Leasing & Finance

Commercial Van/Vehicle Hire Purchase

Useful van insurance related information.

Finance Lease

For customers who are VAT registered, leasing is a very tax efficient method of funding your new van. Leasing provides the customer with the benefits of ownership, maximum flexibility and minimum deposit. The benefits of leasing are:

  • Deposits are usually 1-3 monthly repayments (or rentals), but can be any amount if the customer wishes to increase the amount.
  • Flexible repayment terms up to 60 months
  • Monthly repayments.
  • VAT is paid monthly but reclaimed quarterly on repayments for VAT registered customers.
  • Repayments (or rentals) are 100% allowable against taxable profits.
  • If required Leasing can have a balloon or terminal rental as it is sometimes called,
    deferred to the end of the agreement. The benefit of this is that can reduce the monthly repayment and aid cash flow.
  • The vehicle is sold or part exchanged at the end of the agreement, and the customer benefits from 95% of the sale proceeds.
  • No mileage penalties or clauses.
  • Leasing can still be cost effective for non VAT registered business users, because of the low initial deposits, maximum flexibility, and spreading the VAT element across the full term.

Contract Hire

  • Harris commercials can offer long term hire for an agreed period and milage at a fixed monthly cost.
  • You hand the vahicle back after the agreed term and milage.
  • The Vehicle is off your balance sheet and is treated as a rental and not a depreciating asset.
  • VAT content of rentals can be offset on your accounts.
  • Full maintenance package can also be offered with contract hire and can include road tax, full service, Tyres etc.

Hire Purchase

There are several ways of financing your new vehicle. Hire purchase is perhaps considered the more traditional method of funding, and most people understand this type of finance agreement. There are several benefits if you choose hire purchase as your chosen method of funding your next new van:

  • Low deposit – VAT only
  • Flexible repayment terms up to 60 months.
  • Budgetary control and cash flow are aided by fixed monthly repayments.
  • VAT registered customers can reclaim VAT deposit.
  • 100% of the interest charges over the full term can be offset against taxable profits.
  • The vehicle is an asset on your balance sheet and benefits from writing down allowances Yr1 – 40%, Yr2 – 25%, Yr3 – 25% etc.etc.
  • Ownership of the vehicle will pass when the last repayment has been made and the agreement with the finance company is complete.
  • If ownership is a priority, hire purchase is a cost effective method of financing you new Truck/Van.

Site Notice:
“Please consult with your financial advisor before deciding on any of the above.
Harris Commercials accepts no responsibility to any person relying on this information.”

Contacting us:

If you would like further information on any aspect of sales or
leasing the why not contact our sales team direct on 01 – 4501900
or email info@harris-commercials.com and we will try to help.

Our Sales team

Sales Executive John Keogh john@harris-commercials.com