If you're looking for a brand new van to drive your business forward, but don't want to pay out a lump sum upfront, leasing might just be for you
What Is Van Leasing?
Van leasing is when you pay a monthly fee to drive a van. Think of it as renting, but typically for a longer period. You'll pay a small initial rental at the beginning, a monthly fee for the term of your lease and hand your van back at the end. Simple!
Why Lease A Van?
The benefits of leasing a van are becoming clear as it gets more and more popular. These include:
An Affordable Fixed Monthly PaymentThis is one of the key benefits of leasing. It allows you to stay on top of your monthly budget and keep your outgoings low by spreading your payments over time.
Not Dealing With A Depreciated AssetLike almost all vehicles, vans depreciate in value over time. Leasing means you're not left with a used van to sell. You simply give the van back at the end of your contact & you can upgrade to a brand new model - just like you would with a mobile phone.
Advanced Breakdown CoverLeasing with Vanarama also makes you eligible for benefits including Advanced Breakdown Cover, so throughout your lease you never need to worry about your business being off the road.
A Range Of Extra SavingsYou won't need an MOT or road tax on a brand new van for the first 3 years. If you're VAT registered you can also claim this back on a commercial vehicle.
How To Lease A Van: Step-By-Step Process
Choose Your Van
The first step is to choose the van you want. We have a wide variety of the latest models to make your business, look the business
Choose Your Lease Package
Next up you choose the type of lease you want, how long you'd like to lease for (typically 2,3 or 5 years) and how many miles you think you'll drive in that time.
Provide Your Financial Details
We'll then need some details from you to secure credit from one of the finance companies we partner with. This is when they'll do a credit check to ensure you're able to afford the monthly payments. You'll tell us how much you can afford as your initial payment and we'll take holding deposit to secure your new van.
Once all the paperwork is sorted, your van will be delivered direct from the dealer, straight to your door!
Enjoy Your Van For the Length Of Your Lease Contract
And that's it, you'll keep your business moving for the length of your lease.
Return Your Lease Van
Finally, at the end of the lease, you simply hand the van back and, if you want to, you can upgrade to the latest model and start the process all over again!
What Are The Different Leasing Options?
There are 3 main lease options we offer at Vanarama. These include Van Business Contract Hire, which is our most popular form of leasing. The others are Van Business Finance Lease and Van Contract Purchase which come with an option to own the car at the end of your term.
What Is Van Business Finance Leasing?
Van Business Finance Leasing is when you pay a monthly fee to drive a new van but you have responsibility for the vehicle at the end of the lease. So alongside the initial rental, you will also pay a final payment.
This has pros and cons… if the value of the van is higher than expected at the end of your lease, you can sell the van, pay the final payment and make a profit. However, there is always a risk the van will have depreciated in value and you will be liable for a balloon payment higher than the value of your van. Beware, you also can't personally own the van at the end of the lease and you will need to sell it on.
What Is Van Business Contract Hire?
Van Business Contract Hire is leasing in its purest form and is the most popular package we offer. You pay a monthly fee to drive your van and get to give it back at the end of your lease.
There are lots of advantages to Van Contract Hire including initial payments that tend to be the lowest amongst all the options, affordable monthly payments and no risk of being stuck with a depreciated asset at the end of your contract.
What Is Van Contract Purchase?
Van Contract Purchase is typically offered to those that really want to own their van at the end of their lease. Unlike the other two options, Contract Purchase allows you to personally own the van.
With this option you still have the advantage of fixed monthly payments but they do tend to be higher than the other two options. You will also have a final payment you'll be liable for.
How Are My Fixed Monthly Payments Calculated?
For every type of lease agreement, there are 4 variables that determine what your monthly payment will be:
- The Cost Of The Vehicle The first is the cost of your new van. The lower the value of your van, the lower the initial rental and monthly payments will be. Remember, because of the significant volume of vehicles we lease, we're eligible for discounts on all our vehicles which we pass straight onto you. So leasing with Vanarama means you'll pay less!
- Interest Rates When you lease your van, you'll be doing a deal with one of the funders in our panel. The deals the funders offer will very much depend on the interest rates at the time. The good news is that even if interest rates increase between getting a quote and delivery of your van, your quote won't increase. However, if interest rates go down, we'll pass this saving onto you and you'll see your monthly payments decrease.
- Residual Value As well as your mileage and the length of your lease, what your van is estimated to be worth at the end of your term is another important factor when calculating your monthly payments. There are a range of variables affecting the estimated residual value including the lenders' personal experience, how many of that model they have and the perceived risk of that vehicle.
- Initial Rental At the beginning of your lease, you'll pay an initial rental. This, alongside the length of the agreement, will affect how much your monthly payments will be. You can decide how much you want to pay up front based on how much you can afford. But remember, the more you pay upfront, the less you'll pay in the following months.
How Much Does It Cost To Lease A Van?
This really depends on the type of van you're after. At Vanarama we have some amazing deals starting around £130pm for a small van & around £200pm for a medium or large van.
Are All Leased Vans New?
At Vanarama we only lease brand new vans. Of course, you can lease a used one elsewhere, but why would you want to when it often works out cheaper (and certainly better) to lease new?
How Long Does Delivery Take?
Obviously this is dependent on the vehicle you choose, whether it's in stock and if you're having accessories fitted. If the van you choose is in stock and available, it can take as little as 2-3 weeks to be delivered.
What Is A Pre-Reg Van?
A pre-reg van is a brand new van that has already been registered (given a registration plate by the DVLA). Depending on how long a van has been registered for might mean we can offer you a much better deal.
Is Tax & Insurance Included In Your Van Contracts
VED Tax (sometimes known as road tax) is included as part of your monthly payments. Insurance is not included, but we have some excellent and competitive policies including Multi-Year Insurance which freezes the annual premium of your van insurance for the entire duration of your lease.