Van Leasing Explained - Select Van Leasing

We're open for business, with safe delivery options available. NHS benefits available. Coronavirus notice Read more

Alternative text 4.9 out of 5 22,416 reviews

Mon to Fri: | Sat:

Van Leasing Explained

More and more people and businesses now lease rather than buy their van or van fleet. In 2021, nearly 900,000 (or 1 in 5) vans on UK roads are lease vehicles, highlighting the sheer popularity of leasing in the UK today!

What Is Van Leasing? Flexibility, Choice And Freedom

Van leasing is like renting, in that you're using a particular van, for an agreed length of time (usually between 2 to 5 years), for a set fee.

You have complete choice over make, model and specifications, including features such as colour and trim. The contract is tailored to your needs in terms of the annual mileage, length of contract and how you’d like initial and subsequent payments structured.

At the end of the contract, the van is simply returned, checked over, and payments cease, leaving you to take another lease, should you wish to.  It really is that easy.

The cost of the van lease is based on several factors

  • Manufacturer’s recommended on-the-road vehicle price
  • The van’s end-of-lease estimated or 'residual' value
  • The estimated annual mileage
  • The length of the lease
  • The admin fee

Business Van Leasing. Peace Of Mind, Real Business Benefits

Business van leasing is when a van is leased and either used solely for business purposes or for a mix of business and personal. The van is leased in the name of one of the following business entities:

  • A sole trader/self-employed person
  • A Limited Liability Company
  • A Public Limited Company (PLC)
  • A Limited Liability Partnership (LLP)
  • A charity, Embassy, Local or Government Authority

Business van leasing offers businesses a whole host of excellent benefits over buying a commercial vehicle. These include minimal capital expenditure, fixed monthly outgoings, great tax advantages and balance sheet benefits, as well as no depreciation risk. Plus of course, you and your employees get to drive a brand-new, fully warrantied vehicle, and at the end of the lease you just hand back the keys. It couldn't be simpler!

Start Your Van Search

Who Is Eligible For A Van Lease? Well... Most People! 

 While the criteria differs depending on whether you're leasing as an individual or as a business, don't worry, our expert van leasing consultants will guide you through the process.   

Business Van Leasing

Eligibility Criteria

Regardless of size, your business may be eligible for business van leasing if it is one or more of the following entities:

  • A sole trader/self-employed person
  • A Limited Liability Company (LTD)
  • A Public Limited Company (PLC)
  • A Limited Liability Partnership (LLP)
  • A Charity, Embassy, Local or Government Authority

Other businesses may also be eligible, depending upon circumstances.

Business Van Leasing

Things To Consider

Your business must be currently trading, have a suitable income and profit level (assessed during the application process), plus be able to provide the following:

  • Your business details (name, address, etc.)
  • The personal details of the director or business owner
  • Your business bank details (bank name, account number, sort code)

Business applications undergo a credit check to assess credit strength and risk status, however this is often a relatively quick, easy process.

In some circumstances - for example if your business is new or has been declined for credit - we may also require one or more of the following:

  • 3 months of recent business bank account statements
  • VAT returns (if applicable)
  • A director’s guarantee/personal guarantee
  • Year-end financial accounts

Personal Van Leasing. The Business And Lifestyle Option

Personal van leasing is a contract taken out by an individual, rather than by a business or company. The vehicle is used either solely for personal purposes, or for a mix of business and private use.

As well as being great for purely private purposes, a personal lease can also be a great solution, both for new businesses who don’t have all of the required documents to obtain a business lease, as well as for businesses who for other reasons are currently ineligible for a business lease contract.

Whatever the reason, the great news is that if you do find you aren’t able to get a business van lease, a personal lease will still provide you with a brand-new van, at an incredibly affordable set monthly fee, as well as the opportunity to claim back tax if you're a taxpayer, plus the vehicle can also be being used for business purposes beyond simply commuting to/from work.

Start Your Van Search

Personal Van Leasing

Eligibility Criteria

Personal leasing is a great option for those looking for a van for purely personal usage, however it can also be ideal for businesses who find they don’t meet the criteria for a business lease contract. 

The good news is that if you don't qualify for a business lease, you're still likely to be able to get a personal lease in your own name.

With personal van leasing, your application is a non-business application, but you will need to meet the following criteria:

  • Be over 18 years old
  • Hold a full UK Drivers Licence (registered at your current address)
  • Provide a minimum of 3 years address history
  • Provide a minimum of 3 years employment/education history
  • Have a regular, secure income
  • Be on the electoral role at your current address
  • Not have been declared bankrupt, nor have CCJs or IVAs against your name
  • Be successful with your credit application

Personal Leasing

Things To Consider

As with business leasing, part of the personal lease application process requires you to satisfy a personal credit check to assess your credit strength and risk status.

Finance companies make their decision on whether to offer finance to a customer based on their past and present financial circumstances, so it's obviously easier to lease a vehicle if you have a healthy credit status.

If you have a poor credit rating however, don't worry too much as you may still be able to lease using a funder who specialises in helping those with poorer credit history, including those who have recently moved to the UK to take up employment.

What Is The Process For Leasing A Van? Our 6 Step Journey

What Else Is Included In Your Van Lease? Everything You Need!

Full Manufacturer's Warranty

Just like any new car, all brand new lease vehicles come with a full manufacturer's warranty that typically covers the full period of the lease.

Breakdown Cover

All vehicles come with manufacturer-provided breakdown cover. This means that should you breakdown, depending on what's required, you'll either receive roadside help to get your vehicle restarted or alternatively, you and your vehicle will be taken to the nearest repair garage. Additional breakdown benefits may also be offered depending upon your contract and manufacturer.

MOT

MOTs are only required for vehicles older than 3 years. As the age of a vehicle starts from the date of the vehicle's registration, an MOT is not something that most people who lease will need to think about. However, if your lease is longer than 3 years, then legally your vehicle will need an MOT. If you have a maintenance package, both the arrangement and cost for the MOT are included as part of your package.

Road Tax

Road Tax is an excise duty applied to most vehicles that are driven or parked on UK public roads and is paid for by the owner of the vehicle, in this case the funder or finance company. Your lease vehicle will therefore come with its Road Tax paid as part of the leasing package.

Where To Next?

Select Van Leasing are one of the UK's largest independent specialists for van and car leasing. Whether you are looking for more information on leasing, electric vehicles or looking for special offers - here's some links to help you get to the right place!

Van & Pickup Special Offers

Browse our special offers on vans, pickups and commercial vehicles

Learn more

Business & Fleet

Comprehensive fleet management solutions for your business

Learn more

New to Car Leasing?

Discover the many advantages of leasing a vehicle

Learn more

All About Electric Vehicles

Check out our dedicated EV zone for all things electric

Learn more

Van Leasing Specialists

At Select Van Leasing, we pride ourselves on both our specialist van knowledge and our fantastic van special deals that combined, ensure that you'll find the perfect van lease to suit your needs and budget.