Opting to lease a van such as your new Citroen Dispatch, whether for personal use or for your business, presents an excellent strategy to bypass substantial initial expenses and safeguard against the depreciation of the asset (namely, the van’s value diminishing over time). Nonetheless, securing approval for Van Finance is a prerequisite for entering into a van lease agreement.

Understanding Van Finance

Van finance is when you borrow money to cover the cost of your new van. You would be the registered keeper of your new Citroen Dispatch and have full access to use the van, but you won’t legally own it until you make your final repayment.

Essentially you will pay a deposit for the van and then pay a set amount every month until you have paid the vehicle off. Citroen Van Sales offer a number of van financing options. Read on as we explore them, alternatively please do browse our dedicated financing page on our site

Types of Finance For Your New Citroen Van

Citroen Van Sales offers three types of finance for your new Citroen van: 

Van Hire Purchase: Simple Van Finance

For those considering financing options for a new Citroen van, the Van Hire Purchase offers a straightforward solution. With this option, the initial deposit matches the amount of VAT and Road Fund Licence (RFL), leading into a flexible repayment schedule that spans 36 to 60 months.

A notable benefit here is that the monthly repayments are exempt from VAT, which can provide immediate cash flow advantages. This is particularly advantageous for VAT-registered customers who can reclaim the VAT on the deposit. Furthermore, the full amount of interest charges can be offset against taxable profits, offering a significant fiscal advantage.  

A new Citroen van is recognised as an asset on your balance sheet, eligible for writing down allowances, enhancing your financial health. At the end of the agreement, with the payment of the option fee, the Citroen van becomes entirely yours, blending the practical utility of the vehicle with the financial benefit of asset ownership.

Van Finance Leasing 

For anyone exploring financing avenues for a new Citroen van, Van Finance Leasing stands out as an attractive option. With an initial deposit set at the equivalent of 1 to 3 months’ rental plus the VAT on that amount, it offers a flexible starting point. The leasing terms extend from 24 to 60 months, catering to a wide range of needs and preferences.

A key benefit of this leasing model is the monthly VAT payment, which VAT-registered businesses can reclaim quarterly, significantly bolstering cash flow. Moreover, the total rental expense is deductible from taxable profits, enhancing the financial appeal.

This leasing solution may also feature a balloon payment scheme, postponing a larger sum to the contract’s end, thereby reducing monthly payments and aiding in cash flow management. Engaging in a discussion with our team can help tailor this aspect to fit your financial strategy.

As the lease concludes, the opportunity to sell or part-exchange the Citroen van allows the lessee to retain 95% of the sales proceeds (excluding VAT), offering a notable advantage of this leasing option. The absence of mileage restrictions further adds to its flexibility, rendering Van Finance Leasing a perfect fit for those seeking a cost-effective and adaptable financing method for their new Citroen Dispatch.

Van Contract Hire

Van Contract Hire offers a streamlined approach to financing a new Citroen van, blending the ease of leasing with added benefits. This option requires an initial deposit equivalent to 1 to 3 months’ rental, plus VAT, providing a straightforward entry into the contract. Similar to VAN Finance Leasing, Contract Hire includes the option for a maintenance package, eliminating the concern of vehicle resale at the contract’s end.

Deposits can vary, starting from the equivalent of three rentals, allowing for flexibility in upfront costs. One of the main attractions of Van Contract Hire is the predictability it offers; with fixed costs as long as you adhere to the agreed mileage, budgeting becomes more manageable. Monthly repayments do incur VAT, but this can be reclaimed by VAT-registered businesses, aiding in cash flow management.

The rental charges under this contract are fully deductible from taxable profits, presenting a significant tax advantage. An optional fixed maintenance package can cover services, repairs, and tyres, ensuring your Citroen van remains in top condition without unexpected expenses.

At the conclusion of the agreement, the process is simple: return the vehicle. It will undergo an inspection, and any necessary reconditioning costs will be billed, making this option particularly suited for VAT-registered businesses with larger fleets seeking to avoid the intricacies of vehicle ownership. However, it’s important to note that the contract is sensitive to mileage, and early termination may incur additional costs.

Advantages of Financing Your New Citroen Van

There are definitely benefits to getting your van on finance, and they can apply to different situations:

  • Choosing van financing means you don’t have to pay a big amount all at once. You’ll have steady monthly payments without any hidden extra costs, and everything will be clearly stated in a contract.
  • With vehicle prices going up, it might be smarter for you to pick a finance option to help manage your money better over time.
  • This way, you can get a brand-new van that might have been too expensive for you before. The monthly payments are affordable, making it easier to get the van you want!
  • Getting a van on finance is easy and straightforward. You’ll get all the help you need, making the process worry-free.
  • Plus, the deal often includes taking care of maintenance and road tax, so you have fewer things to think about with your new van.

Getting Started With Your New Citroen Van

Starting your journey with a new Citroen van is made easy with the right financing option, tailored to fit your needs. Financing is a smart strategy to avoid large upfront costs and protect against your vehicle’s depreciation. It’s important to secure Van Finance approval before proceeding.

Van finance means you’re borrowing funds to cover your new van’s cost, with ownership transferring to you after the final payment. Citroen Van Sales offers various financing options to cater to different preferences and budgets, including Van Hire Purchase, Van Finance Leasing, and Van Contract Hire. Each provides unique benefits, from tax advantages and flexible terms to predictable costs and hassle-free processes, ensuring you can affordably acquire and enjoy your new Citroen van.

Financing your Citroen Dispatch simplifies acquiring a brand-new van, with manageable payments and often included maintenance and road tax, reducing your financial worries and making the journey as enjoyable as the destination. 

Get in touch today to speak to one of our team. Or head over to our finance page to find out more.