Need a new van? Leasing gets you the latest vans for a fraction of the price. Here, Vanparison explains the ins and outs of van leasing. Read on to find out more.
A van – your mobile toolbox, your office on wheels, the backbone of your business. It takes you to jobs, carries your gear, and keeps your work running smoothly. When it’s time for a new one, you want something reliable, efficient, and cost-effective. Buying outright? That’s a hefty chunk of cash gone. But what if there was another way? Enter leasing.
Leasing gets you behind the wheel of the latest vans without the upfront commitment. It spreads payments into manageable chunks, helps cash flow, and gives you access to the newest, fuel-efficient vehicles packed with the latest security tech. But what’s leasing, and how does it work?
- What is leasing?
- Types of Leasing: Which one is right for you?
- Other finance options
- Is leasing right for you?
What is leasing?
Leasing lets you drive a new van without the upfront cost of buying. You pay a fixed monthly amount to use the van. At the end, you return it, and move on. The best part? You only pay for the van’s predicted depreciation rather than the full purchase price. This makes leasing one of the most affordable ways to drive a brand-new van.
Leasing agreements include at least the first years road tax, and you can add maintenance packages to avoid surprise garage bills. There are some things to watch out for. Including your mileage limit—go over it, and you’ll have a fee.
It’s also important to keep the Fair Wear and Tear Policy in mind. Your van will likely get a few scuffs over the years, all lease vans come with ply lining to protect it from tools clanging around.
What about signage?
Go ahead, get your van branded up. Just make sure it’s removed at the end of your contract. Anything that falls outside of fair wear and tear will be charged for at the end of your lease – so, if this is a concern, a Finance Lease might be better.
Types of Leasing: Which One is Right for You?
Leasing isn’t one-size-fits-all. There are different options, including:
Finance Lease
A popular option for businesses seeking maximum flexibility. You make fixed monthly payments, and at the end of the term, you sell the van to a third party and keep the profits. RFL (Road Tax) is included for the first year, but the funder will invoice you for road tax annually after that.
You won’t own the van outright, but once you’ve paid the balloon payment, you can extend the lease for another 12 months for a small fee. You can offset 100% of your monthly lease payments against taxable profits for commercial vehicles. If VAT registered, you can reclaim VAT too.
Operating Lease
Like Contract Hire, but only the first year’s road tax is included. You won’t own the van, but having the logbook makes life easier for handling permits, plate transfers, or taking your van abroad.
Contract Hire
- Business Contract Hire (BCH) – For businesses. A straightforward lease where you pay a monthly fee and return the van at the end
- Personal Contract Hire (PCH) – For individuals
With BCH, lease payments are considered a business expense, reducing your tax bill. If your van emits less than 110g/km of CO2, you can claim 100% of your lease payments. If it’s higher, you can claim 85%. Fuel and insurance costs? Also tax-deductible.
Leasing doesn’t just save you money – it saves financial headaches.
Other finance options
Leasing not quite right for you? There are other ways to finance a new vehicle, such as:
Contract Purchase
- Business Contract Purchase (BCP) – Pay monthly, then decide whether to buy the van with a final balloon payment.
- Personal Contract Purchase (PCP) – For individuals.
BCP may seem attractive because of the option to own the van at the end, but remember—you could end up paying more in interest.
Hire Purchase
More akin to a loan, Hire Purchase is a method of vehicle ownership which allows you to spread the cost over a set period. Once your monthly repayments are over, the van is yours. But it can be more expensive.
Is leasing right for you?
Leasing offers you your usual dealership vans, for affordable online prices – all in one convenient place. Customise the trim, term, initial payment, and mileage to fit your needs. The bonus? You get access to the latest technology, better fuel efficiency, and top-notch security features – keeping your livelihood safe and sound.
So, if you need a new van without the upfront cost and hassle of ownership, leasing might just be the smartest move for your business. At Vanparison, we help tradespeople like you find the perfect lease deal. Get in touch and drive away in your next van – without the financial strain.
For further information on Vanparison visit Vanparison Leasing | Van Leasing Experts | Van lease Deals.
