Leasing Explained
Blue Chilli Van Leasing - Contract Hire and Leasing Explained
Blue Chilli Car and Van Leasing are the experts in contract hire and leasing of cars and vans. We can help you decide the best option for you, your business – and your budget. Financing vehicles can be a minefield so we want to make sure you get it right, so here’s your handy guide to all things contract hire and van leasing, explaining the advantages of leasing your van or fleet - and why you should come to us.
What is contract hire?
Contract hire – often called car or van leasing - is an affordable and manageable way for your business to use brand new vehicles. A van leasing deal means you take control of your chosen vehicle for a given length of time - usually between two and four years - but don't own it.
Instead, you enter into an agreement with the van leasing company. You then pay an initial deposit followed by monthly rentals for the term of the lease.
At the end of the contract, the van or car is returned to the leasing company with no further payments (subject to mileage terms).
What are the benefits of van leasing?
Leasing your vans or fleet can bring many benefits to a business. More so, for example, than contract purchase or finance:
- The standout benefit is probably the financial one. Leasing your van or commercial vehicle from Blue Chilli Van Leasing means many of your vehicle or fleet costs are fixed. No nasty shocks or hidden expenses; you know exactly how much you pay and when you have to pay it. This can be a game changer for a small company’s budget.
- There can also be tax advantages. VAT-registered businesses who choose business contract hire can claim back 50% of the total payments, PLUS 100% of a maintenance package cost. Hire rental tax allowances may also apply.
- You need have no concerns about losing money through depreciation. Any loss of the van’s value is simply not your problem. You don't own it. At the end of the term, you simply hand the keys back to the dealer. You also avoid the perils and pitfalls of selling the van. That’s the dealer’s responsibility.
- Contract hire and van leasing enables you and your staff to drive brand new vehicles, even upgrading every two or three years. This has clear benefits for company image, reliability and you'll never need to worry about the van’s warranty expiring.
- Some lease deals also offer maintenance packages. Meaning any if problems occur with the van, you won't have to suddenly find money for repair costs. Although it’s worth noting that some new vehicles have a more generous warranty, so that may not be necessary. We’ll go through all the pros and cons with you.
- Even the most generous manufacturers’ warranties can't be completely comprehensive. That’s when the professional support you get as standard from Blue Chilli Van Leasing is invaluable. We’ll discuss everything with you, so you’ll know exactly what is and isn’t covered.
Where do lease vans come from?
All of our cars, vans and commercial vehicles come from our extensive and high-quality partner franchised dealer network. This brings you the reassurance of full dealer AND manufacturer back up. Blue Chilli Van Leasing deliver a genuinely nationwide car and van leasing service.
This can be crucial when considering a van leasing deal. With Blue Chilli Van Leasing we also deliver assurance and peace of mind.
What else do I need to know?
When considering your van leasing deal from Blue Chilli Van Leasing, there are a few important details to be aware of.
- Firstly, there will be a cap on the yearly mileage. It’s vital to get the right deal for you and your company. Exceeding the mileage limit will invoke a fee. Blue Chilli Van Leasing's experienced team will cheerfully advise you, and ensure you get the right deal.
- Secondly, you won’t own the vehicle when you use contract hire and leasingso fully comprehensive insurance is essential. Third party insurance only covers you for damage caused to a third party in the event of a claim. You would be liable for the entire cost of repairs to your vehicle. Returning a damaged car at the end of the contract will incur charges. You should have no problem obtaining fully comprehensive insurance on your leased vehicle, it can be slightly more expensive. If a leasing deal is best for you, this is still well worth it.
- Lastly, if you miss a payment or decide to end the lease early, there may be further charges incurred. Once again, the friendly, professional Blue Chilli Van Leasing experts will discuss everything with you before you sign your van leasing deal.
Contact us today to discover EVERYTHING you need to know about leasing your next van from Blue Chilli Van Leasing.
