Finance Lease

Advantages

  • Flexible contract periods, normally 24 - 60 months. 
  • Potential to profit from reselling at end of agreement.
  • VAT reclaimable on the rentals. 
  • Low initial outlay with flexible initial payment options. 
  • Option to have large final payment to keep monthly payments low. 
  • Finance Lease is an on balance sheet funding method. 

Disadvantages

  • You will not own the vehicle; you will need to resell to a third party.
  • Fixed contract period, charges will apply if you want to exit the agreement early.
  • There is an element of risk due to being financially resposbile for any loss on the future residual value. 

 

Finance Lease is a flexible leasing option, much like Contract Hire it's based on a fixed contract period, set mileage and initial payment giving you a fixed monthly cost.

The vehicle is not returned to the funder though and needs to be sold to a third party at the end of the contract, this means there is no end of contract charges should the vehicle be damaged or over agreed mileage.

Most agreements have a final balloon payment due, this is set by the funder to be in line with the projected residual value, should the resale value be lower than the final payment due, you will be liable for the difference, should it be higher you will retain any profit.

A very popular way to lease commercial vehicles due to its flexibility and ability to negate end of contract charges associated with contract hire.

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Vanaways Reviews

   
Lynne S

Lynne S

04 March 2026

"First time using Vansaway! I was in a bit of a panic as my van broke down and I was unable to fix it. My van is my livihood, so I looked into leasing and contract. I wish I done it sooner. I spoke to Jonathan as my first point of contact. I couldn't have got any luckier having him as my support. He was absolutely fantastic, he went above and beyond to help me. He was easy to contact and would always reply when I had any concerns or questions. His knowledge on all vehicles was impeccable, which made things easier. He listened to what I wanted and needed and explained everything thoroughly help me making the right choice in plan and kept in touch throughout the entire process! He knew I was in desperate need of a van and he did not disappoint and kept his word and I was able to get my new van delivered as soon as possible. Enjoying the drive. Its great about the perks involved in having a contract hire as well! Thank you so much for everything! Highly recommend, vans are just not how they use to be, so its great to have a brand new van along with the support of any engine faults things like that. A huge stress off my shoulders being sole trader."

Fiona

Fiona

30 May 2026

"First time leasing with Vanaways, but have leased before. Initial contact was with Justin, who found the van I need very quickly at a competitive price. No hard sell, and seamless. Yasmine completed the admin and arranged delivery. Great service from both. Follow up calls to see if I was satisfied with van. Professional and efficient, would highly recommend."

Mike Collins

Mike Collins

18 February 2026

"Excellent service from start to finish. Rob was very helpful throughout the purchase of our Ford Transit tipper. Can’t recommend them enough. Mike Collins."

John Owens

John Owens

14 April 2026

"Fantastic service from start to finish. This is the second vehicle we have had from Liam.Liam took the time to listen to the vehicle that I wanted, sourced exactly what I wanted. Within 2 weeks the right vehicle was sourced and delivered Joe was amazing kept me up to date with the progress, the van was delivered this morning early. highly recommend these guys for vehicles Thank you both"

phoebe palmer

phoebe palmer

11 March 2026

"I recently bought a new car from this company and had a fantastic experience from start to finish. Tyler and Steve C were both brilliant to deal with – friendly, professional and incredibly helpful throughout the whole process. They took the time to answer all my questions and made everything straightforward and stress-free. The customer service was excellent and I never felt pressured at any point. Both Tyler and Steve C really went above and beyond to make sure everything was sorted and that I was happy with the car. I couldn’t recommend them enough and would definitely buy from them again in the future. Thanks again for such a great experience!"

4.8 out of 5 from 498 reviews
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