CONTRACT hire is a very popular way for businesses to acquire cars and commercial vehicles, but how many companies actually choose finance lease as an alternative?
Not as many as you may think, unless, of course, they are dealing with a broker that understands and offers the product as part of their portfolio (it is not an option that all brokers necessarily understand and therefore it can be deemed as “harder” to sell).
Finance lease is not an option that all brokers understand and as such, it may not always be offered the client as a form of funding
In addition, the word “balloon” can scare customers off, mainly due to the shortfall balloon disaster that is associated with the recession era.
Jonathan Lewis, Business Development Manager for Global Vans, told us about how finance lease plays a major role within their company as a client LCV funding method;
“Finance lease is ideal for VAT registered companies who would like an on-balance sheet form of finance and also prefer to tackle the administration of their commercial vehicles themselves.
“Our employees are fully trained to guide businesses when it comes to the right funding option for their company and finance lease is a popular and often more flexible way of getting vans on the road than fixed term contract hire.”