The Complete Guide To Van Leasing
If your business requires regular deliveries and collections or transports tools and items, you’ll need a van or fleet for long-term support.
Van leasing is an affordable option for companies of all sizes. Read our guide to learn how it works and decide if it’s right for you.
How does van leasing work?
Van leasing lets you drive the latest vehicles for a low monthly cost over a fixed period. Whether your business needs one van or a full fleet, you can ‘rent’ it for an agreed time, then return the vehicle(s) at the end of your contract.
When you return the van at the end of the agreement, there’s 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
- How long you wish to lease it for
- An additional maintenance and insurance package
Who can lease a van?
Most businesses can lease a van, but it’s especially popular with limited companies, sole traders and partnerships.
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?
Our van contracts are usually available for business leasing only. However, while the van is paid for through your company, 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
Which lease vans are available?
We have a huge range of the latest high-spec vans, all of which are available for great prices. Choose from popular brands like:
We are confident we have a van to suit your needs and budget, with a wide variety of trims and extras available too. Start looking for the perfect lease van now, or read the benefits below if you need to know more.
Benefits of van leasing
Van leasing is becoming the preferred way for business owners to use vehicles that will help and support their company activities. Here are some of the main benefits you get from using Leasing Options.
You will be required to pay an initial rental, which will usually be anywhere between 1-12 months’ worth of rentals. From the very start you will know how much needs to be paid and how much is remaining on the contract. There is no interest involved or any fluctuating costs over the duration of the lease.
Compared to buying a van on finance, you will often end up paying far less. If the van is returned in good condition, you will also avoid any additional charges related to excess wear and tear and mileage.
Avoid owning a depreciating asset
A van immediately begins to depreciate as soon as you start to drive it. This means the value begins to lower quite significantly as the years pass by. Leasing a van means you don’t have to worry about any of this, so once the contract is over, you simply hand the van back and can even take out a brand new one if you wish.
Less maintenance and repairs
The expense of owning a van doesn’t just come down to fuel, VAT and insurance. You will also have to pay for MOTs and any repairs that are needed over time, which can add a lot of unneeded costs.
At Leasing Options, we have an exclusive Just Fuel It package that offers an insured van, with maintenance and repair services included in your monthly rentals. And if you only lease for three years, you won’t have to worry about getting an MOT at all.
Access to the latest vans
Because van leasing can be a cheaper option, customers are often able to afford a better van than they would when buying on finance or purchasing outright. This is also ideal for companies who need more than one van, as there is no need to downgrade just to find the models or types which fit into your budget.
There are a number of tax benefits available for businesses leasing a van. Depending if the van is being used outside of work or not, you may be able to claim back 100% of the VAT costs. You might also be able to claim back VAT related to maintenance packages and any excess mileage charges that are applied at the end of the contract.
Know which van you’re looking for? Contact our helpful, dedicated team and see how you can get a brand-new vehicle for less Leasing Options. What’s more, our affordable lease contracts won’t be beaten with our Price Match Promise, so you know you’ll always receive our best value.