Van leasing explained
If you need a van to keep your business on the
move, leasing one can make great sense. It takes away some of the ownership
hassle, keeps you in a new vehicle and helps control costs. But what do you
need to know before you sign on the dotted line?
Here’s our guide to leasing a van and answers to
some commonly-asked questions.
How much will it cost?
With a lease vehicle, there’s no haggling on
price, it’s all made clear up front. Simply choose your monthly budget, length
of contract, initial rental and annual mileage.
In general, the longer the contract you choose,
the lower the monthly cost will be. You can also increase the initial rental
payment for lower monthly rental costs or a chose lower initial rental and
spread the cost more evenly over the contract term.
There are tax advantages too. If you lease your
van or pickup truck you will be able to claim tax back on your monthly
payments. Your business will need to be VAT-registered and the vehicle used for
business purposes only.
You can also claim the cost of the vehicle’s
rental as an expense when it comes to filing your tax return, where the rental
payments can be a tax-deductible expense.
How long can I lease for?
You can choose a lease period between two and
five years.
Which models can I lease?
There is a huge choice of commercial vehicles available and you can narrow down your selection by make and model as well as price. They’re all current models, fitted with the latest technology and safety equipment.
With a new vehicle comes the likelihood of greater reliability and a manufacturer warranty in the first years for anything which does fail. New vehicles will also comply with the latest emissions regulations, important in our environmentally conscious world. You might consider leasing an electric vehicle if this fits with your business pattern.
What should you be aware of before leasing your van?
You will need a full UK driving licence, to be
over 18 and pass the credit checks to be able to lease a van.
Remember you’ll be responsible for keeping your
vehicle in good condition. A small amount of wear and tear is expected but
notable damage will have to be paid-for.
It’s important to understand what your contract
covers; some cover just the vehicle, others include service and maintenance
too. All contracts cover the vehicle excise duty (road tax).
You’ll have to insure the vehicle so it’s
important to get a quote up-front, either through Car Leasing or an independent
insurer of your choice.
Leasing is based on agreed mileages, so you
should be realistic about your annual mileage when you take out the lease as
there will be costlier penalties at the end of the contract for any excess.
What happens at the end of the lease?
When it comes to the end of the contract,
there’s no hassle having to trade the vehicle in; it is simply taken away where
it will be assessed for any damage and the mileage checked to ensure you
haven’t gone over your agreed distance.
You can then choose another contract for a
seamless upgrade to a new vehicle.
Your questions answered
- Who owns the van? The van remains the property of the leasing company.
- Are test drives possible? You’ll have to visit a dealer to arrange this.
- Can I add extra equipment? If you need extra kit such as a tow bar, ply lining or ladder rack, these can be requested at order time and will be dealer-fitted.
- Can I have sign writing on my van? Yes, provided it can be removed without damage, so we’d suggest vinyl wrap type.
- Can I fit a private number plate? Yes, this is sorted via our customer services team at time of ordering.
- What happens if I wish to terminate or upgrade early? There will be additional cost in doing this; you’ll need to speak with customer services to agree a settlement figure
- What happens if I exceed the mileage I agreed in the contract? The contract will state an excess mileage figure - which is what you’ll be charged for each mile over the agreed distance.
About the Author
Andrew is a freelance motoring journalist with a background in IT and the vehicle leasing industry. With a lifetime’s passion for all things automotive, he can be found behind the wheel of everything from vans to supercars. In addition to reviewing the latest vehicles and technology, Andrew also runs a couple of classic British motors. He lives at the edge of the Peak District with his son and cat.
Andrew Wright @theMotorWriter
