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How Much Does It Cost To Run A Van?

fuel gauge and speedometer of van

Van running costs are a key consideration for most businesses when they're choosing a new commercial vehicle. By understanding the total costs involved you can then justify the expenditure to your business.

 

Initial Cost

This can vary hugely depending upon both the cost of your van & how you choose to fund your vehicle. If you decide to buy a van outright you'll need plenty of cash readily available.

If you choose to lease a van, your up-front costs will usually be lower & the more you put down at the start, the lower your monthly rentals will be.

 

Fuel Consumption

Depending on the number of miles you cover, fuel is one of the biggest costs for any business. Choosing the right fuel type can save you serious money in the long term.

Fuel consumption will be the key running cost, so check out the quoted pence per mile figure with the manufacturer. Think about what sort of driving you will do & what will be in your van.

When a van is fully loaded the unit cost of transporting your load is lower meaning improved fuel economy. It can be really beneficial to consider how you will plan your journeys to improve fuel economy.

 

Diesel vs Petrol vs Electric

Diesel, which delivers a higher miles per gallon yield than petrol, is still the most popular fuel choice for commercial vehicles. With tax breaks being offered by the Government for driving eco-friendly vehicles, however, more people are considering alternative fuel types.

Electric vans are ideal for shorter journeys with running costs starting at just 4p per mile. These also have the advantage of being exempt from the London Congestion Charge, Toxicity Charge & are suitable for Low Emissions Zones.

 

Insuring Your Van

Insurance costs will differ greatly depending on the value & nature of your van & its load. Investigate whether it's worth investing in additional security measures to help secure your van & its load. This might help bring your premium down. Vanarama offers competitive van insurance coverage, just ask your account manager when you call us for more information.

 

Vehicle Excise Duty/ Road Tax

VED van tax (sometimes called "Road Tax") is usually charged annually with each vehicle type falling into a tax band. This tax band is dependent on the registration date of the van as well as the engine size. When you lease a vehicle, VED Tax is included in your monthly rentals.

For further information, we've put together a comprehensive guide to Van Tax.

 

Transmission: Automatic vs Manual Vans

Your choice of transmission is largely a personal, rather than economic choice. Automatic vehicles are often a little more expensive than manual ones, but can also be more fuel-efficient. An Automatic gearbox will often prove its worth in convenience alone. Vanarama offers a wide range of automatic vans, including the compact & popular Ford Transit Connect.

 

Servicing & Maintenance

A well-maintained van is more likely to comply with the BVRLA's "fair wear & tear" guidelines that a funder will use to judge the condition at the end of you lease. This will save you a lot of money at the end of your contract.

Servicing, on average, costs around £125 a pop, but won't include any new parts or repairs required. While regular servicing may sound like an additional cost, it will save you money in the long run.

To help you do that, Vanarama offers Service Plus, an all-in-one maintenance package that includes:

  • Routine servicing & maintenance

  • Standard usage tyre replacement

  • MOTs if required

  • And additional cover for wearables

 

Disposal

The final aspect to consider is what happens when you need to replace your vehicle.

If you've taken a Contract Hire agreement, the van is returned to the funder at the end of your contract. Contract Hire allows you to avoid the maintenance costs that usually come with buying a used van.

 

Next Steps

Once you've worked out what your running costs will be, take a look at our latest leasing deals. If you need any more information on how leasing works, check out our leasing hub.

 

Head back to our van leasing explained hub or take a look at our latest van leasing deals