Factors to Consider When Looking to Lease a Van
The van market is rapidly expanding with manufacturers such as Ford, Citroen and Mercedes-Benz regularly extending their van range. That said, you want to ensure you find the ideal new van for you based on factors including size, fuel type and payload, just to mention a few. Often a vehicle is one of the most valuable possessions you own so here are some of the main factors to consider when choosing your van.
Petrol or Diesel?
This is an important decision to make when getting a new van because in the long run it could save you money. Both fuel options have their own benefits and so it’s about deciding which one is best for you. Petrol tends to be cheaper per litre to purchase than diesel, however diesel engines are usually more efficient. Of course, there is also the options of an electric van or a plug-in hybrid which are becoming increasingly popular nowadays. Some of the electric vans available include the Mercedes eVito, Renault Master ZE and Nissan e-NV200. Alternatively, plug-in hybrids can be a good idea if you're looking for a greener form of transport but don't think a full electric van is right for you.
Method of Funding
There are various methods of funding available when it comes to leasing a van. Each method has its own advantages and points to consider which are worth thinking about when choosing your lease. Below we've listed the types of funding available for businesses:
-BCH (Business Contract Hire): This method of funding involves a fixed term, mileage rental agreement providing fixed cost motoring with no depreciation risk. This method means you will return the vehicle back to the finance company at the end of the lease. BCH is for leasing through your business instead of as an individual (personal). There is the option to add a fixed cost maintenance package covering all servicing, maintenance, tyres & roadside assistance.
-Contract Purchase: This involves a finance agreement based on a pre-agreed contractual mileage with an option to purchase the vehicle. At the end of the agreed contract, you could opt to return it, dispose of the vehicle to a 3rd party (any equity is yours to keep) or keep the vehicle by paying the Optional Final Payment.
-Finance Lease: This method of funding is a flexible funding product designed for business users to spread the cost of vehicle usage over a period of up to 5 years. At the end of the lease, you can either dispose of the vehicle to a 3rd party (any equity is yours to keep) or retain the vehicle by paying the final payment (if applicable). In this instance there is a small annual cost and there is no option to own the vehicle.
If you want to lease a van, you should first be aware of what your annual mileage is. It’s important to select an appropriate mileage allowance for your lease contract. You should be aware that if you exceed your mileage allowance for the complete duration of your contract then an excess mileage charge will be applied.
Here at GB Vehicle Leasing we offer a huge range of fantastic van leasing deals on all body-types including large, medium and small vans. It's important to consider what you will be using the van for and therefore the size you require. Remember, the van needs to be suitable for the complete duration of your lease contract. You could do some research or read reviews to find out which vehicle best suits your requirements. Similarly, you choose consider the number of seats in the van and the maximum payload. What are your specific requirements?
When looking to lease a van, you need to ensure the monthly rental is realistically affordable for you. A variety of payment profiles are available to achieve your desired monthly rental. Before looking to lease, you should assess your finances and decide how much you can afford to pay each month as well as a realistic initial rental. Similarly, the whole life cost of the van such as insurance, maintenance and fuel costs should be considered as this will vary depending on the van you choose. You could also consider taking out a maintenance contract for your vehicle. By taking out a maintenance contract, for a fixed monthly fee, the vehicle’s servicing, maintenance and MOT testing costs will be covered for the duration of the contract.
Thank you for reading our blog, we hope you've found it useful. If you’re interested in finding out more about leasing a van or have any questions, please contact us on 0161 667 5338. Alternatively, click here to view our current offers.