Most people who lease a van never look back. Those who lease vans quickly reap the benefits of this with both their business and their personal lives as they realise how much more convenient it really is.
There are massive advantages to leasing a van for business and personal use and it is now more popular than ever before to lease. However, leasing a van is still a big commitment and you need to be sure that this is the right option for you. If you want to know more about whether or not you will be eligible to lease a van and what the advantages are, be sure to carry on reading.
What You Need to Know About Business Van Leasing
For any business, one thing that you do not want your business to have to worry about is items that are going to quickly depreciate in value and this is exactly what a van will do. Selling a van for profit becomes harder and harder as the years go on.
When you lease a van, the main difference here from buying one is that you will not actually own the van at the end of your contract period. You will be required to pay a deposit at the beginning of your lease and then you will have to pay a fixed monthly fee for a fixed period of time and this, on average, is around two years. One of the biggest advantages of leasing a van is that you can make budgeting for your business a lot easier as you will know exactly how much is coming out of your accounts every month for this expense and you don’t need to worry about an outright buying cost being on your company’s books. Leasing a van is still a finance contract and so to be eligible, you and your business will need to have your finances in good order and those with a bad credit history will struggle to be accepted for a van leasing contract. It is also worth noting that leasing payments are allowable against tax and so you won’t be missing out compared to buying a van outright. Furthermore, as you will know the exact length of time for your lease period, this means you will know exactly when you will be required to take out a new contract and will need a new van. Many people love that with a van leasing contract, they tend to come with maintenance packages and so this means you do not have to worry about servicing and repairs as this can quickly become costly.
There are not too many disadvantages with van leasing, however, there are a few things that you need to keep in mind before you sign a contract. Firstly, you will be quite restricted in the number of miles that the van can do and if you exceed this mileage you will pay a heavy price for it. What’s more, with van leasing, you will need to make sure that you return the van in good condition or you will be charged for this too.
What You Need to Know About Personal Van Leasing
Van leasing is most commonly used with businesses, however, you can also lease a van personally too. Everyone wants to be able to drive the latest and best vans and van leasing offers you exactly this. For example, the New VW Transporter vans have become a cult buy and while you may not have previously been able to afford this outright, when leasing, this becomes a much more affordable option. There can be huge upfront costs when you buy a van such as this and this is why leasing appeals to people more.
There is not too many differences between leasing for your business and leasing personally and the main difference is the amount of VAT that you can reclaim. At the end of your contract, there is not much that you really have to deal with at all. You will need to ensure that it is returned to a sufficient standard but the great thing is that you can simply hand it back without having to worry about the stress and hassle of selling it to someone else. You can then choose whether or not you want to lease another vehicle and in most cases people do tend to do this. Some contracts also offer you the option of a balloon payment where you can make a final large payment to own the vehicle outright.
Van leasing is a fantastic option for both businesses and to use personally and as you can see there are plenty of great benefits to doing this over buying a car.