Benefits of van leasing

What is van leasing?

Van leasing is a way of renting a vehicle from a company. Leasing uses a finance company to fund the vehicle and you then pay to lease it. You and the finance company go into a contractual agreement which means you make payments in exchange for being able to use the vehicle.

Leasing is a great choice for somebody who cannot or does not want to purchase a vehicle outright. You’ll be able to drive a brand-new car at an affordable monthly cost. You can think of a van lease as a long-term rental that allows you to use a vehicle with minimal hassle.

Find out more in our complete guide to van leasing.

Top 10 advantages of van leasing

Let’s say you need a van but don’t want to buy one. That’s understandable. Buying a van outright is a big investment. This is why many people choose to lease their vehicle instead, so they can use it for an extended period without a massive commitment.

When it comes to leasing a van, there are many advantages for you to keep in mind. In the sections that follow, we’re going to outline ten of these in detail.

1. Low monthly payments with leasing

With van leasing, you are only paying for the length of time that you’ve agreed to lease the van. You do not pay the full cost of the vehicle, as you would when financing it. The payments are often lower and more manageable, allowing you to keep an eye on your business’s cash flow.

2. Choose a van that’s right for your business

If you’ve recently started up a business or are looking to add an additional vehicle to your fleet, leasing is a terrific option for you. This is because you can select a van that perfectly suits your business without the commitment of buying. Need a van for a few months that has a lot of cargo space? You’ll be able to find one with a lease without any hassle.

3. A brand-new van every few years

We only lease new vans, but the way that leasing works means that you can benefit from low payments whilst enjoying a brand-new vehicle. It can even work out cheaper than financing the purchase of a slightly older van. That means you get all the new tech and gadgets that you would expect from the latest commercial vehicles on the market.

4. A low upfront payment

When compared to buying a van, you’ll find the upfront payment for a new vehicle lease to be low. This can vary depending on the van you want to drive, but you can expect low upfront costs.

5. Include maintenance and insurance in your van lease

We know that maintenance and insurance can feel like a hassle – not to mention costly! With a van lease, you will get maintenance and insurance included as part of your van lease contract.

6. Leasing a van couldn’t be easier

At Leasing Options, we’ve made sure to make the leasing process simple. With transparent leases and advice every step of the way, we’re here to help turn your van dreams into a reality.

7. Van leasing costs are fixed

If you’re worried there are any hidden or rising fees within our leases – you can rest easy. With a lease, everything you pay is agreed upon upfront. There are no grey areas on annual mileage or equity. Other finance products, such as PCP, include the promise of equity at the end of your contract, which may or may not materialise if the value of your vehicle unexpectedly plummets.

8. There are no depreciation worries

When you buy a car, depreciation will always be on your mind. Having to ensure a vehicle stays under a certain number of miles or avoids noticeable wear and tear can be a pain. With a van lease – you won’t have to worry about any of this, since you will simply return it once you are done using it.

9. Returning your lease is simple

As you approach the end of your contractual period, you won’t have to worry about any difficulties when returning your lease. We have made the process simple. You can simply extend your lease, select a new one, or hand your car back and arrange for it to be collected.

10.Van leasing tax benefits

There are also substantial tax benefits to choosing a van lease for businesses. You will be able to make substantial VAT savings on your monthly payments by selecting a van lease, for example.

Considerations of van leasing

While there are many advantages to leasing a van, there are also some considerations for you to keep in mind before committing to a lease, such as:

• Mileage restrictions
• You won’t own the vehicle
• Wear-and-tear charges can apply

These are important to factor in, as they will affect either the type of lease you go for – or if van leasing is the right choice for you. As such, it’s important to think ahead. For example, you will need to ensure that the distances you’ll be travelling with your leased van will come under the restrictions placed upon your lease. Wear-and-tear charges can also apply, so you’ll need to have these accounted for ahead of time.

Van leasing tax benefits

VAT-registered businesses can reclaim 50% of the VAT on their monthly lease payments, or 100% if the van is just used for work or as a pool van. You can also claim a van lease and fuel as business expenses on your tax return.

Leasing also opens the door to choosing an electric van, which could save you on road tax, ULEZ charges and congestion charges.

Who should lease a van?

Van leasing is a great option for lots of businesses and individuals. Many businesses that require transportation for goods or services will choose to lease vans. That’s because it’s a cost-effective way to access the vehicles they need without the significant upfront costs associated with purchasing them.

Van leasing is also a great choice for startups or small businesses. This is because these smaller enterprises may have limited money and will be searching for a budget-friendly option for their business.

Another scenario where leasing a van is a great choice is for somebody with short-term needs. Let’s say your business only needs a van for a specific project, over a short period. This would be the perfect time to lease a van without any hassle.

Buying vs leasing a van

At this point, you might be trying to weigh up leasing a van versus buying one. Whether it’s better to buy or lease a van will depend on your circumstances and finances.

Buying a van means that you will own the van. This offers peace of mind to many people, who like the idea of owning something outright. The downside to this is you will need to pay the full cost upfront and deal with depreciation that comes with the vehicle over the years.

Van leasing deals, on the other hand, allow you to pay smaller, fixed payments each month for a set time – but you won’t own the van.

Which of these is best for you depends on what you need as somebody looking for a vehicle. It’s important to weigh up the pros and cons of each before you commit to a vehicle.

Should I include van leasing maintenance?

Choosing whether or not to include van leasing maintenance on your lease is an important choice for you to consider. It is an additional fee for you to pay, but it offers you greater peace of mind. With van leasing maintenance, you will be covered if you encounter any big issues with your vehicle.