How can I personalise my van lease?

Business or Personal Contract Hire

The only difference between business and personal contract hire (BCH or PCH) is that VAT is included in PCH prices while it’s excluded in BCH.

Personal contract hire works best if you’ll be using your van for personal use, or through a business vehicle allowance, while business contract hire is for vans used for professional use.

If you’re unsure: PCH is if a person is funding the lease, BCH is if a business is funding.

The lease application will be different depending on which option you choose, so it’s important to know which contract type you need.

Choosing Your Term

You can flex the length of your term when you’re picking your van lease. Vanparison offers a lease length of either 24, 36, or 48 months.

In most cases, a longer lease term means a reduced monthly payment because depreciation slows as a car ages. But because of the different discounts Vanparison can negotiate, this is not a hard and fast rule.

If you’re not set on a specific length, we recommend comparing different terms online or talking to your leasing consultant to work out which term comes in at the best price.

Choosing Your Initial Payment

The initial payment will be a multiplication of your monthly payment; either 1, 3, 6, or 9 times the monthly cost. We can’t offer custom deposits, unfortunately.

The higher the initial payment, the lower the monthly cost, because you’ll be paying a larger portion of the total lease fee upfront. The overall cost of the lease won’t vary much, it just depends on how you want to divvy it up over your chosen term.

Van lease deals are offered referred to as a calculation, e.g. 3+23.

This is just a simple way of displaying the lease term and the payment profile. In the example, the ‘3’ represents the deposit (three monthly payments upfront) and the ‘23’ represents the remaining length of the 24-month lease.

In terms of numbers, that might work out like this: a £250 monthly payment on a 3+23 lease would be a £750 initial payment, followed by 23 further payments of £250 each month. Your overall lease would be 24 months and would cost £6500 (250x(3+23)).

Choosing Your Mileage

When you put together a lease, you’ll have to agree to a set mileage limit.

If you’ve gone over this when you hand the car back, you’ll be charged an excess fee. This charge will be in your documents, and you can always ask your leasing consultant.

The most common mileage limits are 5000, 8000, 10,000, and 12,000. If you want to go above 30,000 miles a year, you’ll need to talk to your leasing consultant.

Being as accurate and realistic as possible upfront can help you avoid those extra costs further down the line. If you think you’ll exceed this limit, you can talk to your funder and they might allow you to change your mileage – but this can incur extra administration costs and will change your monthly payment.

Choosing Added Extras

There are additional extras you can add to your lease, like a maintenance package. This can cover services, MOTs, replacement tyres, and more. It’s worth talking to your leasing consultant about whether it’s a good idea for you.