The Mercedes Sprinter has become increasingly favoured since its introduction into the market in 1995. Utilised for many different applications, notably in the luxury sector – the Sprinter offers an elevated level of comfort and customisable features, making it a popular choice for many high-end focused businesses and individuals. As prices continue to rise, financing has become an significantly popular option for businesses to access these vehicles without the requirement for large upfront investment. If you’re considering purchasing a Mercedes Sprinter on finance for your business, here’s a guide to help you:
Financing a Mercedes Sprinter Through Asset Finance
Asset finance involves a lender purchasing the vehicle, allowing your business to lease it from them over a set period.
Your primary options are Vehicle Asset Finance or Business Contract Hire. The two financial products have distinct differences:
Advantages of Asset Finance for a Mercedes Sprinter:
- No large upfront payment, helping your business to preserve cash flow to invest elsewhere in the business
- Lease payments are often tax deductible: however, to be 100% sure, check with your accountant
- Allows you flexibility when deciding what to do with the vehicle at the end of the agreement
- Customisable agreement terms to fit your specific business requirements
- Well-suited for purchasing a fleet of Mercedes Sprinters or used Mercedes Sprinters
Aspects to Consider:
- The vehicle remains the lender’s property until you purchase it outright (if you wish to do so)
- The application process may involve more paperwork compared to personal car finance
Using asset finance to acquire a commercial Mercedes Sprinter could be the most suitable option, especially if you need to upgrade or modify the vehicle for specific business purposes. For example if you require a custom luxury fit-out to transport individuals, asset finance can cover both the vehicle and the modifications.
Finance a Mercedes Sprinter through Business Contract Hire
Business Contract Hire is similar to personal car leasing. You select your deposit and mileage, then pay fixed monthly instalments for a set period. The lease is under your company’s name, and at the end of the term, the vehicle is returned to the leasing company.
Advantages of Business Contract Hire:
- No depreciation costs attached, because you don’t own the asset
- Allows for a lower initial deposit
- Monthly payments may be tax-deductible if the vehicle is used solely for business
- Short lease terms (typically 2-5 years) allow for regular upgrades, keeping your business up to date with the latest technology and Mercedes Sprinter features
- Lender covers the cost of maintenance as they are the owner of the vehicle
- Fixed costs can help to simplify your financial forecasting
Aspects to Consider:
- The leasing company retains ownership of the vehicle
- Mileage restrictions apply, with potential penalties for exceeding mileage limits
- Early termination fees may apply on a case-by-case basis
Other types of commercial Mercedes Sprinter finance
Finance Lease: Similar to business contract hire, but with the option to purchase the vehicle at the end of the agreement.
Sale and Leaseback: You sell your Mercedes Sprinter to a finance company, and then you lease the vehicle back from the finance company for an agreed period of time.
Which Option is Right for Your Business?
We provide finance solutions for:
- Sole traders
- Limited companies
- VAT-registered businesses
- Partnerships
- Public listed companies
- Charities
Choose Asset Finance If:
- You require flexibility in repayment terms, and the deposit amount
- You wish to add vehicle modifications
- You are looking to purchase a fleet of Mercedes Sprinters
- You’re looking to purchase a used Mercedes Sprinter
For instance, a courier business that needs multiple Mercedes Sprinter vans with custom storage solutions may find asset finance the best option.
Choose Business Contract Hire If:
- You want a hassle-free process to lease a new Mercedes Sprinter
- You want to avoid the responsibilities of vehicle ownership – the lender covers any maintenance costs and
Is the Mercedes Sprinter the Right Vehicle for Your Business?
The Mercedes Sprinter is a comfortable and versatile commercial van, offering a pleasant driving and passenger experience with impressive fuel efficiency. Given the Sprinter’s variety of models, (Sprinter Panel Van and Crew Van, in various sizes and with a plethora of customisable features) it caters to a wide range of industries, from courier services to luxury transport, requiring a practical and professional choice.
If you’re ready to finance a Mercedes Sprinter for your business, contact Mill Wood today to explore your options.
