When you are buying a new vehicle, expectations of this purchase, the emotions involved, and reasons behind that particular purchase etc differ from person to person. But, if we try and draw a line that demarcates very clearly two varying groups of buying behavior, then that line of demarcation would pass between retail buyers and commercial buyers.
Though each of the two segments, retail and commercial, may be quite heterogeneous within, they are still quite homogeneous when compared with the other group. The reasons, rationale, expectations and emotions are in two opposing directions. The retail buyer would care less for the financial benefit when he buys a car than the commercial buyer. The retail buyer bases his or her decision on the basis of his/her own likes, peer group influence, societal consideration, affordability etc, while a commercial buyer rarely does base his/her purchase decision on emotional factors. It is the financial merit of a particular purchase that is at the top of considerations, while ensuring the purpose behind the purchase is adequately delivered.
Vehicle Leasing is a financial invention that is borne out of the necessity faced by commercial buyers. In a vehicle leasing agreement, a buyer pays an initial down payment and monthly equated payments during the duration of the lease period, which runs typically upto 4 years. There can be different options such as simply returning the vehicle to the lessor at the end of the lease period, or paying a balloon (end settlement) and keeping the vehicle back or selling it to someone else. Leasing is an instrument ideal for commercial buyers such as fleet owners, companies that offer cars to employees as perk, transport companies, etc. They get to use new vehicles every time a lease contract is over. The monthly payment is usually less than the installments on a loan and it is easier to qualify for leasing than a loan.
Hire Purchase (HP), as the name suggests, is an instrument through which a buyer will hire a vehicle so long as he has paid enough rental on the asset that covers the cost and interest of the cost of the asset. Once this status is achieved, the borrower will exercise his right to own the vehicle by paying a nominal fee. It is a form much similar to a leasing agreement, without the balloon.
Swiss Vans Limited is one of the leading van suppliers in the UK, offering vans for lease, hire purchase or direct sales. Swiss Vans stocks all types of vans, pickups, tippers, drop sides etc from all the leading manufacturers, such as Mitsubishi, Mercedes Benz, Fiat, Ford, Volkswagen, Nissan, Renault, Toyota, Peugeot, and more. Swiss Vans has contacts with dealers across the UK and can source almost all makes and models. Since it buys vehicles in bulk at discount prices, this price benefit is passed onto the buyers, making Swiss Vans one of the most cost effective suppliers of vans in the UK. Besides attractive prices, Swiss Vans prides in delivering the best after care, support and advice. Swiss Vans can also customize the vans according to buyers’ need. The hassle free process for applying for a quote makes Swiss Vans a preferred destination for all things vans.