Financing your van

Choosing the right van for your business can be a big decision and so can how you finance it.

There is a lot to consider and at Ciceley Commercials Ltd we have a team of experts available with the experience to provide you with all the advice that you need to make an informed decision. 

We work with a select number of lenders, including Mercedes-Benz Financial Services and can advise you on the different finance packages available and which may be the best option for your business. Below you will find a brief overview of the finance packages available. If you would like to know more about any of the finance packages available to you, please contact a member of our in-house finance team today. 

 

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Agility

Agility

An Agility contract is a flexible method of financing a vehicle with an option to full ownership. This agreement defers your decision of whether to purchase, hand back or buy another Mercedes-Benz , until the end of the agreement. The agreement type requires you to pay an up-front deposit and fund the remaining balance over a fixed term at a fixed rate of interest with an agreed Residual Value that forms part of the agreement. An annual mileage suitable to your use must be agreed to allow for an accurate calculation of the vehicles value at the end of the contract. Early settlement is available with some penalty interest payable, and partial settlement is available to customers entering into regulated agreements to help you minimise your debt.

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Hire Purchase (HP)

Hire Purchase (HP)

A Hire Purchase agreement is a traditional and straightforward route to ownership of a vehicle. This product requires you to pay an up-front deposit and fund the remaining balance monthly over a fixed term at a fixed rate of interest. Early settlement is available with some penalty interest payable, and partial settlement is available to customers entering into regulated agreements to help you minimise your debt.

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Operating Lease

Operating Lease

An Operating Lease is a non-ownership solution for those who want to drive and use one of our vehicles over a fixed term, with typically lower monthly rentals than other forms of funding. You pay an initial number of advance rentals followed by monthly rentals until the end of the fixed contracted period and without the commitment of ownership. Full and partial settlement is not available and ending the agreement early will incur a discounted payment of all rentals due.

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Contract Hire

Contract Hire

A Contract Hire agreement gives you the ability to enjoy driving a Mercedes-Benz without having to own the vehicle. With this option, you pay an initial number of advance rentals followed by monthly rentals for a fixed period. This rental includes the cost the vehicle's Road Fund Licence for the duration of the agreement. Full and partial settlement is not available and ending the agreement early will incur a discounted payment of all rentals due.

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Finance Lease

Finance Lease

Aimed at both retail and commercial customers (excluding private individuals and sole traders) but ideally suited to those that are VAT registered. Finance Lease allows the customer to rent or hire a vehicle for a fixed amount of time for a fixed monthly rental. The contract can be structured with or without a balloon payment (residual value). At maturity, the customer is responsible for the sale of the vehicle to an unrelated Third Party and takes the risk of profit or loss, particularly when a Balloon payment is part of the contract structure. Finance lease is not designed for customers who want to own a vehicle. Full and partial settlement is not available and ending the agreement early will incur a discounted payment of all rentals due.

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Product Characteristics and Benefits

  • Agility
  • Hire Purchase
  • Contract Hire
  • Operating Lease
  • Finance Lease

  • Agility is designed to provide an affordable and effective means of funding Mercedes-Benz vehicles for all customer types that are unsure of their End-of-Contract intentions at the point of purchase. Agility is based on a Residual Value underwritten by MBVUK and following the common UK market pattern with end of contract options to suit different customer needs/wants at the point of maturity, i.e. ownership or hand-back or part exchange or extension or refinance.

  • HP is designed to allow you to spread the full capital cost of the vehicle over a period of time in equal proportions, this can include a balloon or residual value

  • Contract Hire allows you (known as the lessee) to choose the vehicle you want, use it for a set period of time with an anticipated mileage and then give it back to the leasing company (known as the lessor) at the end of the period of hire. In a Contract Hire agreements, the Road Fund Licence is included as part of the contract. The risks and rewards are therefore with the lessor under contract hire agreements. The lessee is renting the vehicle from the lessor for a fixed period of time and pays a fixed (normally monthly) rental for the use The lessee is not responsible for the disposal or sale price of the vehicle at the end of the contract – which makes it a very easy and low risk way to run a vehicle.

  • An Operating Lease allows you (known as the lessee) to choose the vehicle you want, use it for a set period of time with an anticipated mileage and then give it back to the leasing company (known as the lessor) at the end of the period of hire.  The risks and rewards are therefore with the lessor. The lessee is renting the vehicle from the lessor for a fixed period of time and pays a fixed (normally monthly) rental for the use. With an Operating Lease, the Road Fund Licence is not included. The lessee is not responsible for the disposal or sale price of the vehicle at the end of the contract – which makes it a very easy and low risk way to run a vehicle.

  • A Finance Lease is aimed at customers who wish to take on the risk/reward of the asset sale at maturity, and who can benefit from reclaiming the VAT on the rentals due up to that point.

Existing Finance Customers

If you currently have a Mercedes-Benz Finance contract in place and you need assistance or want to know what your options are as you approach the end of your contract,  you can either contact our in-house finance team or Mercedes-Benz Financial Services on the details below. 

Mercedes-Benz Financial Services -  0207 660 9993 (Monday to Friday, 8.30am - 5.00pm.) | customerservice.uk@cac.mercedes-benz.com

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