Van leasing is an incredibly popular way of financing a new van, Vansdirect reveals everything you need to know if you are considering a new van lease.
As many of us know, choosing and buying a new van for your business can be exciting, confusing and on occasions stressful. When in reality, it should just be exciting. Buying new assets for any business shows you are heading in the right direction, making money and growing. However there are a lot of different finance options available and all of which can be very confusing. Well don’t panic, here at Vansdirect we explain one of the most popular finance choices when buying your new van, van leasing
Van Leasing (Or finance lease) allows you to hire a new van for a fixed period of time from 2 years up to 5 years with agreed monthly payments during the term. At the end of the term, the customer has to pay the final balloon payment at the end of the agreement term, this is covered by selling the van to a third party, this is a legal requirement of van finance lease.
Any type of van leasing for your business and van has its advantages, but they also have a few areas which a lot of people tend to overlook.
- Fixed monthly costs, allowing you to predict your outgoings through the agreement.
- Fixed Interest rate, meaning that your payments are not affected should interest rates fluctuate.
- Keep your capital in the business without having to invest large amounts of capital into the agreement.
- Taxable benefit, so you can claim the VAT back against your allowance.
Points to Consider
- Mileage allowances – Make sure at the start of the van lease that you check the mileage restrictions you have. If you do go over the mileage allowance, then you won’t be charged (this would be the case for contract hire), however the final value of the van may be affected and you could be left out of pocket when it comes to paying the final balloon payment.
- Wear and tear – You will not have to pay any costs for excess wear and tear to the van with van finance lease (you would be liable with contract hire), however any wear and tear can again affect the final value of the van at the end of the term.
- Deposits – Deposits can result in a large chunk of business capital being used, so make sure you try and get a tailored agreement to suit your needs and budget.
- Van Insurance costs – Your insurance may rise as you now don’t legally own the vehicle. Remember to check your premiums before you make the purchase.
- Non Maintained – Remember you are liable to cover the maintenance of the van under a van lease agreement. This includes repairs, breakdowns and MOTs unless you take out a maintenance package.
New van finance
Looking for a new van lease? Vansdirect are here to help! We have a team of new van experts who can help you find the best van finance package for your needs! Simply fill in a contact form or call us on 0800 169 69 95 to find out more!
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