What Is Van Leasing?
It’s the same principle as leasing a car or renting something, with van leasing you pay an initial rental at the start and depending on your lease term – two, three or four years – you’ll pay the same amount each month until the lease finishes. At this point, your van is collected by the funder and you can start your next lease with Leasing Options should you wish.
Key Benefits of Van Leasing
Key benefits of leasing a van 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 that 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.
What to Consider Before Leasing a Van?
There are a number of key considerations that should be factored in before you decide whether to lease a van or not. They include:
Ending a lease early?
If you settle the contract early, you will be required to pay a termination fee.
Excess annual mileage
If you exceed your agreed annual mileage allowance, you will be required to pay an excess mileage fee.
Fair Wear and Tear
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.
How to Lease a Van - A Step-By-Step Guide
1. Search for your ideal van
Search our site and find the perfect van for you. If you’re unsure get in contact with one of our account managers who can help with any questions.
2. Tailor your lease package
We allow you to tailor your lease to suit you and your business needs, from the size of the initial payment to the number of years (term) the lease will be over.
3. Finance checks
Leasing uses a finance company to fund the vehicle and you pay for the privilege of leasing (renting) the vehicle. With this in mind, we and the funder need to make sure the cost of the lease is correct for you and your business. To do this we run a credit check, we may also need some identification from the business owners to do this.
4. Delivery
Once all the paperwork and funding are in place, it’s time for the van to be built and delivered. We arrange all this with yourself and the supplying dealership. The van or pickup is then delivered to your door.
5. Drive
Enjoy your leased van, keep it serviced and maintained and in good condition and return at the end of your lease, we’ll contact you 6 months before your lease is due for renewal to talk about its replacement and get the wheels in motion.
Why Lease with Leasing Options?
We have industry-leading deals with many manufacturers that cannot be beaten, in fact, we’re so confident – we even offer a price match promise!
As accredited van leasing brokers in the UK, we work with leading car manufacturers and several finance companies, including: ALD Automotive, ARVAL UK, Alphabet, Hitachi, Lex Autolease, LeasePlan and Santander amongst others, to get you the best deal on your lease. We are also a proud member of the British Vehicle Leasing and Rental Association (BVRLA).
If you have any questions about van leasing, whether that be about the benefits of leasing over buying or leasing with insurance, we’ve compiled a comprehensive range of guides to answer anything and everything surrounding van leasing.
If there are any questions left unanswered, please don’t hesitate to get in touch with one of our team of friendly, experienced and professional van leasing experts and they’ll be happy to help.
FAQs
How Does a Van Lease Work?
You choose the right van and length of lease which fits your needs and budget, we do an affordability and credit check, then once approved by the funder your new van arrives shortly after. When the lease is up, the van is collected, and you can start the process again.
How Quickly Can I Get Lease Van?
This depends on the build time from the manufacturer, but we do have vans already built and in stock ready for quick delivery.
Do I Have to Pay a Deposit When Leasing a Van?
There is an initial payment, which is three, six, nine or 12 months of payments upfront. The bigger the initial payment, the lower monthly payments can be. It’s all the same amount of credit, you’re just paying a bigger chunk upfront.
Is Van Leasing 100% Tax Deductible?
Van leasing is 100% tax-deductible, and you can claim it all back (if you meet all the criteria). As ever, for any tax advice, it’s important to remember that we are not tax experts therefore you should speak to an accountant for any information and advice.
Does Van Leasing Include Insurance?
No lease comes with insurance as standard but can be added to the lease package. It is best to discuss your requirements with one of our account managers.
Can I Buy My Lease Van?
When it comes to the end of your contract and you're considering your options one of the questions you might have is ‘can I buy my lease van?’.
Unlike some other arrangements such as Personal Contract Hire and Business Contract Hire, you do not have the option to buy the van at the end of the agreement. This makes things even easier at the end of your contract, all you have to do is hand the keys back, without the complications of residual values or balloon payments to worry about.
Can I Lease a Van for A Year?
Here at Leasing Options, we do offer short term leasing deals which can range from three, six and 12 months. Find out more here
What Can I Claim Back on A Leased Van?
Van leasing is 100% tax-deductible, and you can claim it all back (if you meet all the criteria).
Please remember though, for any tax advice it’s important to remember that we are not tax experts therefore you should speak to an accountant for any information and advice.
Can You Put Signage on A Leased Van?
Yes, a van can be sign written but needs removing before the van is returned at the end of the lease.
Can A New Business Lease a Van?
Our guide here explains leasing a Van or Car for a new business.
