Anyone looking to lease a van – or perhaps even a whole fleet of vans for their business – should ensure that they use the services offered here at TrackCompare.co.uk before doing anything else. We can take all of the hassle and problems out of making this type of purchase, simply by showing you information about all of the different companies you can buy from, all in one easy to use location.
Advantages of Van Leasing
When it comes to running either a fleet of vehicles or just a single vehicle, leasing a van has a huge number of advantages over buying one outright. Below are the main advantages that this practice can bring to any business.
No Large Deposit: If your business is not cash rich, putting down a deposit on a fleet of vans could over stretch your finances. Van leasing requires a very low initial payment, therefore making it infinitely more affordable than buying.
Manageable Monthly Payments: One of the most difficult aspects of running a business is controlling expenses, and this is made even more difficult when you don’t know the exact amount of expenditure for future months. Van leasing with maintenance included will have an agreed amount to pay back each month and no extra costs will be incurred for repairs and maintenance.
Hassle Free Disposal of Used Vans: Vehicles with a lot of miles on the clock, especially vehicles that have been used for business purposes, can often be hassle and time consuming to get rid of when you are finished with them. With van leasing, you simply return the van when the lease is over and swap it for a new one!
Recover the VAT: If your company is VAT registered, there is a good chance that you will be able to claim back the VAT from the leasing of a van. Over the course of the contract this can amount to a lot of money.
Lower Maintenance Costs: Often the leasing company will be at least partly responsible for the ongoing maintenance, therefore this will reduce the financial strain placed on the business considerably. New vehicles also don’t need to get an MOT for three years, so there will be no need to worry about this either.
When you read through all of the advantages listed here, you are probably thinking to yourself that all businesses should be using leased vans and that they should never bother to buy any vans outright at all. There are, however, a few disadvantages of leasing a van as well though…
Disadvantages of Van Leasing
You Never Own the Van: The van will never be owned by you when you lease a van – it always remains the property of the company leasing it to you. Sometimes it is possible to buy the van at the end of the contract, but this is usually not a wise business decision.
The Maintenance Agreement: It is becoming more and more common for leasing companies to insert a clause in the contract that makes you responsible for all maintenance costs, including parts and labour. Make sure that you agree a mutually agreeable maintenance contract before signing, otherwise this could turn into a costly financial disadvantage.
Limited Mileage: When you lease a van, you will usually agree that you will only drive the van a certain number of miles in a given period – if you exceed this amount then the leasing company might levy some rather high fines on you. This is obviously not an issue in your own van, as you have the freedom to drive as much as you like. To avoid this, always be very honest with yourself – and the leasing company – about the amount of miles you expect to cover.
When looking through this article, it is clear to see that leasing a van has a huge amount of advantages, although there are some drawbacks as well. To ensure that you get the best possible deal, make sure that you use a price comparison site and also ensure that you are comparing like for like deals. There are so many different types of contracts out there nowadays that it can be difficult to know if you are comparing the same vehicle and the same terms and conditions.
