Van Leasing Frequently Asked Questions

• How does FlexLease work?

  1. Flexibility is built into the contract from the start. Instead of often nontransparent “calculations,” a repayment plan is agreed that is as transparent as possible. Since not every car is used the same, there is also an optimized, individual financing contract for each vehicle.

  2. During the term, open-end leasing offers reliably consistent monthly payments in which all services are clearly defined. The term is flexible beginning at as early as three months. After this time, the contract can be terminated at any time by settling the remaining debt—the vehicle belongs to you.

  3. After the end of the term, there is no deduction for loss of value with us, as no loss of value is reflected. You can continue driving the vehicle, sell it yourself or have us sell it. Regardless, the sales proceeds belong to you.

• What do I have to consider when leasing a van?

  Leasing protects your company’s liquidity—at least that’s what they say. But you also have to choose the right financing model, otherwise you might end up paying too much. Hidden items in the fine print and non-transparent full-service rates often turn out to be cost drivers.

  The classic closed-end lease, also known as a “mileage-based lease,” is particularly popular in Germany. Closed-end van leases appear to be cheap and clearly regulated. However, the company is often bound by a rigid, predetermined contract with fixed mileage parameters. In the request for tenders, only the lowest leasing rate is taken into account. But the devil is in the details—more precisely in the contracts—because closed-end leases can incur numerous costs that are not always recognizable at first glance in the clauses of the contract. Additional services, such as maintenance, repairs, tires, insurance, etc. are included in the rate. This poses a simple but unsolvable problem for those responsible for costs. Even when the contract has been signed, the customer cannot understand what the rate comprises, whether the services are priced too high or whether the calculation assumes a residual value that is too low. Finally, any deviations are penalized by the lessors with contractual penalties and expensive modifications.

  But is this really necessary? Or are there now alternatives on the market that offer more flexibility and transparency in the van leasing sector?
  A more financially attractive option is the so-called open-end model, in which an “open” designation of the contract parameters and billing is created based on actual costs. Lessees can flexibly adjust the financing period to their needs and terminate the lease at any time after three months by paying the remaining debt, without having to pay penalties or hefty bills for tiny scratches.

  Roughly speaking, the main differences between closed-end and open-end van leases lie in the flexibility and regulation of sales revenue. In this regard, with an open-end lease, you do not have to determine in advance the service life, or the number of miles driven. This is often very practical, as the exact use of a fleet of vans is difficult to predict. With an open-end lease, this is quite simple, but with a closed-end lease, on the other hand, it is only possible under certain conditions.

  In the following table, we have compiled for you a clear overview of the most important decision-making criteria when choosing each financing model, and what advantages and disadvantages the individual models have:

  https://www.arifleet.de/de/ressourcen/bibliothek/Infografiken/die-gaengigsten-flottenfinanzierungsformen-im-ueberblick

• What is the best solution for van leasing?

  To create more room for your business to maneuver, Holman has developed FlexLease, a flexible open-end full-amortization contract that focuses on maximum transparency in the repayment plan instead of nontransparent calculations. During the term, open-end leasing offers reliably consistent monthly payments for your van, in which all services are clearly defined. The term is flexible beginning at three months—after this time the contract can be terminated at any time by settling the remaining debt. No penalties for premature termination. No assignment of damage costs. After the end of the term, there is no deduction for loss of value, as no loss of value is reflected. In conjunction with freely selectable and transparently billed services, such as service, maintenance and repairs, this systematically reduces your total cost of ownership (TCO). 

  Choose a leasing offer and a leasing model that currently best suit your mobility needs, and let our fleet management experts advise you. We are happy to help you calculate the benefits of your van lease. Even if the full amortization contract is not the optimal solution for your van, we will find the right type of financing for you. You can count on it.

• Is van leasing also suitable for tradespeople, for example for panel vans?

  Yes, Holman’s van leasing is also suitable for tradespeople; the benefits can be used in any industry. You have to decide whether, for example, you only need a panel van, a van or if you want to maintain an entire fleet. Individual vehicles and mini fleets are usually leased through the manufacturer. We at Holman specialize in fleets of 100 vehicles or more.

• Is van leasing also suitable for people who are self-employed?

  Yes, van leasing is also suitable for people who are self-employed; the advantages can also benefit sole proprietors. Commercial customers and self-employed workers rarely maintain large fleets; they usually only need a car. Individual vehicles and mini fleets are usually leased in the form of new cars through the manufacturer or a local bank, but there are also other providers. A fleet manager is not common because of the small number of vehicles.