If you are interested in leasing a van, then it is a good idea to familiarise yourself with how van leasing actually works. Leasing is a simple concept, but it can sometimes be so simple that it is easy to forget how certain parts are handled or what kind of rules you might need to follow while leasing something.
What is Leasing?
Leasing a van, in its simplest form, means that you pay a monthly fee to drive it. You are renting it, but for a longer period, often for a set amount of time rather than on a month-to-month or year-to-year basis. Once the period is over, you return the van – or potentially buy it as a fully-owned vehicle.
Since leasing and renting are very similar, it is easy to mix them up, but there can be some major differences depending on how the lease works. Most importantly, there can sometimes be rules and benefits relating to leases that do not apply to renting periods.
Why Should I Lease A Van?
Leasing a vehicle, especially a van, gives you a range of different benefits that you do not get when directly buying them. While some leases can be more expensive in the long-term if you continue them for years, they can also sometimes pay for themselves in numerous different ways.
It’s Affordable
Having the money to outright buy a new van is not a thing that many people can achieve. Even some businesses struggle to afford to buy new vans and fleet vehicles regularly, especially if they also need to modify them in certain ways or keep needing to repair older vehicles.
By leasing a van, you are paying a fraction of the cost every month – this can add up in the long-term, but it gives you a cheaper immediate solution with one simple monthly payment.
They’re Good-Quality
When you are van leasing, that lease comes from another company or business. Since you are handing the van back to them at the end of the lease, it is not your responsibility to sell the van once it starts to depreciate in value (or scrap it, if necessary).
This means that you do not have the problem of being forced to use an older model because it is all you could afford. Since the van is not technically yours, you can simply hand it back and get an updated model whenever it is available, and you are never stuck with a vehicle that is too old to use.
You Have Cover
Many of the companies that you can lease from will offer their own coverage, either from an insurance company or as part of their own policy. This means that you never need to worry about getting your own insurance – if a van’s engine suddenly breaks down, it is not your responsibility to replace it.
Keep in mind that some lease companies do expect you to get insurance or repair damages yourself, so you should always check this before you commit to leasing from them, just in case you can’t afford those repairs yourself.
Leases Create Savings
Apart from the leasing cost itself, leasing a van can also give you extra savings in other ways. It might change how you pay road tax (or if you pay it at all), take the responsibility of repair and servicing costs away, or just keep monthly costs lower when building a fleet of vehicles for business use.
Leasing Is Simple
While you still need to have a driver’s license and other valid legal details to lease something, it is a lot easier than buying. As long as you can arrange a fair cost and other important lease terms, you can have the vehicle leased in your name very quickly without putting down much money.
Since leasing is paid monthly (and you might get a reduced first-month cost), you also do not need to go through the hassle of confirming large payments with your bank or having to register a vehicle in the same complex way.
How Do I Lease A Van?
Leasing is quite a straightforward process, at least when you break it down into stages. First of all, you want to know what kind of van you are even looking for: like buying a car, you should know the sort of requirements your ideal van will fulfill.
Then, once you know what sort of vehicle you want, you have to think about the leasing time. A few months? A year? Two years? Two years with a possible extension at the end of it? Knowing a vague idea of the intended lease time can gradually narrow down your options.
Leasing
Once you get to the leasing stage and have decided on a company to lease from (whether you picked them specifically or just because they had your chosen van in stock), you need to arrange the lease itself.
Usually, you will have to go through a credit check so that the company knows you can actually make the payments, then agree to an initial deposit for the first month. This can take as long as you need it to take, but keep in mind that other people may want to lease the exact same van.
The exact paperwork and details you will have to manage can vary from company to company, but they will walk you through each stage. Always keep track of what you want in your head, and make sure that you can get a result you are happy with before you sign any official documents.
Getting Your Van
When the lease is agreed on, the van is delivered: this can either be direct from the dealer (driving it out on your own), delivered to your home/workplace, or arranged in some other specific way if needed. Be sure to talk with the leasing company about this, especially if you have certain requirements for the delivery.
The van is yours now! You can use it however you like, as long as you are not violating and lease rules, so do not worry too much about it being a lease vehicle. When your lease is up, you can return the van unless you would prefer to buy it.
Contact Purchases
Contract purchases are the act of buying a leased vehicle when the lease is up, essentially giving you the vehicle to own. This is a great option for people who really love their vehicle but do not have a way to afford to buy one on their own.
When you want to make a contract purchase, you usually either pay all at once (most common with companies) or you agree to a higher monthly payment that covers the buying costs. Eventually, you make a slightly larger final payment, which fully gives you ownership of the vehicle and allows you to treat it like any normal van rather than part of a lease.
How Much Does Van Leasing Cost?
Van leasing costs vary heavily. It depends on the van, the quality, the age, the overall state of the vehicle, how desirable it is, and what kind of plan you are getting. Sometimes, your age and experience can also factor into how much you end up paying.
This can mean that a very large, high-quality van from a prestigious brand might cost an extra 50% more than a much smaller, cheaper alternative. However, this is not always the case, and a lot of rentals are agreed on between the two parties when the arrangements are made.
In most cases, an average van may cost around $200 per month for a standard model, but it is impossible to say that £200 is a regular amount. Costs can vary so heavily that it is important to take a look for yourself, especially if you are leasing for yourself and not for a wealthy company.
What Else Should I Know?
Not all vans that you lease are going to be brand new. In fact, many might be older models that have been used quite frequently, even if they just entered the leasing market. This is not a problem, but it can mean that you will often see lease vehicles with minor wear and tear.
This is not always the case, and there are many lease options that are brand new and fresh off the production line. It is still important to consider that a lot of these vans are going to vary, and some might even have modifications made by their original owners, so you can’t always assume that they are factory-standard models.
It is important to always look at the details of the van you are leasing, too. It is easy to overlook certain packages or upgrades that might be present, and you should never assume anything until you have looked at listings or van descriptions. Some vans are reworked to be people-carriers, and others have been upgraded for hauling large loads.
If you are looking for a good van, take a look at dedicated sites like https://www.swissvans.com that host their own lists of leasing options. This can be a great way to compare what is on offer, check specific van designs, and see what kind of vans you might be able to afford with your current budget. They also have a good range of their own leases that might interest you.
