However, there is no need to worry as we have come up with this handy guide which will provide you with all the information that you need when choosing the right type of van contract for you. Carry on reading to find out more!
What Exactly is Van Leasing?
Van leasing has been on the rise for the past decade, but many people are still unaware of what exactly van leasing is. This is essentially a long-term rental agreement. As part of this rental agreement you will have exclusive use of a van or a pickup truck and this will be for a set length of time which is usually around two years. At the beginning of your contract, you will pay a one time rent and then you will pay monthly instalments. At the end of your lease agreement, you can then hand back the van to the finance provider and you will not have any further obligations to it. This then gives you the option to purchase a vehicle or lease another if you so wish to. Partnerships, limited companies and sole traders are all big users of van leasing and it offers a fantastic cheaper funding solution to getting a new van but you won’t have to break the bank to get it or take out a huge bank loan. You also don’t have to worry at all about the value depreciating or selling the van as this will be the job of the rental company at the end of your contract.
What Are the Main Van Leasing Benefits?
There are many reasons why van leasing has become so popular in recent years. The main benefit of van leasing is that you can enjoy fixed monthly rental costs for the term of the lease that you have agreed on and this then makes it easier to plan out your business finances and making budget planning a lot simpler. There is also a low initial rental cost which is tiny compared to the upfront cost of taking a car on finance and so this is also major plus point as to why so many people prefer van leasing. What’s more, as a business, you can negotiate the duration of your lease and also the mileage terms to accommodate your business. Plus, with van leasing, what’s great is that there are not lots of extra costly surprises to worry about such as road tax, maintenance, servicing and tyres as this is all included in your leasing package. Additionally, as this is a new van, you will get the full manufacturer warranty on the vehicle too as standard. Finally, what really sets van leasing apart from financing a van or even buying one outright is that this gives you the opportunity to drive a brand new car every few years and you can pick from all the latest and exciting car models such as Volkswagen, Renault, Citroen and Mercedes. The most popular Mercedes van to lease is the Vito Crew Van sport Wasp and if you’re interested in this van, you can click here for Mercedes Vito Sport images which may help to persuade you to go for this option.
As a business, leasing a van can have even more amazing benefits. With a business van leasing deal, you will be able to take advantage of lots of great money breaks such as positive tax implications outsourced fleet administration.
What to Consider When Leasing A Van
Before you jump in and sign a van leasing contract, it is important that you take into consideration some key points before doing so. If you decide that you want to terminate your contract early, then you will be hit with a big fine for doing so and if your car exceeds its mileage limit then this can also be costly too. It is also worth noting that van leasing costs are based on mileage, so if you are going to be doing a lot of miles in your van, it may not be worth it. Furthermore, this shouldn’t come as a surprise but remember you will need to return the van in a good condition as you will be charged for any wear and tear or damages. You also need to make sure that your vehicles have full comprehensive insurance. Finally, with many van leasing contracts, you won’t have the option to buy it at the end. If this is an option that you may want at the end of your lease, then you will need to ensure that this is pre-agreed and that you take out a lease that allows this option.