If you run a business and are looking for company vans or you are self-employed and need your own individual van, then leasing a van might be the cheapest way to do it. There are a variety of pros and cons to leasing a van and our infographic demonstrates both sides of the argument for leasing a van.
One of the main benefits of leasing a van, is the fact that the costs will be lower on a monthly basis than any other way of purchasing a van on monthly payments. This could allow you to get a better van on your budget, or if it is a monthly budget, stretch it to include more vans if needed for less.
When it comes to the deposit, you can either pay no deposit or a very low deposit when it comes to leasing in comparison to paying a deposit on a car finance option. This is because a leaser will add additional costs on monthly instead. If you choose not to pay a deposit, so as long as you can continue to pay the monthly costs, the original deposit will be spread over the agreed period.
When your agreement comes to an end, you will find that the depreciation on the van’s value have caused it to drop and it will most likely be worth somewhere between 30-60% less than when your agreement started. However, with leasing, you can simply hand the vans back and not have to worry about the depreciation at all. This also means that you do not have to worry about trading your vans in for another set of vans, which reduces the hassle for you, the customer.
If you wish to upgrade your vans earlier than when you leasing agreement comes to an end, there is flexibility in the agreements depending upon the agreed terms. If you are taking out an agreement and believe you may wish to upgrade early, discusses it with your account manager or lender, to see how that would be possible.
If you are worried about your credit rating, the majority of car leasing companies now consider all kinds of credit, no matter if you have excellent credit, good credit, poor credit or bad credit. They will find an agreement to suit your credit rating and help you improve your credit rating.
You might suspect that with leasing, the choice of vans is limited. Not so. With van leasing, it is possible to get any make and model and they are all available for you to choose from.
Like most things, van leasing is not perfect and there are a few negatives that get thrown in the mix.
First, if you are keen to own the vans at the end, this is usually not possible on the majority of van leasing agreements. However, if you opt for a Personal Contract Purchase (PCP), you have the chance to purchase the vans by paying a higher monthly cost to cover it, or you can pay a lump sum at the end of the agreement to cover any remaining cost for the van.
Before you take up a leasing agreement, especially for business-use vans, work out how much mileage annually you will likely need. This is because when you take out a leasing agreement, the annual mileage must be decided upon at the very start.
If you are looking to end your agreement early rather than upgrading it, there will be a cost for terminating your contract.
As you can see there are far more pros to van leasing than there are cons. The infographic demonstrates the pros and cons of van leasing.