What are you paying for with a van lease?

There are a few different factors included in the total cost of a lease, including:

Depreciation

Depreciation is assessed by comparing the value of the car when it was new compared to its value at the end of the lease agreement.

This cost is what forms a large portion of the total van lease cost.

Included in this is the need for annual mileage and condition restrictions. These elements are directly linked to vehicle depreciation, and there are additional charges applied if these conditions are not adhered to.

Money Factor

The money factor is the amount the funder of your lease deal will charge for tying up their capital during the agreed lease period.

The finance house purchases the vehicle from the dealership to lease out, which ties up the asset for the length of the lease before they sell the vehicle on.

An amount will be calculated into the total lease cost to account for this.

Interest rates are assessed on a case-by-case process and will vary depending on the credit score of the individual applying for the van lease.

Higher interest rates are likely to be applied to an individual with a lower credit score as they would be perceived to be a higher risk.

Leasing costs are kept to a minimum as the application process is only passable to individuals who have a fair credit score.

Commission

The commission is built into the total cost of the lease.

It’s a fee that Vanparison as the leasing broker charges to cover the costs of negotiating and advertising the lease deal with the dealerships and funders.

With the aim of being transparent about how we make our money, Vanparison states the commission we are making on each page on our website and on each individual quote we provide.

You can always ask your leasing consultant about it too, if you have any questions.

Processing fee

The processing fee is a one-off payment that is payable to us, your leasing broker. The £249 +VAT is to cover the administration costs involved in every lease deal.

Excess mileage charge

When ordering your new van, you will also agree to an annual mileage limit for the duration of the lease

For every mile you go over your set limit there will be a charge applied. The exact fee for this will be available on your order documents and visible to view on your online account. This will be billed by the funder of your lease and payable after you have returned the van.

Fair wear and tear

All leases adhere to a standard set of guidelines regarding the condition expected for the return of the vehicle. Acceptable conditions may vary from funder to funder, but all finance houses are regulated by the BVRLAs’s Fair Wear and Tear, which you can view at any time.

It outlines what is and isn’t deemed acceptable wear and tear, and what you’ll need to get fixed before you hand the van back.

Once the vehicle has been assessed, any damage deemed unacceptable will be charged by the funder when your van is returned.