Leasing a Van
If you run a business, it can be difficult financially to run both a car and a van. This can be even more financially prohibitive if you are just starting out and you really want to save as much money as possible. At the start up stage, buying both can be extremely dificult and may well be out of the question. One alternative is to lease a van.
Leasing a van can be relatively cheap and there are several benefits business wise in leasing a van. The most obvious one is that the cost will be spread out over a longer time period, which will help your cash flow. Also, if your requirements change then you have the option of trading in your vehicle for a different model. All leases will have minimum terms and there will probably be penalties for any changes you make early on, so be sure you know what these are before you commit to leasing a van.
Some leasing companies provide servicing and repairs, which is an extra benefit if you are doing a lot of miles. But check out whether this includes recovery, If not, it may be better to get cover elsewhere ie the RAC or AA. Another benefit to leasing is that you might be able to purchase the vehicle at the end of the leasing period. Explore this option and find out the costs. The leasing company will have a good idea of the van's Residual Value (RV); in other words how its value depreciates over time as you use the van.
The leasing company may set a maximum mileage for the year and there may be a rate per mile if you exceed this. So, estimate how many miles per year you think you will do and ensure you know what the penalty is if you exceed this. Finally, there are many extras you can add to a commercial vehicle or van such as lifting equipment and panelling. A leasing company that specialises in commercial vehicles or vans can add these for you. Again, make sure that any upgrades are going to be worthwhile for you and that you get value for money. It's often tempting to add extras that you don't really need.
Expect to pay roughly GBP190 per month for a good quality commercial vehicle or van such as a Renault Kango or Citroen Berlingo up to GBP275 for a Ford Transit or Toyota Hiace. Certainly also make sure that you have good quality commercial vehicle insurance or van insurance.
Van Insurance Direct aims to give you as much information as possible about van insurance and commercial vehicle insurance and why you must have this specialist insurance for your vehicle. We have gathered together links to a selection of the top online van insurance providers but we do not provide or endorse any particular product or make recommendations in any way. Please ensure that the van insurance or commercial vehicle insurance product that you purchase from any online provider meets your needs and that the provider is correctly regulated by the Financial Services Authority (FSA).