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How does van leasing work?

July 12th, 2020

How Does Van Leasing Work?

Van leasing works as a long-term rental agreement providing exclusive use of a van or for a specified period of time. At the start of the contract, the customer will often pay an initial rental, followed by a series of monthly payments for a period of up to a few years. At the end of the contract, the van is handed back to the finance provider without any further obligations, leaving the customer free to lease or purchase another vehicle.

Over the last few years, van leasing has grown incredibly popular with sole traders, partnerships and limited companies as it offers them an alternative, often more cost-effective funding solution to buying a new van with a bank loan or dealer finance. With a van lease agreement, the customer also doesn’t need to worry about depreciation or selling the van as this responsibility lies with the finance provider.

Below we list some of the most significant reasons why you may wish to consider van leasing.

Main benefits of van leasing:

  • Low initial rental helps to prevent huge up-front costs
  • Fixed monthly rentals for the term of the lease make budget planning easier
  • Flexible duration and mileage terms to reach your needs
  • Maintenance, servicing and tyre package can be included in a monthly fee
  • Road tax is included for the duration of the agreement
  • No depreciation risks or disposal concerns
  • Full manufacturer warranty offered as standard on all vehicles
  • Enjoy a new van every few years

Main considerations of van leasing:

  • The monthly cost is based on mileage
  • Excess mileage charges are applicable if you exceed the agreed mileage allowance
  • You need to return the van in good condition as charges will apply for any damage over and or general wear-and-tear
  • Vehicles must be insured with a comprehensive cover
  • You do not own the van

Why Consider Leasing A Van?

  • An Affordable Fixed Monthly Payment, this is one of the main benefits of leasing. It allows you to stay on top of your monthly budget and keep your outgoings low by spreading your payments over time
  • Not Dealing With A Depreciated Asset
  • Like almost all vehicles, vans depreciate in value over time. Leasing means you’re not left with a used van to sell. You simply give the van back at the end of your contact and then you can upgrade to a brand new model – just like you would with a mobile phone
  • Breakdown cover is often provided

How To Lease A Van: Step-By-Step Process

Choose Your Van

The first step is to pick the van you like. You’ll find a wide range of the latest models to present your business well.

Pick Your Lease Package

Next up you choose the type of lease you want to use, how long you’d like to lease for, typically a few years. and how many miles you estimate you’ll drive in that time.

Offer Your Financial Details

You’ll then often give some personal details over. They may do a credit check to ensure you’re able to afford the monthly payments. You’ll specify how much you can afford as your initial payment and they’ll often take holding deposits to secure your new van.

Van Delivery

Once all the paperwork is all done, your van will be delivered from the dealer or you’ll pick it up.

Enjoy Your Van For the Length Of Your Lease Contract

This is it, it really is that simple! You’ll keep your business moving for the length of your van lease.

Return Your Lease Van

Lastly, at the end of the lease, you just hand the van back and, if you want to, you can upgrade and begin the process all over again!

Hopefully, this has cleared any queries you may have had about van leasing. Though it isn’t talked about so frequently, van leasing is becoming a very good choice for many. The fact that there are fixed monthly payments is very appealing, as is the idea that you don’t need to worry about depreciation or if you sell your vehicle on, any equity is yours to keep. As well as this, you can’t really dispute the business benefits of leasing a van.

Quality van lease service and van finance deals

Leasing is becoming a growing method of financing vans principally because of its low-cost upfront payments and its beneficial tax treatment. Traditionally businesses used to either buy or hire to finance their vans however as people have got better educated about what leasing can offer the trend has moved this way.

Securing van lease deals is a relatively simple process. Working with a leasing company, you will identify the van you would like to lease and the type of leasing deals you require. For example, you couple opt for cheap van lease deals, a long term van lease or large van leasing. Once you have the credit in place, the lease company you are working with will purchase the van on your behalf and become the technical owners of the van. From there, you will pay rental payments on an agreed schedule for an agreed period of time.

This leasing structure allows companies to have far greater control over their finances as well as flexibility. Rather than having to pay thousands of pounds to purchase a fleet of vehicles, businesses can lease and pay on a monthly basis. If you’re looking for van lease deals for your business from the professionals, get in touch with Global Vans. We are a leading van broker who has operated for in excess of 17 years. We deliver in excess of 4000 vans each year which gives us significant discounts with manufacturers and competitive rates with funders. Our staff are well trained and we aim to provide the best service for you giving the right solution and most competitive price. To find out more, please get in touch.

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