Professional Builder’s Lee Jones looks at the benefits of leasing, and what Vanarama can offer the trades, including the latest electric solutions.
Many builders are now recognising the benefits of leasing a van rather than opting for a new or second-hand purchase. A predictable cost and monthly payment over the terms of the agreement, servicing and breakdown cover included in the fee, and no road tax or MoT on a new van for the first three years all add up to a compelling argument. Not only that, consider that a builder’s trusty workhorse is very likely to be the single biggest investment they will make in their business, but it is also one that will inevitably depreciate in value. With leasing there is, of course, no such concern – because at the end of the agreement the vehicle is simply returned, and you can upgrade to another brand-new model.
Vanarama is already well-versed in supplying tradespeople with the wheels that drive their business and provide a whole range of builder-friendly solutions. The company offers lease terms of typically 2 to 5 years with either an initial 1, 6, 9, or 12 month deposit – with the more you pay upfront reducing your monthly commitments over the life of the lease.
As a leasing company, Vanarama can source pretty much any van, including a growing electric vehicle (EV) portfolio, but has particularly close relationships with Ford and Vauxhall, and with the Transit Custom comfortably the most popular van in the UK – and the Vivaro also proving a hit with builders – that’s good news for trade customers. Moreover, with their reputation in the market they also benefit from very early access to the latest electric vans too. The fixed monthly payments are partly based on the purchase price of the vehicle but, because Vanarama can source significant discounts from manufacturers, that means you’ll ultimately be paying less.
A builder will choose their van based on the demands of their trade, and a leasing agreement is no different. The tools and materials that a tradesman carries on a daily basis will determine what payload and volume is required, for example. Vanarama has the kind of expertise that can help its clients make the right choice, not just in terms of the model, and whether or not Electric Vans are a possibility, but with a lease agreement that reflects their trading circumstances.
In terms of leasing, mileage is an important consideration, as Vanarama’s Head of LCV and EV Paul Kirby explains: “A builder’s van or pick-up is often parked up outside the job for much of the day, and many only operate in a relatively small geographical area. We’ve done some research and found that our construction industry clients actually do far less miles than they think they do. They might come to us and ask for 20,000 miles a year when in reality they’ll only do 11,000 or 12,000, which means they can get a vehicle a lot cheaper than they might think, whilst it also follows that they’re better placed to make the switch to EV than many others.
“Our pick-up truck workshop can deliver a unit to the end user with accessories, like tow bars and roof racks. In fact, with servicing, maintenance, breakdown cover and insurance all available direct from us we’re effectively a one-stop shop for any brand-new vehicle. Indeed, when it comes to insurance, we can even offer guaranteed premium which stays the same over the whole term of the lease if the customer’s circumstances remain the same.”
The recent announcement that the government is to prohibit the sale of new petrol and diesel vehicles from 2030 has brought the potential of the electric vehicle (EV) market into sharper focus. Vanarama has already seen increased interest in battery powered vans and has made further moves to make it easier to effect the change. “We’re offering the installation of a charging point installed in a customer’s home premises as part of the lease, helping to alleviate concerns about charging” continues Paul. “We also operate an electric van loan scheme, where a builder can try an EV for a week before they commit to a lease agreement. With the improvements in range, which has long been a concern, and the major players bringing more and more electric variants to market, we’re finding that there’s growing confidence in EVs as a solution. When the e-Transit arrives, the electric version of the UK’s best-selling large panel van, that’s a process that’s only going to accelerate.
Most recently Vanarama has announced a partnership with EV energy billing specialist Mina. It is a partnership that continues the theme of predictable monthly payments that the leasing heavyweight already champions in allowing customers to pay a fixed monthly amount for their EV home energy costs, and get access to thousands of public charging stations – all on a single bill. That means with Mina and Vanarama, drivers switching to electric vehicles can pay a set monthly fee for their vehicle lease, home charge-point, home EV energy and access to public charging – a first in the UK. Also, as an employer, it enables you to separate the energy used for the works van from other home energy use making it easy to settle the “fuel” bill and claim the VAT back.
For launch, Mina are offering a promotion where EV drivers will power their vehicle at home for free for the first three months when they sign up to a 24-month subscription. For EV drivers, the costs to charge the vehicle will be taken off the home energy bill, keeping home energy completely separate to vehicle charging, and there’s no need to switch energy suppliers.
Paul concluded: “With our industry leading position and strong partnerships we have made it easier than ever before for our clients to consider and run an electric van or car. We will continue to support our customers to make the change ahead of the 2030 deadline”.
For further information on Vanarama visit https://www.vanarama.com/