When you opt to lease a van, you'll pay fixed monthly payments for a set period of time, usually between 2-5 years. There may, or may not, be a deposit required depending on the terms of the lease.
The difference between a lease agreement and purchase agreement is that unlike purchasing a van, you do not own the vehicle at the end of your payment term, unless you have chosen to take out a PCP agreement.
A PCP agreement pre-determines a balloon payment value for the vehicle, which means at the end of your lease term you have the option to return the vehicle, upgrade it, or pay the agreed balloon payment to purchase it outright.
A PCP offers some degree of flexibility: you can either choose a larger balloon payment and smaller monthly payments, or a smaller balloon payment and higher monthly payments.
So, considering the options, how should you acquire your new van?
We've weighed up the pros and cons of van leasing in order to help you choose the best way to acquire your new company vehicles.
Pros of Van Leasing
- Low or no deposit options available
- Set monthly payments
- No concerns about depreciation
- Lower maintenance costs (particularly with a commercial vehicle service contract)
- Option of upgrading every few years helps maintain a reliable fleet
- No trade-in hassle at end of contract
Pros of Purchasing a Van
- Trading the van's value against a new purchase gives you a cash deposit
- No mileage limits with an outright purchase
- You can sell or trade the vehicle whenever you want
- You can make significant modifications
The are merits to both leasing and purchasing. But what if you're still unsure about the direction you'd like to take? Or maybe it's too difficult to forecast your company's requirements a year from now?
In that case, it may be worth considering a Flexi Rent agreement.
What is a Flexi Lease?
Flexi rental is a short-term rental hire that enables a business to run company cars and vans without any long-term financial commitment.
This can help enormously if you're recruiting new staff because it offers the flexibility to return company vehicles if employees don't remain in the business.
A flexi rental can also keep your staff motivated with the incentive of a new car on a regular basis. Indeed, a flexi-lease can perfectly bridge the gap between conventional short-term car or van rental and long-term leasing.
We hope this article has helped you understand some of the benefits of leasing a van, and some of the other options you have available when choosing your next company vehicle.
Every month, more and more businesses are trusting us to find the right deals for their company vehicles. To find out more about our lease, purchase or flexi options, simply give us a call today on one of the numbers below and we'll be ready to help.