What Happens at The End of a Van Lease?
19/08/2024 13:09 Share
What Happens at The End of a Van Lease?
If you are coming to the end of your van lease, you might be unsure of what to expect next.
Depending on the van finance type you took out, a few different things will happen, and at Vansdirect, we’ve got you covered.
In this article, we’ll be looking at what happens at the end of a van lease, contract hire, or hire purchase agreement.
What happens at the end of a van leasing agreement?
At the end of your van leasing agreement, you only have one option – to sell the van and take out a new lease.
When you sell the van on behalf of the finance company, you will receive the majority of any profit from the sale. The profit is any of the sale proceeds in excess of the final balloon payment. This can be used to contribute to a new van lease.
If you are a VAT-registered business, you can also claim this back.
What happens at the end of a contract hire agreement?
A contract hire agreement is slightly different from van leasing as the only available option is to hand the van back, there are no alternatives, and you can’t gain ownership of the van.
This type of agreement is ideal if you aren’t interested in owning your van. As with van leasing agreements, you can claim VAT back if you are a VAT-registered business.
What happens at the end of a hire purchase agreement?
With a hire purchase agreement, you have two options to choose from depending on whether you want to own the van.
You can pay a small option to purchase fee which will transfer title ownership of the van to you.
Alternatively, you can hand the van back. This may not be the most cost-effective option as your monthly payments will have effectively paid for the van.
End of van lease FAQs
1. Will I be reminded before my van lease expires?
There’s no need to worry, we’ll be in touch to remind you that your van lease is coming to an end in plenty of time. We’ll also explain the options available at the end of your van finance agreement.
2. Can I extend my van lease?
It’s not possible to extend your van lease when it ends, you’ll have to take out a new one. But taking out a new van leasing agreement couldn’t be easier. Simply find your chosen van, get in touch, and we’ll sort the rest.
3. Will there be any additional charges at the end of a van leasing agreement?
There should be no additional charges when your lease expires if you haven’t exceeded your van mileage limit or returned your van damaged. If you have exceeded your mileage limit, additional charges will be calculated on a pence per mile basis.
It’s better to anticipate if you expect to go over your mileage and let the finance company know in advance.
Read our guide on how to pick the perfect van mileage limit so you aren’t caught off guard when your lease expires.
4. How do I return my van when my contract hire agreement expires?
Don’t worry about returning your van to us, we can collect it from your home. On the day, we’ll complete a short assessment to check the condition of the van and ask you to sign some paperwork.
If you’ve taken out a new van leasing deal, we can deliver your new van on the same day.
5. Is there anything I need to do before returning my van?
You’ll need to make sure your van is as close to the way it was when you first received it. Make sure to give your van a good clean inside and out.
Understandably after two, three, or five years of driving a van, there could be some wear and tear, and this is nothing to worry about. You won’t incur any additional costs as long as it’s not deemed beyond reasonable wear and tear.
Find out more in our van wear and tear guide.
Here for all your van leasing needs
At Vansdirect, we can support you throughout the entire van lease journey. From finding the perfect new van at a competitive price to when your van lease expires.
With our wide range of vans from manufacturers including Citroen, Ford, Renault, and Vauxhall, you won’t be short on choice.
Contact us today to see how we can help you and your business.
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