A Complete Guide to Van Leasing

A Complete Guide to Van Leasing

June 6th, 2020

Businesses in a wide variety of industries require reliable vans to operate. From couriers to construction, vans are often the lifeblood of many organisations. However, recent studies suggest that the cost of second-hand vans is continuing to rise. In 2019, reports showed that the price of an average used van rose by more than 10% – in some cases almost 20%. If you’re only buying one van, this might not be the biggest financial hurdle to jump. However, for small businesses which need a fleet of vans, this can stop their operation in its tracks. This is where van leasing comes in.

Leasing a van provides the opportunity for small, medium and large organisations to lease vans and pay a monthly price rather than being burdened by the entire cost in one go. If you’ve been looking into van leasing for your business, we’ve created a brief guide to give you some direction.

Types of Van Leasing Available and The Processes Involved

Depending on the requirements of your business, you will need a different type of lease agreement. A reputable van leasing company will have a range of different lease deals and several vehicles available.

Depending on the van leasing company you are working with, you will have a variety of sized vans available to choose from. Once you’ve picked a vehicle from their range, you will be required to sign an order form which will reserve the van or vans. From there, the van leasing company will run a credit check on you to ensure you are eligible and then request a deposit from you.

Once all of the relevant finance documents have been arranged, you can confirm a delivery date and then off you go!

Some organisations leasing vans for business will only require a short term lease and some will require a longer agreement. These agreements can be as short as a couple of months and as long as a few years. The length of lease and type of vehicle will have an impact on the monthly payments and provides flexibility for different types and sizes of businesses.

Van Leasing Rules and Regulations

There are a few rules and regulations you must keep in mind when leasing a van. The process is similar to renting a car, you’ll have to agree on the period of the contract, the monthly cost as well as an estimate of mileage during that period. Going over your mileage allowance, in some cases, will incur additional payments. This is a common occurrence and may lead to excess mileage charges which can range from as little as 6p to £1 per mile over + VAT.

Depending on the lease agreement, there are also some rules which define what you can do and where you can go with your van lease. Some leases result in the van transferring to the owner at the end of a lease. However, often the finance company will need to sell the vehicle once the lease period has finished. This means that many van lease companies have strict rules about modifications and any repair work that needs to be carried out.

Always check with the van leasing company you are working with and the type of lease you are committed to. Depending on the specific deal and vehicle, you may be subjected to different rules and regulations.

Why You Might Need a Van Leasing Company and How To Find The Best One

Many businesses would benefit from van leasing. For start-up companies that have not got the capital to purchase a fleet of vehicles, van leasing is the perfect solution. These arrangements allow organisations to work effectively, look professional and broaden their horizons without having to pay huge amounts upfront. Manageable monthly payments mean that smaller companies can fulfil their orders without breaking the bank.

When looking to work with a van leasing company for your small business, you should always keep an eye on the quality and volume of vehicles available. If a van leasing company has a wide range of vehicles, it’s a safe bet that they have a good track record. Of course, you should always also keep an eye on price. If something seems too good to be true, it normally is. However, low prices can also indicate strong business relationships with suppliers.

The Benefits of Van Leasing

Choosing van leasing over direct purchasing has many benefits for both individuals and businesses. If you’re thinking of leasing vans for businesses, here’s what to keep in mind.

Van Leasing Allows More Accurate Cost-Planning

One of the many benefits of van leasing is that it allows businesses to plan their overheads more accurately. Using a van leasing company means that you will have crystal clear monthly payments over a designated period. With this information to hand, you can plan for investments and other business-critical payments with better foresight.

Van Leasing Companies Provide Flexibility To Businesses

Once you own a van, upgrading your vehicle to a more fuel-efficient model becomes difficult. As your van decreases in value, it becomes more expensive to upgrade. However, this isn’t an issue when van leasing. The flexibility afforded by van leasing means that you can upgrade your van regularly without incurring huge losses each time.

Excellent Makes and Models at Affordable Prices

Buying high-quality vehicles can be expensive and costs are rising all of the time. However, as a business that relies on quality vans, you won’t want to scrimp either. Van leasing provides the opportunity to use high-quality vehicles at affordable prices, paid throughout a contract.

Van Leasing Is Tax-Deductible

As well as being a cheaper option, van leases are also tax-deductible! Leasing vans for business means that you can save even more through a tax deduction.

There’s Less Hassle When It Comes To Selling

If you’ve bought a van, selling can be a nightmare. As previously mentioned, you’ll have to worry about the value depreciation and you’ll also have to find a buyer. With van leasing, simply send the van back to your van leasing company when your contract expires!

Van Lease Cost: What You Can Expect To Pay

Defining a van lease cost is like asking: ‘how long is a piece of string?’ There is no clearly defined answer and it all depends on the type of van you are looking to lease, the length of the lease and the specific van leasing company you are working with.

Short term lease deals may come at a slightly higher cost per month, and longer lease deals will be less expensive per month but last for much longer. The cost depends on what you require and how long you require it for.

However, to give you a ball-park figure, standard van leasing prices may vary from just £100 per month upwards towards £300-£400 per month. Again, the cost all depends on the type of van being leased and the length of the lease agreement.

Looking For a Professional Van Leasing Company For Your Business? Look No Further.

If you’re looking for a small van lease for domestic needs or you are leasing vans for business, look no further than Global Vans. We’re not your usual van leasing company. We can offer huge savings to our customers by buying our vans to order. This means that, whether you’re leasing vans for business, require a small van lease or a long-term lease, we provide the best van lease cost.

As well as being unbeatable on price, we also have an extensive range of vehicles available. From small van leases to much larger vans, minibuses and pickups, we have a vehicle for almost any requirement.

To find out more about our services, feel free to contact us today. You can visit us at County Gates, Ashton Road, Bristol, BS3 2JH. Alternatively, call us on 0117 962 5314 or email us at [email protected].