First of all, Contract Hire allows you to be able to get a brand new Luton van at a far cheaper rate than a Hire Purchase agreement. Some benefits of Contract Hire are:

• The initial deposit is low.
• Your road fund licence will be included.
• You can add servicing, maintenance and tyres for a truly stress-free experience.
• Your monthly vehicle payments can be offset against taxable profits, so you pay less VAT.
• The vehicle isn’t shown as a liability on your finances.
• VAT efficient – businesses are able to claim 100% of the VAT back for business use.

• Lenders will charge you for any damage that is over “fair wear and tear”. This would be determined under BVRLA’s guidelines.
• You have to accurately estimate your annual mileage otherwise you’ll be liable to pay excess fees.
• You don’t have the choice to purchase the low loader van at the end of the contract.

With this type of contract, you simply hand back the vehicle at the end of the contract, leaving you free to contract hire a brand new low floor Luton van. There is not an option to take ownership.

Finance Leasing gives you choices at the end of the agreement which you simply don’t get with other finance options. It’s especially valuable if you can’t accurately anticipate the number of miles you’ll be doing in your new low loader.

It’s a great alternative if you plan to use the van for a job that might have a detrimental affect on it’s condition at the end of the contract. For example, if you’re picking up trade goods all day and taking the van onto building sites, Finance Lease is a good option for this.

Contract Hire, comparatively, is quite restrictive. With this option, you only really have a single choice at the end of the agreement which is just to return the vehicle. As mileage is restricted on Contract Hire, you could be due a large excess mileage fee and a repair bill if the van isn’t up to BVRLA (British Vehicle Rental & Leasing Association) standards.

Finance Leasing simply gives you more choices as shown here. It allows you to have a more flexible finance agreement and you can choose to leave the agreement/request early settlement at any time in the agreement. Maxi Mover would suggest not settling too early in the contract because the depreciation curve is much more significant in the beginning of the contract. If you leave the contract too early, the amount owed could be more than the van resulting in negative equity.

Comparatively, in a Contract Hire agreement you can be penalised for leaving the contract early with heavy fees.

No, not always. Some finance companies will request that you are VAT registered but it is possible for us to work with funders who do not have this as a requirement. If your company becomes VAT registered whilst the agreement is in play, you can start claiming back VAT on the payments after your registration.

You can reclaim up to 100% of the VAT from your monthly payments if you’re VAT registered.

There are mileage restrictions with Contract Hire, but you stipulate these at the beginning of the agreement. It’s very important to give an accurate estimation of your yearly mileage so you aren’t charged excessively at the end of the term. If your circumstances change, you can change the terms of the agreement with the funder.

Yes you can if your funder offers this. After a year, you can ask for a contract amendment to better reflect your current circumstances rather than waiting on a large fee at the end of the agreement.

No. Commercial vehicles do not get judged based on their CO2 emissions. All RFL for commercial vans is charged at a standard rate. With a Contract Hire agreement, this is paid together with your monthly payments for the entire term agreement.

Finance companies usually have maximum limits on agreement length and annual mileage, but you can ordinarily amend your contract if you stay within these limits.

You must be 18 years old at a minimum due to the Consumer Credit Act. All funders will also need a copy of your driving licence.

Maxi Mover require a £2,000 chassis allocation deposit to reserve your van before the build stage. This will be returned to you, minus any charges, on delivery or handover.

Contract Hire is perfect for businesses who want all the advantages of getting behind the wheel of a brand new Luton van without worrying about selling the vehicle, maintenance or any admin during or at the end of the contract. Contract Hired vehicles do not show on your financial statement and you will benefit from a better cash flow.

The only requirement at the end of the agreement is that the van is returned in a fair condition with the expected mileage. If your business is likely to stick by this, then Contract Hire is a good option for you.

Yes, every Contract Hire agreement and all finance lenders will conduct a credit check. However, all lenders have differing criteria and requirements, so Maxi Mover will endeavour to find the right funder for your business and your current circumstances.

As we use many different leading funders, the time taken for a credit check can differ between them. This can vary between as little as 10 minutes to 72 hours. It can also depend on the circumstance of the application.

Credit checks for any finance will leave a digital footprint on your credit. However, this footprint does not record the outcome of the credit check. Usually, your credit will only take a hit if there are many repeated checks over a short period of time.

This completely depends on your credit history and how bad it is. Maxi Mover use a range of finance lenders who will do their best to get your application accepted. The actual acceptance of an application is down to the discretion of the lender. Some lenders will be more understanding towards your finance/credit situation than others.

