Used Van Leasing

In today’s fast-paced business world, used van leasing has become an increasingly popular option for companies looking to expand their fleet without breaking the bank. This cost-effective solution allows businesses to access reliable transportation while maintaining financial flexibility. Used van leasing deals offer a range of benefits, from lower monthly instalments to reduced VAT payments, making them an attractive choice for enterprises of all sizes. See vans on finance

For businesses seeking affordable transportation solutions, used van leasing presents a compelling opportunity. This article explores the top van lease deals available in the market, factors to consider when leasing a used van, and the potential business benefits of this approach. From contract hire options to mileage allowances, we’ll delve into the key aspects of used van leasing, helping you make an informed decision for your company’s vehicular needs. Source

Understanding Used Van Leasing

What is Used Van Leasing?

Used van leasing is a long-term rental agreement that allows businesses to access reliable transportation without the hefty upfront costs associated with purchasing a new vehicle. It involves paying a monthly fee to drive a pre-owned van for a set period, typically ranging from two to four years. This arrangement is similar to renting, but for an extended duration. At the start of the contract, lessees usually pay a small initial rental, followed by fixed monthly instalments throughout the lease term.

Benefits of Used Van Leasing

Used van leasing offers several advantages for businesses:

1. Cost-effectiveness: Used vans have a lower initial cost, making them more accessible for businesses on a budget. The fixed monthly payments allow for better financial planning and cash flow management.
2. Slower depreciation: Pre-owned vans often depreciate at a slower rate compared to new ones, providing better value for money over the lease term.
3. Flexibility: Leasing agreements offer flexible duration and mileage terms to meet specific business needs.
4. No asset depreciation concerns: At the end of the lease, the van is simply returned to the provider, eliminating worries about selling a depreciated asset.
5. Tax benefits: For VAT-registered businesses, lease payments can be claimed as a tax-deductible expense.
6. Maintenance packages: Many leasing companies offer maintenance, servicing, and tyre packages as part of the monthly fee, reducing unexpected costs.

Potential Drawbacks Used Van Leasing

While used van leasing has numerous benefits, there are some potential drawbacks to consider:

1. Limited warranty: Used vans often come with a more limited warranty than new ones, which may not cover all potential issues.
2. Maintenance costs: Older vans may require more frequent maintenance or repairs, potentially leading to higher costs during the lease term.
3. Outdated features: Used vans may lack the latest technology, safety features, or fuel-efficiency improvements, impacting driver comfort and productivity.
4. Mileage restrictions: Lease agreements often include mileage limits, with excess mileage charges applying if exceeded.
5. Early termination fees: Ending the contract early can be expensive, so businesses should be confident in their long-term needs before committing.
6. Wear and tear charges: Vehicles must be returned in good condition, with charges applying for damage beyond fair wear and tear.

Top Affordable Used Van Leasing Deals

Small Vans

Small vans, also known as city vans, are ideal for sole traders and small businesses operating in urban environments. These compact vehicles offer a balance of efficiency and practicality, with typical load dimensions of 1.7 metres in length, 1.5 metres in width, and 1.2 metres in height. They’re perfect for businesses such as DJs, florists, photographers, couriers, painters, and electricians.

Several affordable leasing options are available for small vans. For instance, the Citroen Berlingo M 1.5 BlueHDi 650Kg Enterprise 75ps is available from £149.38 per month (excluding VAT) on a 24-month contract with 8,000 miles per annum. Another option is the Fiat Fiorino Cargo 1.4 8V Fire Tecnico Van, which starts at £149.30 per month (excluding VAT) on a 48-month contract with 10,000 miles per annum.

Medium Vans used van leasing

Medium van leasing has become increasingly popular due to its flexibility and affordability. It allows businesses to drive a new van every few years without worrying about depreciation or selling the vehicle at the end of the term. This option is particularly beneficial for small businesses or startups that need to manage their cash flow carefully.

One standout option in this category is the Ford Transit Custom 280 L1 FWD 2.0TDCi 136 EcoBlue Limited. Another popular choice is the Vivaro Van L1 H1 1.5D 100 2900 Prime. These vans offer a good balance between load capacity and manoeuvrability, making them suitable for a wide range of businesses.

