In this guide, we take a look at Commercial Vehicle Leasing aka. Van Leasing. We will cover the pro’s and con’s to this way of running vehicles and help you decide which is the best route for your business. A wide range of commercial vehicles is available on a lease, these include panel vans, crew vans, pickup trucks and minibuses.
What is Van Leasing?
You’ve probably already got an idea of the type of van you are looking for, so whether you just want a traditional panel van or you need something like a pickup truck, we can help you find the most suitable model and lease to fit your business requirements.
You choose the van, any options you may need, the colour, the mileage allowance and how long you’d like to take the vehicle for.
You will then pay an initial rental, followed by fixed monthly payments for the duration of the term you have chosen. Standard leases are the payments will be lower the longer you take the vehicle for, but it isn’t always best to take a van lease for more than 3 years.
Once you receive the van, you are able to use it for your business needs and purposes. Once the term has finished the vehicle will be returned to the funders.
Van leasing is an ideal way to run a vehicle through your business with lower upfront payments and it helps reduce the headaches that is associated with vehicle purchasing.
Who can apply for a van lease?
To be eligible for a van lease you need to be a sole trader, partnership, limited company (LTD) or a public trading company (PLC) based in the UK.
You will need to complete a credit application and your credit score and accounts need to qualify for a credit limit with the funder. Te lower the credit rating, the less chance you have of being eligible. Alternative funding is available if you are a new start-up business or non-status.
If you are the business owner, you will be required to provide details about yourself and your business, this can include providing a list of Directors, turnover and VAT registration numbers.
The underwriters will need to determine that the company can afford to make the monthly payments over the term as well as identifying the signing Director with a current driving licence and a utility bill dated within the last 3 months.
Why lease the van?
There are many options for those who are looking at getting a new van, more of those are listed below in this guide. But there are many benefits to leasing a van, here are a few:
Pros to leasing a van
Cons to leasing a van
If you opt for the maintenance package, it will cover you for routine services and other items as outlined in the agreement. If you don’t have this cover repairs could prove very expensive.
Every maintenance package is different depending on the funder, so make sure you understand what is covered, generally maintenance will cover:
When obtaining quotes for a van lease, always ask to see if the broker can provide costs with and without maintenance based on your mileage, then take the time to do the calculations to see if it is worthwhile.
If 2 or 3 years is too long, then wehy not consider a short-term van lease or van subscription. There are pros and cons to both and they may not be suitable for all trades.
Van Subscriptions offer a felxible month-to-month arrangement that can work out cheaper than using a traditional daily rental company. Some of the vehicles are also suitable to courier drivers. One payment covers all of the essentials including rental, maintenance, breakdown assistance, road tax and warranty.
Short-Term Van Leases tend to be 6 or 12-month contracts which will be fixed for the duration. They are usually brand new or pre-registered and are available from 1-3 weeks from the date of order, if the vehicle is showing as in-stock.
If you would like any further information on van lease deals, speak to the Cocoon Vehicles on 01332 290173 or drop us a line using the CONTACT FORM below.
We can usually quote on all makes and models of commercial vehicles, and all body types such as panel vans, crew vans and pickup trucks. We can also provide commercial vehicle leasing quotes to individuals.