Finance Information

At Transit GT we offer bespoke, customised vans that appeal to a business user looking for a more individual and specialist commercial vehicle that better suit there need and portrays their business as a cut above the norm. The specialist nature of these vans also appeals to consumers with family’s that enjoy outdoor activities that require a bit more space. With such a broad spectrum of customers, it’s good to know the second-hand market values are reassuringly high.

If your self-employed, new start or an established business or a private purchaser rest assured we have a competitive priced, flexible funding solution to suit you.

We have a range of funders, offering the lowest rates for our customers. Our sales and business management team are approved and authorised by the FCA to make sure you get the right funding method to suit your requirement.

To help us deal with your enquiry we need to find out more about you or your business. We will typically ask the following questions.

  • Are you an employee (Consumer Finance) or self-employed (Business Finance)?
  • How long has your business been established, are you VAT resisted?
  • Is ownership important to you or would you rather renew every 3-4 years?
  • What deposit do you have and what is your monthly repayment expectation?

Which category do you fall into?

Consumer Finance (Regulated Agreements) Finance products

Suitable if you’re a private purchaser, employed on payroll or retired.

We offer cash purchase. Hire Purchase or Hire purchase with balloon payment (also known as Lease Purchase)

The key feature of these products is the word purchase you will, therefore, own the van at the end of the term after the final payment or balloon is settled.

Hire purchase

The minimum deposit would usually be the VAT on the new van. For example, a new van costing £20,000 + VAT would require £4000 as a deposit. The maximum term would be 5 years.

Hire purchase with a balloon payment

Its possible to reduce the payment by introducing a final payment at the end of the term, this is known as a balloon payment. This figure is set by the finance company and dictated by annual anticipated mileage. The van cannot be returned. The purchaser is responsible for this balance and it must be settled at the end of the term.

Business Finance (Generally Non-Regulated Agreements)

Self-employed, Sole Trader, Partnership and Limited Companies

Business Finance Lease

Finance Lease is the most popular funding method with our business user’s as it offers lower initial rental followed by affordable monthly rentals. This is achieved by offsetting the cost with a final balloon payment at the end of the term. The VAT is paid monthly not on the initial cost, this assists your cash flow. As this is a lease product the rentals are 100% tax detectable, the van is never owned, however, if at the end of the term, you wish to retain the vehicle there are a few ways this can be achieved.

  • You can either opt to take advantage of equity build up in the vehicle by selling it yourself or part exchanging the van, any equity is released to yourself. Alternatively, provided the van is sold to a third party you can simply re-purchase it which will effectively be a new agreement.
  • You have the option to settle the balloon payment and keep the lease agreement in place with the finance company for a nominal sum paid annually (known as a peppercorn rental).

The vehicle is hired for a fixed monthly rental with a final rental (balloon) which is estimated as the trade residual value of the vehicle at the end of the term. You are responsible for disposing of the vehicle at the end of the agreement term. If the sale price is above the predetermined final rental (balloon) you will retain the equity, less a small charge from the leasing company. If the sale price is less than the final rental (balloon) then you will be liable to cover the shortfall. The final rental is calculated using the anticipated mileage in the vehicle over the term.

Business Contract Purchase and Hire Purchase

We recognise that many customers see their van as a critical asset, so ownership is important. The traditional method of funding is Hire Purchase, the cost of the van is repaid over a set period plus interest typically 3-5 years. This is a cost-effective funding method however the monthly repayments may not be affordable and the VAT on the purchase price is the minimum required for the deposit.

Alternatively, we can offer Contract Purchase, this is an agreement to purchase a vehicle via a series of lower monthly instalments followed by a final balloon payment. At the end of the term, you have 2 options

  • Part exchange and use any equity for the deposit on your next vehicle.
  • Keep the vehicle by simply paying the optional final payment. (This can be refinanced if funds are not available)