Large Vans Used Van Leasing

Large vans are built to handle big and heavy jobs while delivering peak performance on the road. They typically have load space dimensions of 3.4 metres in length, 1.7 metres in width, and 1.7 metres in height, with a payload between 1200kg and 1500kg. These vans are ideal for businesses involved in parcel delivery or construction.

Popular large van options include the Volkswagen Crafter, Mercedes-Benz Sprinter, and Ford Transit Luton. These vehicles offer extensive storage space and various configuration options to suit different business needs. Many leasing companies provide flexible business lease contracts to accommodate various budgets and requirements.

For all van sizes, many leasing deals come with no deposit options, manufacturer warranty, road tax, and breakdown cover included. Some companies also offer fast lease services for quick delivery on in-stock vans and free mainland GB delivery direct to your business.

Factors to Consider When Leasing a Used Van

Mileage Allowance

When leasing a used van, the mileage allowance is a crucial factor to consider. This allowance determines the maximum number of miles you can drive annually without incurring additional charges. It’s essential to choose a realistic figure that aligns with your business needs. Review your past driving habits or calculate your average monthly mileage and multiply it by 12 to estimate your annual usage. Most finance companies limit mileage allowances to 50,000 per annum, with many funders not allowing vehicles to be handed back at the end of a lease agreement with more than 180,000 miles.

Lease Term

The duration of your lease is another important consideration. Typically, van leasing contracts run from 2 to 5 years. The length of the lease affects your monthly payments and the overall cost of the agreement. A longer lease term often results in lower monthly payments but may mean you’re committed to the vehicle for a more extended period.

Deposit and Monthly Payments

Leasing a used van usually requires an initial rental or deposit, which is typically 10% of the vehicle’s leasing value. This deposit can sometimes be spread across your monthly instalments to ease the financial burden. Monthly payments are determined by factors such as the cost of the vehicle, interest rates, and the van’s estimated residual value at the end of the lease term. It’s worth noting that some companies, like Vanarama, don’t charge admin or arrangement fees.

Maintenance and Repairs

Maintenance responsibilities are an important aspect of leasing a used van. Lessees are typically responsible for ensuring proper maintenance and care of the vehicle, including regular servicing, oil changes, and tyre rotations. Some lease agreements offer maintenance packages for an additional monthly fee, covering routine maintenance, servicing, and MOTs within the contract duration. It’s crucial to understand the terms of the warranty and what it covers to avoid unexpected costs.

Conclusion Used Van Leasing

Used van leasing has a significant impact on businesses looking to manage their fleet economically. This approach offers a blend of cost-effectiveness and flexibility, allowing companies to access reliable transportation without the need to tie up substantial capital. What’s more, the slower depreciation of pre-owned vehicles and potential tax benefits make this option particularly attractive for small to medium-sized enterprises.

To wrap up, while used van leasing presents some challenges such as potential maintenance costs and mileage restrictions, the advantages often outweigh these concerns for many businesses. By carefully considering factors like mileage allowance, lease term, and maintenance responsibilities, companies can find a leasing deal that aligns with their specific needs and budget. This strategy enables businesses to stay competitive and agile in today’s fast-paced market environment.

FAQs Used Van Leasing

Can I rent a van through my own company?
Yes, you can lease various assets to your limited company, including office space, machinery, equipment, vehicles, computers, and property. However, certain assets might need specific considerations, so it’s advisable to consult with a professional to ensure your leasing arrangements comply with legal requirements.

Is leasing a van a good option if I am self-employed?
Definitely! Leasing a van when you’re self-employed offers several advantages such as tax benefits, lower monthly outgoings, coverage under a full manufacturer’s warranty, the chance to regularly upgrade to the latest models, and predictable costs.

Are van leases fully tax-deductible?
Yes, leasing a van is considered a fully tax-deductible expense. Since you don’t own the vehicle but are renting it, it counts as a continuous expense. You can claim back 100% of the tax, provided you meet all the necessary criteria.

Is it possible to lease a second-hand van?
Absolutely, leasing a used van can be a financially viable option. It allows for significant cash flow relief compared to purchasing outright, reducing early financial pressure on your business. Additionally, the lease payments on used vans are tax-deductible.