Should I Lease or Buy a Van?

Lease or Buy a Van?

Vans are essential vehicles for any individual or business looking to haul heavy loads, make deliveries or ship precious cargo.

But is it better to buy a van, or lease it?

In this guide, our van leasing experts at Select Car Leasing will weigh up the benefits and potential drawbacks of van leasing to help you find out if it’s right for you.

What is Van Leasing?

Van leasing is a vehicle financing option that lets a business or individual enjoy a van for a specified period. You might consider it like a long-term rental agreement.

Instead of purchasing the vehicle entirely, the person leasing the van pays a monthly payment to use the van. Your plan might also include maintenance and servicing charges, as well as insurance options — these will be outlined in the monthly charges when you sign up.

At the end of the lease term, the van is sent back to the finance company. Leasing helps people access brand new vans at a manageable monthly price rather than having to find a large lump sum to purchase one outright.

It also provides customers with flexibility around their agreement without the commitment of full ownership. Want to change your van every two or three years? Van leasing helps you to do just that.

Should You Lease a Van for Business?

Leasing can prove a smart choice for companies looking to provide a fleet of vans for their team.

As with any financial decision, there are pros and cons, and it’s crucial to evaluate the specific needs of your business before deciding if leasing is the right option for you.

What are the Advantages of Van Leasing?

Van leasing has several benefits that can make it the preferred choice over buying a van for your business. These include:

• Lower Upfront Costs: Leasing requires a smaller initial payment than purchasing a van outright. This is useful for businesses that might have limited expendable cash flow.
• Tax Benefits: Van leasing payments can often be deducted as business expenses.
• Included Maintenance: Some lease agreements include maintenance and servicing, reducing repair costs.
• Flexibility: Leasing lets buyers upgrade their vans to newer models at the end of each lease term, keeping a fleet of working vans modern and efficient.
• Resale Protection: You’ll never have to worry about a van’s resale value or depreciation, as it is simply returned at the end of a lease.
• Easy Budgeting: Fixed monthly payments help you to manage your finances while modern vans serve expensive repairs that older vehicles might suffer.

For more information, see our comprehensive guide to thebenefits of van leasing.

What are the Disadvantages of Van Leasing?

With van leasing, there are some important things to consider. These include:

• Mileage Restrictions: Lease Agreements can come with mileage limits, which may lead to extra charges if exceeded.
• Customisation Limitations: Most of the common, small modifications you might wish to make can be enjoyed when leasing, particularly if you can reverse them at the end of your agreement. For more complicated modifications, you’ll need to seek permission from the vehicle funder.
• End-of-lease Obligations: At the end of each lease, a van must be returned in good condition. This is known as ‘Fair Wear & Tear’ and they’re industry standards stipulated by the British Vehicle Rental and Leasing Association (BVRLA), of which Select is a member.

What is the Cost of Leasing a Van?

At Select Car Leasing, we offer leasing on brand-new small vans, medium vans, large vans, pickups, and van conversions.

You can lease a van for less than you might think. Why not check out our van leasing deals for some of our best-sellers?

• Ford Transit Custom
• Citroen Berlingo
• Volkswagen ID.Buzz Cargo
• Ford Ranger

If you’re unsure which van is right for you, browse our van leasing guide to help find the right van for you or your business.

Alternatively, if you know what van you’re looking for, then shop our range of market-leading van leasing deals.

SHOP MORE VAN LEASES

Frequently Asked Questions (FAQ)

Q: Can You Lease a Van with Unlimited Mileage?

• A: Unlimited mileage van lease deals are incredibly rare and the vast majority of funders do not offer them. It may be possible to adjust your mileage limit during your lease term, if you think you’re going to be over or under the stipulated number of miles. It’s called a ‘mileage extension’ or ‘mileage reduction’. Not all funders offer it. But it’s typically available as an option once you reach six months into your contract but can’t be renegotiated when there are only six months left on your agreement. It’s important to review your lease agreement carefully to understand any additional fees or costs that may be incurred.

Q: Can I Lease a Van Through My Limited Company?

• A: You can lease a van through your limited company. This lets you claim VAT and vehicle expenses as business costs. However, it’s important to make sure the lease is in the company’s name to maintain proper records for tax purposes.

Q: Can I Claim VAT Back on Van Lease?

• A: You can claim back VAT on a van lease if the vehicle is used solely for business purposes. If the van is used for both personal and business use, you can only claim VAT on the business portion of your expenses. It’s important to keep an accurate log of your journeys to use as supporting documentation to support any claims you make.

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Where To Next?

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