Van Leasing and Contract Hire
Van leasing and contract hire has never been more popular. Today, Contract Hire in the UK is responsible for over 40% of the UK’s company vehicles,
this has risen from just 5% of company vehicles acquired through contract hire in 1980.
Many businesses prefer contract hire through the many cost benefits associated with this method of finance, for example:
- Various VAT benefits and savings
- The benefit of a single agreed monthly payment
- Capital not tied to purchase of a company vehicle can be better used elsewhere in the business.
OVL Group Ltd has over 21 years experience specialising in van contract hire in the UK. Please contact us
if you wish to discuss the benefits in more detail.
How does van leasing work?
Van leasing means you enter an agreement to pay an amount per month to drive a new van. The agreement is usually for three years and at the end of the term you return the van,
or there can be an option for you to continue the lease for another year.
There is an amount to pay at the start of the agreement and then an amount per month. The amount payable at the start is usually stated as a multiple of the monthly payment.
You will see 3 + 33. So if the monthly payment is £200, the amount payable at the start is 3 x £200 = £600. And then £200 per month for the three years of the agreement.
If the agreement is stated as 6 + 33 then that would be 6 x £200 = £1200 and then £200 per month. Paying more at the start reduces the monthly payments.