How does van leasing work?
Business owners get to drive away the latest van models for a low monthly rental cost over a fixed period. All you have to do is pick the van you want to lease, add on any extras, go through a credit and affordability check and a new van will be ordered and delivered straight to your door.
Limited companies, sole traders and partnerships tend to take out this type of contract, which is also sometimes known as contract hire. This lease requires you to return the van at the end of the agreement, with no further commitment needed. You then have the option to either walk away completely (subject to any excess mileage and vehicle damage) or take up a new business van lease if you wish.
The monthly cost for the rental will be based on the market value of the van, the mileage agreed in the contract, and how long you wish to lease it for. There are also additional maintenance and servicing packages available, which can be included in your monthly payments.
What’s included in a van lease?
Not only do you get a brand new van that will provide invaluable support to your business, but there are also a number of added extras that are included:
- Free UK mainland delivery to a designated address
- Road tax for the duration of the lease
- Full UK manufacturer’s warranty
- Breakdown assistance for the first year
- Part exchange available on some models
Can I lease a van for personal or business use?
At Leasing Options, our van contracts are usually available for business leasing only. However, while the van is being paid for through the business, this does not mean it cannot be used for personal use outside of working hours.
You should also bear in mind that if the van is not used for non-working purposes at all, you will be eligible to apply for a higher tax rebate in your annual returns.
What happens when my van lease ends?
Once your business van lease has finished, we will arrange a free collection, at this point the collection driver will need to inspect the vehicle for wear and tear and total mileage driven. The British Vehicle Rental and Leasing Association (BVRLA) have Fair Wear & Tear Standard guidelines, which we provide to all of our customers.
These checks are to ensure there is no excess damage to the vehicle that will require us to repair the van beyond reason. We expect standard wear and tear to occur during the course of the lease, but there may be additional charges for any repairs that have been caused through poor treatment, negligent behaviour or by an accident.
The odometer will also be checked to see how far the van has been driven, before comparing it against the mileage cap agreed when the lease began. If the mileage is excessively over the limit, you may be required to pay the difference in costs. However, this could be as little as 5p per extra mile.
Before we collect the vehicle, we will get in touch with you to discuss what to do next. This will depend on the type of contract you originally took out. The options available will either be to walk away with no further commitment or sign up for a new lease on a brand new van. Your account manager will be able to explain the options that are available, so you can make an informed decision.