Buying a business vehicle can be one of the most expensive transactions you make. Purchasing a new van for your business use can be a costly in more ways than one. With the right van leasing deal from the right van leasing company, you can save time and money on a brand new van. When you lease a van you get the best vehicle for the most affordable monthly payment.
What Is Van Leasing?
Van Leasing is a contractual agreement where you commit to hiring a van for a fixed period of time. Many people are confused by the term van leasing as it can cover a multitude of different van finance options. With a new van lease, you can decide on the initial rental or deposit, lease period or term (2, 3, 4 or 5 years), annual mileage, and whether to have a terminal or rental balloon payment (a final lump sum payment) at the end of the lease agreement. Once the your agreement has reached its term, depending on whether you decided to have a final payment, the vehicle is then returned to the leasing agent or the balloon is paid in full making, you the vehicle owner.
Leasing a van for business is usually a hassle-free process that is often cheaper than buying a brand new van outright. Many finance terms can include GAP insurance at very competitive prices.
Why Lease A Van?
Van leasing has many benefits over outright purchase. Here are some of the benefits of leasing a van:
Fixed Monthly Rental
Van leasing agreements have monthly fixed rentals. This means that throughout the finance term you’ll know your van leasing cost won’t go up and can budget better.
Working with the biggest UK lenders with a large stock book Crusader Vans can offer a huge range of van leasing deals with affordable monthly payments to suit almost every budget, initial payment and finance term.
Tax Benefits
Another great benefit of leasing a van, as long as you use the vehicle purely for business purposes, is that the monthly payments are tax-deductible.
Insurance and Warranty
When leasing a van it is important to know the warranty period and what insurance is added to or include in the agreement.
Brand new vehicles come with a manufacturer’s warranty of at least three years, that covers any manufacturing problem the vehicle could have. You can opt for GAP insurance to protect your investment should the worst happen and the vehicle declared a total loss.
When it comes to manufacturer warranty and GAP insurance, it is important to understand the level of cover.
A New Van Every Time
As a business, asset depreciation must be accounted for. Over time the amount you can claim back as a business expense reduces, leaving you with costs that cannot be claimed back.
Leasing a van allows you to have a brand new vehicle and replace and refresh at the end of every agreement. This eliminates asset depreciation and costly maintenance of vehicles outside of a warranty.
How To Lease A Van: Step-By-Step
Understand your Lease Van Requirements
When you acquire a new van it is important to understand your business van lease requirements. Light commercial vehicles come with different dimensions and payloads.
Understanding your business requirements could help you to avoid buying a potentially unsuitable van. A medium-sized van such as the ever-popular Ford Transit Custom will suit a variety of tradespeople but specialist trades may need a heavy-duty option, a city courier may want a small electric van.
As a lease broker, we have great deals on many popular vans including Ford, Mercedes, Vauxhall, Peugeot, Renault, and Citroen as well as other manufacturers for small, medium and large vans, including panel and double cab vehicles.
Choose Your Lease Van Deal
Once you have chosen the best van for your needs, the next step is to choose a good deal based on your budget, annual mileage, monthly payment, initial payment and finance term.
Some leasing contracts will let you sell the vehicle at the end of the contract or enter a secondary rental term, and some will require you to return the vehicle to the leasing company.
Next, choose your annual mileage limits depending on your business’s individual requirements.
Here at Crusader Vans, we like to provide each customer with bespoke commercial vehicle quotes based on individual requirements and budgets. Don’t hesitate to get in touch for a free, no-obligation quote.
Provide Your Financial Details
Once you have chosen your van and lease contract, your broker will submit an application to the finance provider. Every lender works differently and depending on your length of trading and trading style, you may be required to provide some additional information to secure an approval.
Van Delivery
After the lender has approved your finance, the last step in the process is to get your brand new van! This will be arranged directly with your leasing agent. At Crusader Vans, we provide free UK delivery for all our vans within a timeframe of two weeks once the van has arrived at our premises or with the supplying dealer.
Enjoying Your Van
You’ve gone through the process of getting a commercial vehicle, now you can enjoy driving your van for the length of the financial agreement.
Return Your Commercial Vehicle
Once your contract has reached its term, depending on whether you chose to have a final payment, you’ll have the option of returning the vehicle and starting a new finance agreement for another van or making the balloon payment agreed upon at the beginning of the finance and enter the secondary rental period.
If your business ceases trading during the period of the van lease, you should contact your credit broker to discuss your options.
What Are The Different Leasing Options?
Here is a quick rundown of some of the different leasing options available and the difference between them:
Business Contract Hire
Business contract hire is when you lease a vehicle for a set period of time at a fixed monthly rental and initial payment. In business contract hire there is the option of adding maintenance packages that would save you money on routine servicing and consumable items.
Van Finance Lease
Finance Lease is similar to a contract hire in the sense that you also have a fixed monthly rental, the difference is that finance lease agreements have the option of adding a final lump payment that allows you to sell the asset at the end of the agreement on behalf of the leasing company, and achieve a profit, or pay the final balloon payment and enter a secondary rental term.
Van Lease Deals
When leasing a van it is important to get the best van lease deals for your business. Right now there is a huge range of deals to suit every budget and need, from lower monthly payments to large fleet deals with great agreement terms.
Here at Crusader Vans, we are proud to work with the largest lenders in the market, allowing us to offer deals at very competitive prices for any van in the market, whether you’re a limited company or a sole trader.
Our account specialists have more than 25 years of experience in the automotive sector and are more than happy to help you get the best solution for your business. Just in touch for a free quote.
Can I lease an Electric van?
Electric vans are growing in popularity as commercial vehicles due to their environmental benefits and improved technology. Here at Crusader Vans, we take great pride in our range of electric vans available for leasing. Just get in touch for more info.
