Van Finance

MW Vehicle Contracts are appointed representatives of Network Vehicles (part of the worldwide LeasePlan brand) and Lex Vehicle Leasing. MW Vehicle Contracts are also proud associate members of the BVRLA (British Vehicle Rental and Leasing Association). Below you will find a brief overview of the differences between the main van finance and car finance options for commercial vehicle leasing. If you would like a more in-depth analysis of the options available to you, don't hesitate to contact us. If you are self employed or run your own business, we strongly recommend that you also consult your accountant to see which of these commercial van leasing or options for contract hire vans are suitable for your business.

Contract Hire (CH)

This is what is known as a 'no risk agreement', ideal for companies who need vehicles on a fixed monthly budget with the option of including maintenance. At the end of the term you simply hand the vehicle back with no disposal issues or risk of short fall in the vehicle value.

Main features and benefits of Contract Hire include:

  • Fixed rentals for the whole package, making budget planning easier.
  • Flexible terms to meet your requirements with variable duration and mileage terms.
  • Road Fund Licence included for the duration.
  • Maintenance of vehicles can be included in monthly rentals.
  • Contract hire removes depreciating assets from the balance sheet and the associated risks of owning a vehicle(s).
  • Flexible invoicing helping to considerably reduce administration costs.

Personal Contract Hire (PCH)

For private individuals wanting to benefit from the popular contract hire for businesses (as above). This is fast becoming the most popular amongst private car users.

Main features and benefits include:

  • Fixed rentals for the whole package, making budget planning simple.
  • Flexible terms to meet your needs with variable duration and mileage terms.
  • Maintenance can be included in monthly rentals.
  • Simply hand the vehicle back after agreed term (no disposal risks).

Contract Purchase (CP)

For companies who want their own vehicles but who want to avoid any risk of depreciating assets

Main features and benefits include:

  • Similar benefits to contract hire - fixed payments and flexible agreement terms.
  • Maintenance and value services can be include.
  • The van finance company guarantees the resale value of your vehicle at the end of the contract purchase agreement for a known and fixed amount.
  • Ownership passes to the customer (you) at the end of the agreement after all payments have been made.

Personal Contract Purchase (PCP)

Main features and benefits include:

  • This is a conditional sale agreement which allows you the option to purchase the vehicle, or to simply hand it back at the end of the contract period. This is a regulated agreement (Consumer Credit Act - to protect your interests).
  • You can include comprehensive service and maintenance repair options, as available through Contract Purchase.
  • Finance payments do not attract VAT. If you take the optional service package then VAT is payable on the service costs only.

Finance Lease (FL)

Main features and benefits include:

  • This is the most popular option our customers take.
  • Finance Lease is a tax efficient option where you choose to pay either the entire cost of the vehicle (known as fully amortised lease) including interest charges, over an agreed lease period or opt to pay lower monthly rentals with a final payment ("balloon") based on the anticipated resale value of the vehicle (residual value).
  • At the start of the contract usage parameters (term and mileage) for the vehicle are agreed. Assuming this does not change,the monthly payments and interest rates are fixed for the full duration of contract. You benefit with fixed costs but do take on the administration and operating risks. At the end of the contract you may continue to operate the vehicle under a "peppercorn agreement" although at no time take ownership of the asset, and must sell on to a third party.

Lease Purchase (LP)

Main features and benefits Include:

  • Lease Purchase is an agreement designed to offer vehicle funding where the customer (you) wishes to purchase the vehicle. It is a finance package,it does not include maintenance or any other services. A great way of benefiting from our massive buying power to reduce your outlay.
  • The customer (you) is liable for the full value of the vehicle with no option to return at the end of the agreement. No payments are subject to VAT as this is paid up front on the purchase price.
  • The vehicle is registered in the name of the customer (you or your business) as you are purchasing the vehicle. As a company then vehicle will appear on balance sheet. You benefit by having a 'writing down' allowance against your tax , all in the first year or spread over a number of years.
  • A very cheap way of buying a vehicle as you attract full fleet discounts that we pass on to you.
  • MW Contracts only employ fully qualified and certificated finance specialists (ask other companies if they can say the same?). Please call for free valuable advice.
  • Members of the BVRLA - there to protect you!.
  • We are proud to be a Network Platinum Broker.