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How Does Van Leasing Work?

21 December 2023

group of white small vans

Have you ever considered getting a van for personal use or for your business but felt tangled in the dilemma of buying vs. leasing? Today, we’ll break down the concept of van leasing, exploring its benefits, costs, and how it stacks up against buying. By the end, you’ll have a clearer understanding of which option might suit you best.

Key Points

What is Van Leasing?

Van leasing is a contract where you pay to use a van for a set period, typically between 2 to 5 years. You make regular payments to use the van but don’t own it. At the end of the lease, you can return the van, extend the lease or take out a new lease on a different model.

The Benefits of Van Leasing

Van leasing comes with a whole range of benefits; here’s a look at the main ones:

Should I Lease or Buy a Van?

The decision to lease or buy a van hinges on your needs, financial situation, and how much you’ll use the van. Leasing can be more cost-effective if you like to upgrade your van regularly, avoid the hassle of resale, and avoid dealing with a huge upfront payment. However, buying might be better if you plan to keep the van for a long time and don’t want to worry about mileage limits or customisation restrictions.

Do You Own a Van After a Finance Lease?

With a finance lease, you pay for the van in monthly instalments and then can buy it at the end of the lease term for a residual value. So, technically, you can own the van after the lease, provided you pay the final amount.

What Happens at the End of a Van Lease?

At the end of the lease, you can either return the van, extend the lease, or, in some cases, purchase it. Your choice depends on your contract type and personal or business needs. If you return the van, you are free to take out a new lease on a different model, letting you upgrade your vehicle without the big initial cost of purchasing.

What Does It Typically Cost to Lease a Van?

The cost of leasing a van varies widely based on the van model, lease length, mileage limit, and credit score. Monthly payments typically sit at around a few hundred pounds. Struggling to find a van that fits your budget? Give our team a call – our extensive range of vans from leading manufacturers is bound to have what you need.

Can You Lease with Bad Credit?

Yes, but it might be more challenging. Leasing companies usually require a good credit score because the risk is higher for them. If you have bad credit, you might face higher interest rates or need a larger down payment. Don’t be disheartened, though – our team will work with you to ensure you get what you need wherever possible.

Can You Claim Payments Off VAT?

Yes, if you’re leasing a van for business purposes, you can typically claim the VAT on your lease payments, provided your business is VAT-registered. This can make leasing an attractive option for many businesses.

Different Business Van Leasing Contracts

There are a few different types of van leasing contracts:

Personal Van Leasing Contracts

Like with business contracts, there are a few different types of personal van leasing options:

Choose First Step For Your Next Van Lease

Deciding on where to lease your next van? At First Step, we offer a wide range of vans from the best brands, ensuring you get the quality and variety you’re looking for. Whether you need a small van for city jobs or a larger one for bigger tasks, we have you covered.

We focus on offering competitive rates and flexible terms to fit your budget and leasing needs. Contact us today for your free quote.

First Step UK Limited is authorised and regulated by the Financial Conduct Authority, our FCA Firm Reference Number is 654527. First Step UK is a credit broker not a lender. Vehicles shown are for illustration purposes only. All offers are subject to change at any time and are subject to finance approval and vehicle availability. First Step UK Limited registered address is 70 Market Street, Tottington, Bury, BL8 3LJ Registered in England.

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