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Van Lease 101: Everything You Need to Know Before Signing

June 6th, 2023

Taking out a van lease has become an increasingly popular option for businesses. Usually lasting between 2 and 5 years, a van lease allows you to pay a fixed monthly rate towards the use of a new van.

We have been industry leaders for over 20 years, giving us a wealth of leasing knowledge and practical experience.  Let us walk you through the types of van lease, what to consider, and the benefits leasing can afford your business – so you can get the best deal!

Types of Van Lease

Hire Purchase:

  • Ownership at the end of the lease
  • Fixed monthly cost
  • VAT paid upfront in full
  • RFL included in the first contracted year
  • 2-5 years
  • No excess mileage or damage charges

Finance Lease:

  • Flexible end of lease options
  • Fixed monthly cost
  • VAT spread over the length of lease
  • VAT reclaimable if registered
  • 2-5 years
  • No excess mileage or damage charges

Contract Hire:

  • No option for ownership – so no disposal issues
  • Fixed monthly cost
  • VAT spread over the length of lease
  • VAT reclaimable if registered
  • 2-5 years
  • Excess mileage and damage charges applicable

Considerations of a Van Lease

 As a business owner, you want to be appraised of all of the considerations of a van lease, not just the benefits. We think leasing is a great idea, but its really important that you have the full picture, so you can make the best decisions for your business!

  • If you’re quoted mileage is high, the value of the van at the end of the lease will be lower. This will make your monthly payments higher!
  • Excess mileage charges will apply if the contract has agreed mileage limits
  • Fair Wear and Tear is acceptable, but you’ll be charged if your van is returned with excess damage.
  • Fully comprehensive insurance is required but not included in your lease.

Benefits of a Van Lease

Whichever financing option you choose, there are plenty of benefits to your business. Choosing a van lease rather than buying means you save money on upfront costs, while also benefitting from the range of leasing deals available to you as a business owner.

A van lease deals allow you to spread the cost of your new vehicle across your agreed term, allowing you to plan in the fixed monthly costs to your business outgoings. You will also be able to afford a higher quality and spec of vehicle than you would, had you bought outright. This can only benefit your business – by making sure you look professional on the road, and giving a greater level of driver comfort.

Another benefit of new van leasing, is that new vehicles are subject to manufacturer’s warranty – giving you peace of mind in the reliability of your vehicle, and that you won’t incur any unexpected costs should it develop issues.

Take a look at our Specials for a vehicle that would suit your business! If you still have questions on leasing, or you’d just like to talk it through- Contact us or call 01179625314

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