Van leasing fees explained
This is a breakdown of all the different fees that you’ll need to pay when leasing a van
The main cost comes from the initial payment and the following monthly payments – these will be agreed at the outset of the lease. Some other fees are agreed, and some others are ‘avoidable’.
The initial payment is paid 7-10 days after delivery, and it’s a multiplication of your monthly rental. You can choose how much you want to pay to an extent – it’ll be an increment of 1, 3, 6, or 9 months.
The more you pay upfront, the smaller your monthly payment will be.
The overall cost of the lease won’t be affected too much by paying more upfront, but some funders will reduce their fees if you make a larger initial payment because less money is consequently being borrowed.
Your monthly rental is the amount you’ll pay for your lease van each month for the agreed length of your lease.
This figure will be clear before you sign any papers, and it includes the road tax for the van at the prevailing rate.
Your first payment will be taken a month after delivery, but once the first payment has been made you can adjust the date with the funder. Many people prefer their monthly payment to fall at either the beginning or the end of the month.
We charge a processing fee to help cover the costs of sourcing, arranging, and marketing the lease deals, as well as processing the lease agreement.
Vanparison charges a processing fee of £225 plus VAT, which is payable by either a debit or credit card over the phone with our team (the only one we don’t accept is American Express), or via BACS once your finance has been approved.
If your application is denied, we won’t charge you this fee.
Excess Mileage Charge
At the start of your lease, you’ll agree to a set mileage limit.
A higher mileage limit will result in a higher monthly cost because it covers the depreciation value for your van. You’ll also be told about any potential charges for excess mileage, and this will come into effect for every mile you drive over the agreed limit before your lease ends.
Excess mileage tends to range between 3-24p.
This would mean that, for example, if your excess charge is 5p and you exceed your agreed limit by 1000 miles, you’d be charged an extra £50.
This cost can be avoided by staying within your mileage limit, though if you think you will exceed it, it is worth talking to your funder.
We offer a maintenance package alongside your lease van.
It uses the same format – an initial payment followed by a set monthly fee – and covers the cost of maintaining your vehicle. This can include routine maintenance, tyre replacement, and other wear and tear items.
Note that there will also be an excess mileage fee for your maintenance package that will apply in addition to your lease excess mileage charge if you exceed your agreed mileage limit.
Wear and Tear Fees
If you return the van in an unacceptable condition according to the BVRLA Fair Wear and Tear guidelines, you will be charged to make the appropriate repairs.
Should you damage your van during the course of your lease, it’s likely more cost effective to fix the damage before inspection as the funders chosen garage is likely to charge you more than you might pay if you get it fixed.
Was this article helpful?