VAT that is reclaimable.

    Finance lease and flexi lease

    Manufactures support and additional fleet support discounts are available to Vans, commercial vehicles that can be more restricted on outright purchase options resulting in a more cost effective monthly payment.

    Finance lease and flexi lease

    You retain profit from the sales proceeds this is refunded to you classed as a refund of rentals, as per the terms of your agreement. If you part exchange the vehicle, it is normal for the dealer to complete the sales agreement direct with the finance company

    Flexi lease

    This is a lease profile were by there is no final payment and the sales proceeds is refunded to you classed as a refund of rentals, as per the terms of your agreement. If you part exchange the vehicle, it is normal for the dealer to complete the sales agreement direct with the finance company.

     Finance lease and flexi lease

    Full service and maintained contracts can be included in your lease options.

     Flexi lease

    This is a good option for high mileage working commercials vehicles, with specialist’s equipment that can be transferred to a new vehicle at the close of the lease period.

    What is a lease agreement?

    Lease agreements allows use of a vehicle without ownership, but still offers the return of all the asset value achieved from the sale, or the majority of the sale proceeds less a percentage to the finance companies in some instances.

    What happens at the end of a Finance Lease?

    The customer, or lessee, arranges the sale of the vehicle on behalf of the finance company (the lessor), the owners of the vehicle. The lessor arranges the invoice and receives the funds from the sale.  Profit from the sale is refunded to the lessee classed as a refund of rentals, as per the terms of your agreement. If you part exchange the vehicle, it is normal for the dealer to complete the sales agreement direct with the finance company.

     What happens if I want to keep the vehicle?

    If you want to keep the vehicle, the finance company (lessor) usually offers a peppercorn rental service; this is a nominal annual charge that is also treated as a tax deductible rental.

    Contract Hire or Leasing - which is the correct terminology?

    Contract Hire may be referred to as Leasing, whilst this is a popular reference, a vehicle leasing agreement is not the same as Contract Hire, there are key differences.

     Vehicle Lease agreements in the U.K. are usually subject to a residual value, where the lessee - the person who leases the vehicle - is responsible to the Lessor - the owner (Finance Company) - for the residual value amount.

    Flexi lease

    Flexi lease is a fully amortized, lease where the asset value is written down to zero or a nominal over the lease period, were the lessee receives the full sale proceeds of the vehicle, less any percentage retained by the finance company which on average is 5%

    To make life as simple as possible, the All Vehicle Contracts website helps you choose and compare which vehicle and vehicle lease deal is right for you. Interactive quotation options and full vehicle comparisons, on virtually any make, model or manufacturer, are available for you to explore and compare on line.  

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