If you’re thinking about leasing a van for your work or personal needs, it’s good to understand how it works before you make a decision. Things like cost, ownership and credit will all impact whether you think this is the best choice for you.
In this blog, we’ll take a closer look at van leasing, giving you everything you need to know to make a confident decision.
- What is Van Leasing?
- What Are The Benefits of Van Leasing?
- Different Business Van Leasing Contracts
- Personal Van Leasing Contracts
- Should I Lease or Buy a Van?
- Do You Own a Van After a Finance Lease?
- What Happens at the End of a Van Lease?
- What Does It Typically Cost to Lease a Van?
- Can You Lease with Bad Credit?
- Can You Claim Payments Off VAT?
- Choose First Step For Your Next Van Lease
What is Van Leasing?
Van leasing is a contract where you pay to use a van for a set period – our terms run from 12 months to 60 months. 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.
What Are The Benefits of Van Leasing?
Van leasing comes with a whole range of benefits; here’s a look at the main ones:
Lower Upfront Costs
Leasing a van often requires a smaller initial payment compared to buying.
Predictable Monthly Expenses
Leasing offers fixed monthly payments, making budgeting easier.
Newer Models
Leasing allows you to drive newer vans every few years without the hassle of selling an old one.
Maintenance Packages
Many lease agreements come with maintenance packages, reducing the worry about upkeep costs.
Different Business Van Leasing Contracts
There are a few different types of van leasing contracts for businesses:
- Contract Hire: You rent the van for a fixed period and return it at the end, with no option to buy.
- Contract Purchase: Similar to contract hire but with the option to purchase the van at the end of the lease term.
- Lease Purchase: You commit to purchasing the van at the end of the lease, often with a balloon payment.
Personal Van Leasing Contracts
Like with business contracts, there are a few different types of personal van leasing options:
- Personal Contract Hire (PCH): Like a business contract hire but for individuals.
- Personal Contract Purchase (PCP): Allows individuals the option to buy the van at the end of the lease.
- Personal Lease Purchase: Similar to a lease purchase but tailored for personal use, including a balloon payment if you choose to buy the van.
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 – that’s any leftover value that you haven’t already paid off with your monthly instalments. 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 a standard lease, you can either return the van, extend the lease, or 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 things like the:
- Van model
- Lease length
- Mileage limit
- Credit score
Struggling to find a van that fits your budget? Give our team a call – we have a full range of vans and something for every price range.
Can You Lease with Bad Credit?
Yes, but it might be a little trickier. Leasing companies usually prefer a good credit score because the risk is lower for them. If you have bad credit, you might have higher interest rates or need a larger down payment. Don’t be disheartened, though – our team will work with you to make sure 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.
Choose First Step For Your Next Van Lease
Ready to take the next step? We offer a wide range of vans from the best brands, guaranteeing you get the quality and variety you’re looking for. Whether you need a small van for city jobs or a larger one for longer trips, we have you covered. Contact us today for a free quote.