The basics you need to know about van leasing
Van leasing has rapidly grown in popularity over the last few years and it is not hard to see why once you have an understanding of how it works and all the great advantages that come along with it. If you are unsure about whether or not van leasing is right for your business, carry on reading to find out more about it and its pros and cons.
The basics of van leasing
Let’s start off by taking you through the basics before signing on the dotted line of a van leasing contract. Many people wrongly assume that van leasing is going to be more expensive, however, it makes sense to do it as long as you have good credit, are going to be driving less than 15,000 miles a year, and if you want a new car every few years.
Many people treat car leasing as a method of renting, however, this is not really the case and it is actually another form of vehicle financing. When leasing a van, you will have to pay the vehicle’s depreciation and also the interest payment.
It is also important to note that when leasing a van, your business is with the finance company rather than the actual dealer. After negotiating on a monthly price for the vehicle, it is the finance company who will buy the vehicle from the dealer and then lease it to you.
The advantages and disadvantages of van leasing
Before you lease a car, it is important that you weigh up the pros and cons as to determine whether or not van leasing is right for your business. There are definitely more advantages than there are disadvantages to leasing a vehicle as this is undoubtedly the best year for van leasing in UK, but with the main disadvantages being that it can be expensive over the long term, your insurance may be more expensive, you cannot customise your vehicle and you will also have to watch the number of miles that you are driving as you will be heavily penalised for going over your limit.
There are many great advantages to leasing a vehicle. This includes not having to worry about repair costs, the monthly payments are low, you don’t have to try and sell the vehicle at the end for a great price and you will be able to enjoy the luxury of driving around in a brand new car and being able to switch it up every couple of years.
Calculating your lease
You’ll need to be on the ball with your number if you want to get the best car lease deal that you can as it can quickly become quite confusing when you are comparing different ones. It is important that you understand exactly how a lease is calculated but what’s great is that there are simple methods that will allow you to do this. We would recommend working out what the monthly cost per £10,000 worth of the vehicle is and then this should be a good indication or whether or not you are being offered a good deal.