What Is 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. It 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.
Benefits Of Van Leasing
There are a number of benefits of leasing a van. They include:
1. Low monthly payments
With leasing, you are only paying for the length of time that you've agreed to lease the van for. You do not pay the full cost of the vehicle, as you would when financing it. The payments are often lower and more manageable, allowing you to keep an eye on your business’s cash flow.
2. A brand-new van of your choice
We only lease new vans, but the way that leasing works means that you can benefit from low payments whilst enjoying a brand-new vehicle, which might work out cheaper than financing the purchase of a slightly older van. Plus, you get all the new tech and gadgets that you would expect from the latest commercial vehicles on the market.
You can make an impression on your customers by driving a new van, whilst also helping the planet by driving with the very latest eco-friendly technology, giving you the peace of mind that your van will be reliable and fuel-efficient.
3. Lower deposit
Deposits in leasing are known as the Initial Payment. You can make three, six, nine or 12 months’ worth of initial payments, which lowers the monthly payments by reducing the amount that the whole lease is costing. Our handy guide explains initial payments in more depth.
4. Avoid extra costs
Cost-wise, everything is fixed with a lease. You forecast the annual mileage and if you don’t exceed it and the van is returned within fair wear and tear guidelines, there will be no extra costs involved.
Driving a new van, you won’t face the repair and maintenance costs of driving a slightly older van.
Road tax is included in your lease's monthly payment - so no worries there - and with new vehicles, an MOT is not needed until after the first three years and by that time you’ll be in another brand-new Van.
With the mileage being forecast for the next number of years, any changes in circumstances and extra mileage covered which takes you over the agreed amount could start to cost you extra money at the end of your agreement.
5. Simple process
Getting yourself behind the wheel of your next van shouldn’t be stressful. That is why we have a simple leasing process that makes it easy for you to start enjoying your new van:
Choose your Van
We make it easy for our customers to browse our website and choose a Van. You can set the parameters for the search by:
- Budget
- Manufacturer
- Model
- Body type
- Special offers
- Detailed search, e.g. fuel type
- In-stock vehicles
You’ll get a full list of vans to choose from, and we have a dedicated team that ensures you get the best possible price. You can start your search here or keep reading to learn the next steps.
Get a quote
Once you’ve identified the van you want to drive for the next few years, you need to decide on some important details that will help us put together a quote for you. This includes choosing the:
- Length of the contract
- Maximum mileage for the duration of the lease
- Extras you want to add on, such as factory options, specifications or a van leasing with insurance and maintenance package
This can be done quickly and easily on our website, or by contacting one of our expert Account Managers who can guide you through the process on the phone while answering any questions you may have.
Apply for finance
As with most finance options, you will be required to pass a credit check. This is to ensure you can pay for the monthly instalments for the full duration of the contract.
Once you have completed the finance proposal form, we then send it to one of our globally recognised financial partners who will take a look at your credit history and make a final decision. We are fortunate enough to have access to the largest number of finance options in the marketplace to assist in funding your next vehicle.
Place the order
If you have successfully passed the credit check it is now time to finalise the deal and to get things ready for you to receive your new van.
A dedicated Account Manager will put together your order details, which will contain all the contract particulars, along with information about the van you have selected.
Your Account Manager will check through the order carefully; we also encourage all customers to do the same before accepting it. After this, the order is complete.
6. Fixed price
Getting a new van is likely to be one of the biggest investments for your business, which is why being able to make affordable, fixed payments is one of the best benefits of leasing a van.
With a lease, everything you pay is agreed upon upfront. There are no grey areas on annual mileage or equity. Other finance products, such as PCP, include the promise of equity at the end of your contract, which may or may not materialise if the value of your vehicle unexpectedly plummets.
We will tell you exactly how much you need to pay each month at the earliest opportunity.
Your monthly costs will not change throughout your contract unless the rate of VAT or vehicle tax increases. You should consider the likelihood of any such increase and factor it into your suitability assessment.
7. Don’t worry about depreciation
Often the costliest part of motoring can be the loss of value that your vehicle experiences over time, otherwise known as ‘depreciation’.
When buying a new van, it makes sense to look at residual values to try and work out how much it might be worth when you come to sell it.
With leasing, the risk associated with this unknown is taken on by the finance company. As your payments are fixed, you know exactly what you have to pay, and at the end of your contract, you simply return the vehicle.
8. Maintenance and Road Tax included
Road tax is included within the fixed monthly lease costs, and if you add a maintenance
package to your lease, you won’t need to worry about repair bills. If the unthinkable does
happen and the van breaks down, manufacturers offer breakdown cover for new vehicles.
9. Tax relief for businesses
With business leasing, you can reclaim up to 100% of the VAT on your contract. VAT claims are also allowed against maintenance costs and any excess mileage incurred during the lease period. Be sure to discuss this with your accountant if you think you may be applicable to this cost-saving.
10. Hassle-free returns
One of the biggest downsides of buying a car is recouping the money when you try to sell it later. But with leasing, you can enjoy a brand-new vehicle of your choice every few years without needing to think about selling it for a good price.
Once your contract ends, you can simply return the vehicle without any extra hassle. The vehicle will undergo a standard maintenance check to ensure you have not exceeded the Fair Wear and Tear guidelines or surpassed your agreed mileage limit.
Afterwards, it is entirely up to you what happens next. Of course, you can always choose another new car and enjoy the benefits of leasing all over again.
Key considerations
Before you take out a lease contract, it is also important to consider that:
- If you settle the contract early, you will be required to pay a termination fee.
- If you exceed your agreed annual mileage allowance, you will be required to pay an excess mileage fee.
- At the end of your contract, you will be required to pay for any damage to the vehicle, with the exception of Fair Wear and Tear.
With a plethora of different options available, like PCP, PCH, bank loans and hire purchase, trying to find the best way to pay for your vehicle can be confusing. The consensus is that buying is always better in the long run, but in some cases, it can make more sense to lease things. Billionaire oil tycoon Paul Getty once said, ‘if it appreciates, buy it. If it depreciates, lease it.’
