Funding your van

Here at Rock Commercials we have no ties to any particular finance company we are constantly looking around to save you money on financing your van.

Once you've looked through our vans for sale, the next question is how to pay?


The days of 'cash is king' has passed, with funding rates as low as they are most business people would rather use their money in the business not tied up in a depreciating asset..

If you would like to pay by cleared funds that's not a problem please contact one of the Team at Rock Commercials for a price.

Hire purchase

Hire Purchase is the traditional method of financing a vehicle with the vehicle becoming your property at the end of the period. After paying an initial deposit you then pay equal monthly payments over anything from a 1 to 5 year period.

The interest rate is fixed at the beginning of the agreement. This gives you the protection against increasing rates over the period. Therefore allowing you the benefit of easier budgeting. After the last monthly payment has been paid you become the official owner.

Benefits include

  • Deposit negotiable - available from VAT only

  • Ownership of vehicle

  • Flexible deposit

  • Writing down allowance is claimable

  • Vehicle shows on your balance sheet as an asset


Leasing is a cost effective funding option, traditionally used by V.A.T registered businesses. Although you never actually own the vehicle, leasing provides flexible financing for a minimal outlay and still proves to have its tax advantages.

The lease is usually between 1-5 year period depending on your annual mileage and the age of the vehicle. To ease cash flow a final lump sum payment (residual or balloon) can be added.
The responsibility of disposing the vehicle is yours of which you typically retain 95% of the sales proceeds and return 5% to the leasing company.

Alternatively, if you do not want to dispose of the vehicle at the end of the period, you can enter into a peppercorn rental, which allows you to keep the vehicle for an extended period. During the lease term the vehicle is classified as an asset and can therefore be offset against taxable profit.

Benefits include

  • Use of vehicle without a large capital outlay

  • Improved cash flow with fixed monthly rentals

  • Rentals allowable against taxable profits

  • Reduced monthly payments


We often get asked "How should I finance my van?" we appreciate that everyone and business is different, therfore please contact one of the Team at Rock Commercials to discuss your needs and we will taylor make a plan that best suits you.

Contract Hire

Contract hire is a contract for sole traders, partnerships, limited companies and PLC's. The Hirer benefits by paying a single fixed rental each month. This includes road fund licence and, if required, service and maintenance. Rental periods typically vary between 12 and 48 months, there is no large initial payment to be made as deposits are usually equivalent to between 1 to 6 months rental.

VAT is payable on rentals but is reclaimable by VAT registered companies. At the end of a contract the vehicle is returned to the lender at the agreed contract mileage with no final or balloon payment to be made.

If you take a full maintenance package, all you need to do is insure the vehicle and fill it with fuel, simple. You can also choose the option to have a relief vehicle should yours be off-the-road for a period of time.

Main advantages of contract hire include

  • Fixed monthly outgoings

  • Low initial outlay

  • Offset the rentals against the business

  • All financial risk of asset ownership are removed

  • You have the option of a maintenance program avoiding possible large and expensive bills

  • No depreciation risks

Finance is available subject to status.

Call one of the Rock Commercials Team
on 01656 86 79 80 now!