LEASING is a competitive market – whether you are looking for a company van or car, there are lots of companies offering deals on the internet. All of them will be different and it can be difficult to decide who to deal with.
Of course, you can take the standard approach of checking that your chosen leasing broker is a BVRLA member and is FCA regulated, but even if they are, and they hold a Data Protection Licence, it doesn’t necessarily guarantee that you will get the expertise and attention to detail that you deserve as a customer.
Any company vehicle requirement requires experience and attention to detail: it is essential for any salesperson to qualify the client’s requirements properly before any vehicle is ordered.
Finance Lease with a final balloon payment is a popular way to fund commercial vehicles
Sadly, there are reports of finance leases being advertised and even sold without properly identifying the customer’s requirements from the outset. Finance lease is different from contract hire as the risk ultimately lies with the client – if the vehicle isn’t worth the final end value figure that is pre-determined at the start, the shortfall is down to them.
Finance Lease with a final balloon payment is a popular way to fund commercial vehicles. However, problems have occurred when companies sell this product by calculating the rental working on 10,000 miles per annum, when the vehicle may actually be driving 30,000 or more miles per annum.
At the end of the term, the vehicle will obviously be worth less than the initial prediction that the balloon was based on and this is when the customer can find out that the so-called ‘unlimited mileage’ finance lease wasn’t such a good idea after all.
Ian Evans-Piper, managing director of van leasing specialist, Leasewell (UK) Limited, said;
“Poor or misleading advice from badly trained salespeople can leave clients with large shortfalls at the end of their finance lease term. Finance lease can be a great option for businesses if they are looking to fund commercial vehicles, but they have to be configured correctly and with care from the outset.
“As a company, we pride ourselves in our stringent qualification practices – we offer different forms of funding and can offer assistance on van options to clients seeking advice.
“It is for this reason that our customer retention and referral rate is so high; we like to make sure that our care and competitive pricing keeps people coming back and encourages them to tell others about our services and that they can trust us with their business van requirements.”