Before being accepted for finance by the funder, all of our clients must be evaluated for credit. Although lenders will have different requirements, some typical instances of the types of data would be:

• Your full name, address and home phone number
• Company registration number (if limited) and your company name
• The past 5 years of your address history
• How long your business has been operating
• Director details
• Bank details

No, the Maxi Mover low floor van will remain the property of the financer during the whole agreement. This also has a positive of the funder carrying the risk of more than expected depreciation rather than yourself.

You simply arrange and time, date and place with the financer to collect the vehicle from yourself.

No you cannot. Because there are various tax and VAT benefits that come with Contract Hiring a van, it isn’t possible to own the vehicle at the end of the agreement.

Yes, you are responsible for all parking tickets and penalties. All fines for parking are given directly to you rather than to the funder, so you should deal with them as quickly as possible to avoid extra fees.

However, all speeding fines will be sent to the finance company as they are the registered keeper until the end of the agreement. They will pay the fine and pass the details on to you. Please be aware, they will usually charge an administration fee for paying the fine.

Unique to Contract Hire, you have the option to include services, maintenance and tyres package for an extra monthly fee. This will cover you for all maintenance costs whilst you are operating your low loader Luton van making for truly fixed cost motoring.

In the unfortunate case of an accident, you will need to call your insurance company because they will need full information of your accident. Naturally, Maxi Mover will do our best to provide any assistance in talks finance lender and are pleased to assist wherever possible.

It is important to note that you have a right to choose where and how your Maxi Mover Luton van is repaired. Your insurance company may try and convince you to have you van repaired at their bodyshop, but this is unlikely to meet the rigourous standards of service and quality we offer at Maxi Mover.

Financers will charge a fee for any damage or imperfections that are above “fair wear and tear” under BVRLA’s guidelines. If your Luton van does suffer any damage before your term is up, it is advisable to get this damage fixed before returning it. You can see what kind of damage falls under “Fair Wear & Tear” in this link.

You can usually customise the van, as long as the changes made are legal. Additions or accessories that enable you to do your job better are ordinarily allowed. They can be included with your contract so you can spread the cost and pay monthly.

Yes you may. You should notify the lender so you can get a copy of the van’s registration documents to avoid any problems when you travel overseas.

You should also make sure your insurance covers you for overseas travel with your low loader van.

There isn’t any reason why your insurance premium should increase under a Contract Hire agreement. Financing of vans is becoming increasingly common; therefore, most insurance companies will provide highly competitive quotes, no different from what you’d expect on a Luton van you’d bought with cash.

No, you are liable for insuring the Luton van for the length of the agreement on a fully comprehensive policy.

Yes, definitely. However, insurance must be in the applicant’s name, whether it is your name, the name of the trading business or your business.

Yes. Lenders will usually require you to take out a fully comprehensive policy for the entire term of the contract.

The fact that you are Finance Leasing your van will not affect your ability to add other drivers to your insurance.

No. We recommend you use a trusted price comparison website to ensure you get the most competitive quote.

This is something that your insurance company will ordinarily cover. You may be charged an extra fee for the option. It is worth checking with your insurer to see whether this is something they can provide and what the terms are for the courtesy van.

We prefer to carry out a comprehensive handover at our factory, however, if you would like your new Maxi Mover delivering to your chosen address, we will be able to arrange this for you at a nominal cost.

We are able to offer a complete professional paint job to your exact specification for an additional cost.

Yes. Road tax will be included in your Contract Hire term for the entire length of the agreement.

Yes. However, some lenders will require a take an administration fee to add private plates. This isn’t unusual and is normally only a small charge.

The only hidden costs in a Contract Hire agreement would be factors such as:

• Excess mileage above your agreed mileage
• Any damage that would be above fair wear and tear (as stipulated by BVRLA)
• Any extra admin fees for paying for speeding or parking violations on your behalf (as well as the cost of the fine itself)

This really depends on the Luton van you choose. As most of our customers tend to opt for our special offer stock vehicles, we can usually deliver your new van within a few weeks. If you decide to go for a factory ordered or bespoke vehicle, these can take longer, typically around 8 weeks or more in some cases.

We offer part exchange on most vehicles, you will just need to provide some details for us to provide a value for it.

Not initially. We will ask you to assess the vehicle’s condition so that we can give you a valuation. Obviously payment of this amount will be dependent on the van being ‘as described’ when we receive it.

As a minimum, your part exchange will need to have a valid MOT and be legal to drive.