Should I Lease My Next Van?

With affordable monthly payments, a huge range of contracts to choose from and an endless list of models and manufacturers available, a new van lease is just as simple as leasing a car. 

However, as useful as leasing a van is, it can seem confusing and sometimes a little daunting. When looking through the long list of deals, models and lease terms, it can feel like there are too many options to choose from. So we want to try and help answer any queries you might have to help you find a great deal. So let’s get started.

What Is Van Leasing?

Over the past few years, leasing a company van has grown increasingly popular with sole traders, couriers and limited companies around the UK. This is mainly due to the fact that leasing offers an often cheaper solution to buying or financing a new van.

When you lease a van, it gives you the opportunity to pay a monthly fee over a fixed term. At the start of a lease contract, the customer pays an initial rental or deposit, followed by a series of monthly payments for a period of 2, 3 or 4 years. While when you buy a van, you eventually own it, this is not the case with a lease. At the end of a van lease contract, you give the van back to the finance provider without any further obligations which leave you free to lease or purchase another vehicle.

It is almost like renting, but usually for a longer period. You’ll pay a small initial rental at the beginning, a monthly fee for the term of your lease and hand your van back at the end. You, the driver, don’t have to worry about depreciation or selling the van as this responsibility lies with the finance provider.

When a business owner or tradesman is looking into van hire, their choice of van or contract is often depending on how often the van will be used and the budget behind it. If, for example, you run a delivery firm and your vans see a significant amount of miles each year, you will need a van that has good fuel efficiency and won’t cost you a fortune to replace or fix when it breaks down. Picking a contract that gives you a cheap monthly cost, as well as a quality vehicle, is crucial, especially since the cost of a lease is allowable against tax. This means that you won’t be losing out here when compared to owning the van outright.

While it can seem new and daunting, there are huge benefits to leasing a van. These include:

Advanced Breakdown Cover

While this isn’t a standard with all lease deals, many contracts offer additional benefits like Advanced Breakdown Cover. Maintenance, servicing and tyre packages that are included in your monthly fee not only help you keep track of your vehicle outgoings but give you peace of mind knowing that you are covered if you find yourself in trouble. Once the hire contract finishes, you have the option to simply return the van and can get a new one, which means there’s no danger of any surprise repair bills once out of warranty. As a part of this agreement though, you must service the van on time and to the manufacturer’s recommendations.

An Affordable Fixed Monthly Payment

This is one of the key and most obvious benefits of leasing. Having a fixed monthly rental for a fixed term of the lease makes budget planning easier and keeps your outgoings low by spreading your payments over time. These fixed payments will be agreed on beforehand and there are plenty of options to suit your budget so no need to overspend or stretch your funds.

Not Dealing With A Depreciated Asset

It is pretty common knowledge that your car loses value almost as soon as you get behind the wheel. This same rule applies to vans too. Since you can hand the van back at the end of your contract hire, as long as you have nothing left to pay, you wouldn’t have to worry about the van losing value since you are not the one reselling the vehicle. Simply give the van back at the end of your contract and move on to your upgrade or new van.

A Range Of Extra Savings

Financial and tax planning plays a huge part in the success of a business and many business owners question whether van lease payments are tax-deductible. The good news? Most types of leases, including business contract hire, and van lease payments are tax-deductible for corporation tax purposes. Also, with most van leases, you won’t need an MOT or road tax for the first 3 years.

Find Your Perfect Lease with cars2buy

Needing a new van can be a daunting experience but we are here to help. Not only do we have a handy filter option to help you pick the perfect van for you, but we also keep all of the available lease deals in one place. Once you’ve decided on the van you want, you can pick through our extensive network of new van dealers. Cars2buy helps you find cheap van leasing deals in the UK from reputable van dealers and van leasing companies with the minimum of fuss, thanks to our powerful search facility. Check out our van leasing page today to begin your search.