Both can spread the cost of a business van, but they work differently at the end of the agreement and place different risks on the business.
Contract hire is mainly about use
With contract hire, the business normally pays rentals for an agreed term and mileage and returns the van at the end, subject to the agreement and condition standards.
Finance lease leaves more disposal exposure
A finance lease can give the business more involvement in the vehicle’s residual value or disposal. Read the end-of-term provisions carefully rather than judging the deal on the monthly rental.
Mileage and condition matter
High excess mileage or poor condition can make an apparently cheap agreement expensive. Use realistic mileage forecasts and understand fair wear and tear before signing.
Match the agreement to the replacement plan
If you prefer predictable replacement every few years, one structure may suit better than a business that keeps vans for longer or needs more flexibility.