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Van Leasing and Van Finance – should I lease or finance?

2nd February 2019

The complete guide to van leasing and van finance.

2nd February 2019

Should I lease vehicles for my business? What are the advantages?

We often get asked this question and the fact is that there are loads of real advantages for small, medium and large businesses in leasing vehicles rather than buying a van or car outright…with a few notable exceptions!

Advantages of Leasing

For starters, you get to use a new vehicle which looks good and enhances the perception of you business. Perception is important and an ageing van isn’t exactly a great advert whilst a nice new shiny van sends all the right signals to prospective clients and customers as it resonates success and consumers are drawn to companies that give off the impression of success. Once you are happy that leasing is for you you might want to check out our Special Offers page for amazing cars and vans deals.

Cash flow is critical for any business. If you buy a new car or van for your business, it depreciates the moment you or one of your employees get in. The VAT on the vehicle goes straight to the tax man, dealerships need to factor in their costs or running their business and a car or van could lose up to 40 per cent of its value even if it’s virtually new. Why make depreciation your headache?

By paying smaller amounts on a regular basis, small and larger businesses alike can budget better and you can keep precious capital in your business account rather than giving huge sums to a car or van dealer. Its better to have the money in your bank account!

In some cases, leases and business contract hire qualify as being “off balance sheet” altogether meaning that you can keep your debt to value ratio low which is important if you need to borrow money for other uses within your business or you want to maintain a solid credit rating.
Asset repayments in a leasing contract normally count as a business expense resulting in even more tax efficiency, though you should always consult your accountant as tax rules change from time to time.

Ask yourself the question – Would I rather fork our huge sums of money for an asset that immediately depreciates or am I better off keeping the money in the business & releasing it slowly & on a regular monthly budgeting basis retaining all the flexibility of leasing a car or van?

What other good reasons are there to lease a new or used van?

Just because a car or commercial vehicle is leased, does not mean that there are not massive bargains. Leasetree’s partners order huge amounts of new cars for leasing – for which they get an equally large discount which they can pass onto you.

In addition, when models come to the end of their production the manufacturers want to move onto producing the new versions and release the older (but still brand new) model at a discounted price which will reflect in lower lease costs so bargains are still there to be had when it comes to leasing agreements.

As a further plus, it’s possible to roll maintenance, servicing and even the likes of GAP insurance into the car or commercial vehicle lease deal. Amazingly, you can even include the likes of tyre replacement into the deal so that leasing truly becomes a hassle-free option. Imagine no concern about depreciation, cash flow, maintenance, insurance, servicing…all taken care of in one budget-friendly monthly payment with peace of mind all round and the knowledge that when the lease is finished you can simply hand the van or car back…and get another…new one!

On the point of newness, cars and vans improve every year whether it be safety standards and equipment or driver and passenger advances. Think back 5 or so years when Bluetooth was not the norm in new vehicles – by having the flexibility of being able to hand the vehicle back when the lease is up, you stay ahead of the safety and tech trends with options like lane assist and blind spot recognition.

It’s important to note that you can make even further savings by leasing a used vehicle and Leasetree has access to nearly new and used vans and cars which are available on business van lease deals and on business car lease deals.

We also have no deposit lease business deals or deals where you can flex the initial rental or deposit and your new van or car can be delivered to anywhere in the country. Traditional business car finance and business van finance deals like Hire Purchase are also available.

Whatever way you look at it, leasing has massive advantages for businesses no matter their size which is why more and more businesses are switching to lease.

We have all of the major business lease and finance options available to you from Business Contract Hire (BCP) through to Business Contract Purchase (BCP), Hire Purchase (HP) and Lease Purchase (LP).

A few Notable Exceptions where leasing is not the best option:

  • If you expect to do loads on miles in the car or van then leasing might not be for you. Lease vehicles tend to have fairly restrictive mileage limits before you incur excess mileage charges. Of course, you can estimate mileage before you start your lease and build this in but if you have unexpected high mileage then excess mileage charges can add up. Consider an HP deal instead where you can do as much mileage as you like as the car or van is yours at the end of the term.
  • If you expect your business vehicle to take a lot of punishment or incur cosmetic damage then leasing might not be for you. When it comes time to hand the vehicle back you will be subject to a fair wear and tear test, for which a definition can be found here, and if the van or car is found to fall outside this condition charges can apply. Builders, for example, might swerve business leasing & opt for Hire Purchase if they expect the vehicle to take a lot of punishment.

Leasetree make it easy for you to get the best and wide range of van or car lease or finance deals from our huge panel of partners and lenders.You can find our Business lease page here or alternatively search all our Special Offers here.

All our special offers have both a personal and business lease price – simply click on the special offer you are interested in and the personal and business excl VAT prices are clear for you to see.

If you don’t see a car or van you are after on a business lease please just fill out the “Get a Quote” form which can be found on the same page or, alternatively click here for the super fast “Get a Quote” form.

If you have found a business van or car already and just want the finance then please fill in the just finance application here.

Remember, our service is completely free – now that makes business sense!