If your business is growing or you simply need a new, reliable vehicle for your fleet, you’ll likely be faced with a big decision: Should you rent or buy a van?
The right decision will depend on your specific situation, but you’ll want to make the choice that suits your needs, budget, and long-term goals.
Thankfully, you’re in the right place. When it comes to vans, we know our stuff – from hires to outright sales, we’ve got a host of experience that can help you make the right choice.
In this blog, we’ll delve into the differences between van leasing and purchasing, weighing the advantages and disadvantages of each option to help you make a confident choice.
- What’s the difference between leasing and purchasing a van?
- What are the pros and cons of van leasing?
- What are the pros and cons of buying a van?
- Can you lease a van with bad credit?
- How much does van leasing cost?
- Who can lease a van?
- What maintenance costs are included with van leasing?
What’s the difference between leasing and purchasing a van?
Van leasing is a financing option that allows you to use a van for an agreed-upon period of time while making regular payments to the leasing company. At the end of the period, you don’t own the van. On the other hand, when you purchase a van you own it outright. You can either pay up front or use a financing plan that lets you spread the cost.
What are the pros and cons of van leasing?
Leasing a van is a popular choice for many businesses all over the UK, but why? Let’s take a closer look.
The advantages of leasing a van
- Lower Initial Costs: Van leasing comes with a smaller upfront payment compared to purchasing, freeing up your cash for other business expenses.
- Fixed Monthly Payments: With leasing, you know exactly what your monthly costs will be, making it easier to budget and plan your business’s finances.
- Access to Newer Models: Leasing allows you to drive the latest van models with advanced features.
- Flexibility: At the end of the lease term, you can either choose to extend your lease, take out a new lease on a different model, or simply move on. The ball is always in your court and you get to choose what’s best for your business.
The disadvantages of leasing a van
- Mileage Restrictions: Sometimes, leasing contracts come with mileage restrictions. At First Step, though, we keep things flexible – just let us know if you need more than the standard 10,000 annual limit.
- Customisations: Since you don’t own the van, you might be restricted in the type of customisations you can make – like paintwork. If you hand back the van with damages, such as scratches or dents, you will usually be charged for this.
What are the pros and cons of buying a van?
While leasing a van tends to be the go-to choice, some businesses still prefer to own their fleet.
The advantages of purchasing a van
- Ownership: Buying a van gives you complete ownership, allowing you to customise it and use it as you see fit.
- Long-term Investment: Purchasing a van can be seen as a long-term investment, as you can use it for as long as you need without a future return date.
- No Mileage Restrictions: Unlike leasing, owning a van means you won’t have mileage restrictions.
The disadvantages of purchasing a van
- Higher Upfront Costs: Buying a van typically includes a large upfront payment – you’ll need to organise your finances and work within your budget.
- Depreciation: Over time, the value of your van will depreciate, which can impact its resale value should you decide to sell it in the future.
- Maintenance and Repairs: As the owner, you are responsible for all maintenance and repair costs, which can add up over time, especially for older vehicles.
- Selling: If you ever decide that you want a newer model, you will have to deal with the headache of selling your current van, which can take a lot of time and effort.
Can you lease a van with bad credit?
Leasing a van with bad credit can be tricky, but it’s not impossible. Some leasing companies offer options specifically tailored for people or businesses with less-than-perfect credit. If you’re looking for a van, we have a full range of leasing options for all budgets.
How much does van leasing cost?
The cost of van leasing varies based on a few different things, including the:
- Type of van
- Lease term
- Mileage allowance
Typically, though, leasing costs are lower than monthly loan payments for a purchased van. Ready for a free quote? Get in touch today and our team can help get you started.
Who can lease a van?
In the UK, the requirements for who can lease a van can vary depending on the leasing company. However there are a few common conditions that you can keep in mind:
- Most leasing companies have an age limit of 18 years old. However, some lease agreements may have a minimum age requirement of 21 or 25.
- The driver needs a valid UK driving licence for the specific van category you are looking at.
- Drivers typically need proof of ID, such as a valid passport, along with proof of address, such as a utility bill or bank statement.
- When leasing a van for a business, you may have to provide additional information, such as proof of business registration, VAT registration (if applicable), and business financial statements or bank statements.
- You’ll also need to arrange insurance for the duration of the lease term and provide proof before the vehicle is delivered.
Lease your business van with First Step
At First Step, we offer a range of leasing options that can be tailored to your specific needs, making our services accessible for all businesses. Regardless of your industry or business size, van leasing provides the flexibility and convenience you need without the upfront costs or long-term commitment of purchasing.
Want to buy a vehicle instead? Take a look at our full selection of used vans. They’ve gone through rigorous testing and are ready to take you and your business on the road. If you need some help, give our team of experts a call and they can talk you through your options.