Type of Finance


An Operating Lease is a hire contract between you and Sandbach Truck And Van. The rentals are calculated upon the estimated depreciation of the truck over the period of hire, rather than just the initial cost. At the end of the contract you return the truck with no further payments provided that you have performed and carried out all the obligations under the agreement.


A Finance Lease is also a hire contract between you and Sandbach Truck And Van Finance. In this case Sandbach Truck And Van Finance agrees to purchase the truck you have selected and hire it to you at an agreed price over an agreed period of time. You then pay Sandbach Truck And Van Finance rental payments over the term of the lease, normally with several due in advance. At the end of the contract the truck is sold with the majority of sales proceeds treated as a rebate of rentals to you.


A Hire Purchase Plan, which is commonly referred to as Leased Purchase, is a hire contract with the cost of the asset repaid in full over the contract in fixed installments. Once all the payments have been made, title of the asset will pass to you upon exercise of the option to acquire title and payment of the option price. For tax purposes, you are deemed to be the owner of the asset and can therefore claim capital allowances. As VAT is payable on the purchase price, Sandbach Truck And Van Finance will ask for the VAT element to be paid as a deposit.


A Contract Purchase Plan is similar to Hire Purchase, but at the end of the contract you have the option to pay the agreed residual value or return the truck with no further payments subject to fair wear and tear and the agreed mileage not being exceeded.


Contract Hire offers businesses a smart, seamless package of services which allows you to acquire assets without capital outlay or the financial risk of depreciation. Furthermore, with contract hire you can ensure that all of your costs for running the vehicle are covered in a single monthly payment which includes all servicing, maintenance, tyres, administration, vehicle taxation and documentation*.
*Excludes costs for driver, fuel and insurance. Contract package includes all maintenance and repairs subject to reasonable fair wear and tear.


Sandbach Truck and Van Ltd are proud to be working alongside Close Brothers Motor Finance to provide our customers with tailor-made finance packages to suit all budgets.We use their online ‘eClick’ proposal system to minimise the time taken with the proposal of finance deals, and can therefore have vehicle finance agreements completed on the same day (subject to status).

Close Brothers Asset Finance, Wimbledon Bridge House, 1 Hartfield Road, London, SW19 3RU. T: 02083908201 F: 02083995704