Is leasing a van right for me?
Like any credit agreement, there will be criteria you need to meet to be considered eligible for leasing, including:
- Can you afford the initial payment and the ongoing monthly payments?
- Is your affordability likely to change?
- Do you have a healthy credit score?
- Are you a UK resident with a permanent, identifiable address?
- Do you hold a valid driving licence?
If you can confidently answer the above statements with a resounding ‘yes’ then van leasing is an excellent possibility for you.
But if your answer is ‘no’, it’s unlikely that your finance application will be accepted, and exploring other options to fund your vehicle could be the best course of action.
If you feel leasing is still for you it’s important to consider the financial implications.
Buying outright seems to be the preferred choice when overall cost is the main focus. But with a contract hire agreement, you could pay less for the same van than you would when buying it and selling it over the same period and mileage.
The reason for this is that you’re only paying for the depreciation of the vehicle and that figure is set at the beginning of your leasing agreement.
If you don’t have the funds available to purchase a vehicle upfront, leasing gives you all the joy of driving away in a brand-new van without that hefty lump sum.
Road tax is included at the prevailing rate, meaning this could potentially save you a good chunk of money a year compared to alternative financing options or buying the car outright.
Leasing agreements do come with certain conditions. There will be restrictions on the mileage of the vehicle and general wear and tear conditions.
You’ll be expected to return the van back at the end of your agreement without exceeding your annual mileage limit. Your leasing company will also expect the car to be returned in a condition that reflects the standard use for its age and mileage.
Any excess miles or damage will be chargeable.
If you’re not in a position to accurately predict your rough mileage or your vehicle is likely to be subject to rough use or excessive damage, leasing may not be the right course of action.
Vanparison are affiliated to the BVRLA, whose guidelines set the standard for what is deemed fair wear and tear on returning leased vehicles. You can view the BVRLA's fair wear and tear guide online .
If you like the idea of not having to fuss with repairs, then the convenience of leasing may be ideal for you.
The benefit of leasing means you’ll always drive the newest van models, making it more reliable, and oftentimes safer.
It’s easy as pie: the vehicle is delivered to you, and then collected once your term has ended. There’s no need to worry about road tax, and faults are covered for the first few years under the manufacturer’s warranty.
You will still need to service your vehicle and complete an MOT if your lease agreement is longer than 3 years, but this is the same with any other funding method.
Maintenance packages are available to help with these pesky ongoing costs. This can be bolted onto your lease payments, and you can find more information about this here.
Ever fancied going electric?
Newer vans are required to adhere to stricter emission standards than older ones, especially if you work in a city with a low emission zone. Leasing could help save you some money on ULEZ fees, as well as helping your business stay green with a lower carbon footprint.
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