Running your own business comes with more than a few costs, right? From operational costs to the never-ending spending associated with vehicle maintenance and upkeep, now is the time for businesses in the UK to tighten their belts and look for ways to cut their costs – and that’s where van leasing comes in. 

Let’s explore this fantastic option for keeping your business going when times are tough, as we see just what van leasing entails. 

What is Van Leasing?

Did you know you can lease a van just as you would a car? Yes, it’s true. Van leasing is quickly becoming a more popular option for companies to acquire their vehicles while keeping maintenance and upkeep costs down. But what are the ins and outs of van leasing, and how does it differ from those of leasing a car?  

The Benefits of Van Leasing

Van leasing sure has a lot of benefits when you take into account the various costs of running a business. Kiss your financial woes goodbye as you enjoy these benefits of leasing a van:

#1: Financial Flexibility

Depending on the leasing company you use, you might be required to make an upfront payment when leasing a van. But, there is some good news in that the amount you pay has a direct impact on your monthly repayments. A larger down payment will result in lower monthly payments, while a smaller down payment will hike up the cost of your monthly repayment. 

No extra cash lying around to make a big down payment? No problem, but expect your monthly repayments to be a tad higher. 

There are a few options available to those who want to lease a van, with some offering you the option of purchasing your leased van at the end of the lease term. This option does, however, require you to pay a larger balloon payment at the end of your lease term, so be sure to discuss this with your dealer or leasing company before you sign the contract.

#2: Easy Upgrade 

A leased van is great for those companies or small businesses that are still in their growth phase. Rather than having to sell their current van to buy a larger one, leasing a van allows business owners to upgrade their vans in as little as two years. 

All you need to do is return your van to the dealer or leasing company at the end of the lease term, pay the necessary costs, and choose your new van, truck, or pickup. It really is that easy. 

What are these necessary costs, you ask? Here is a quick rundown:

• Charges related to exceeding mileage restrictions
• A balloon payment should you choose to buy your van
• Any additional costs relating to wear and tear

#3: Maintenance and Servicing Benefits

We all know the exorbitant costs that come with maintaining a vehicle, and for those who drive vans, trucks, or pickups, these costs are nearly double that of a regular car. Opt for a maintenance and service package when you lease a van, and kiss these crippling costs goodbye. 

Leasing a van is a more cost-effective option for many business owners as the leasing company takes care of the upkeep and maintenance of your van, leaving you to focus on the running of your business without additional administration. 

Is it Worth the Risk?

Sure, leasing any car or van comes with risks. If you’ve read our article on what you can expect when leasing a car, you might already know some of these risks. But for those who haven’t, here are a few of the risks you should be aware of before you choose to lease a van for your business:

Risk 1: Mileage Restrictions

All leasing companies impose mileage restrictions on their vehicles, and this applies to vans too. Negotiating a higher mileage is possible, but be aware of the implications it will have on the monthly repayments of your lease. 

Choose the best possible option for your business, keeping in mind that each kilometre you drive over the limit will cost you. 

Risk 2: You Do Not Own the Van

For many companies, their vehicles are listed as assets, giving them equity. This is not the case with leased vans, as the vehicle does not belong to the business. If you’re looking to add a few vehicles to your asset registers, you might want to reconsider leasing a van. 

Risk 3: Upfront Payments and Other Charges

As we mentioned before, some leasing companies require an upfront payment to secure the leased van. Find a company that does not charge these upfront payments, or negotiate the amount where possible with your current leasing company to keep costs as low as possible. 

Other charges that might arise when leasing a van are the hefty costs associated with a breach of contract. Returning your van before the lease term has come to an end, breaching any mileage conditions and restrictions, and any additional wear and tear will cost you dearly. 

Risk 4: No Modifications

This last risk is a problem for many businesses as leasing companies do not allow any modifications or customisation of their vehicles. From not being allowed to use custom plates to no paint jobs, there are not many things you can do with a leased van. 

Chat with your leasing company about the use of decals before you go ahead and plaster these all over your leased van, too. 

Conclusion

Leasing a van is as quick and easy (yes, we said easy) as leasing a car. And while there might be a few differences between the two in terms of cost and the risks associated with leasing, leasing a van is still a great option for those who need an affordable option for a vehicle for their business. 

Do your research on the best leasing companies available and find one that understands your needs as a business owner. The right van is out there; you just have to know where to look.