Should I buy or lease my new van?
More and more new van drivers are looking at the advantages and disadvantages of van leasing in comparison with buying one. Car & Van Finance Direct take a look at all of the advantages and disadvantages of van leasing vs purchasing a van that you should consider before deciding.
Advantages of van leasing
Lower initial payment
When comparing the initial deposit of van leasing to the deposit when purchasing a van, you will normally find that the initial deposit is lower for van leasing. The cheaper initial figure will mean you won’t need to save as much money up for a deposit, so you’ll get your hands on a new van much sooner.
Included in your van leasing agreement is road tax, breakdown cover and manufacturer warranty, so it won’t cost you extra to pay for these like you may have to if you purchased a van. For an additional monthly cost you can also choose to have a maintenance package included.
Brand new vans
Choosing a van leasing agreement ensures you get the latest model of brand new van, with all of the latest technology, mechanics and engines, so you can rely on your van doing the job every time. It is likely to cost you significantly more to purchase a new van rather than lease it.
Once we have confirmed your delivery date, your van will be delivered to a specified address free of charge, then after handover your van is ready to drive. At the remainder of your van leasing agreement you can arrange collection of your van (contract hire agreements) and there is no hassle regarding selling your van.
New van rotation
If you like driving a new van you can get this experience for years to come as at the end of your contract you are able to arrange a renewal, so you’ll always be equipped with the latest technology and safety features. Van leasing ensures that you will always be able to enjoy the benefits of a new van without worrying about depreciation.
Reduced business risk
Van leasing reduces some of the risks associated with owning a business, as leased vans aren’t counted as business assets. This means if there was to be any business uncertainty then the vans wouldn’t be used to pay off any debts.
Disadvantages of van leasing
Depending on your van finance option, there is no option to purchase the van at the end of the lease, meaning the van must be returned or sold at the end of the contract depending on the van finance option you select.
Wear and tear
We accept that some wear and tear is likely to happen throughout the term of your contract, however if you exceed what is deemed fair wear and tear in a contract hire agreement then you will be liable for costs.
When agreeing to a van leasing contract you are making a financial obligation to make the fixed monthly payments required on the lease, you’ll need a good to excellent credit score to be accepted.
In order to determine the costs of the lease, you will set an annual mileage limit when arranging the contract. If this is exceeded in a contract hire agreement then you’ll need to pay excess mileage charges.
In a contract hire agreement you need to return the van in the same condition as when you took out the lease, obviously taking into consideration fair wear and tear, therefore you’ll be limited as to what modifications you can take to the van unless you purchase it.
New vans on finance
Looking for a new van? Car & Van finance direct can certainly help! With a massive range of new vans available and cheap van finance options including van leasing, contract hire and hire purchase. Enquire online or call us on 02920 789234 to get the ball rolling today!