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."

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

17 October 2025

"Fantastic service from start to finish. Liam took the time to listen to the vehicle that I wanted. Within 2 weeks the right vehicle was sourced and delivered Joe was on point with work out the logistics and taking care of my part ex with exception customer service Thank you both"

Sarah Ward

Sarah Ward

01 September 2025

"We have used Vanaways on two occasions now and the customer service has always been great. I contacted them as our team grew and withing 2 weeks we had the vans in our yard. Quick and efficient service all round. Tyler in the delivery department kept me up to date throughout the process. Would certainly recommend."

4.8 out of 5 from 481 reviews
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