Van Leasing Guide

 

Fleet UK has over 20 years of experience in providing affordable and best value commercial vehicle lease deals. Whether you’re leasing a van for the first time or you’re adding another van or pick-up truck to your fleet, we will provide you with a professional, experienced and friendly account manager to help guide you through the leasing process.

Leasing a van through Business Contract Hire is a great option for businesses small or large that don’t have much liquidity to purchase vans outright and don’t want the worry or hassle of trying to sell them further down the line.

We supply a vast range of new or nearly-new vans from all of the main van manufacturers such as Ford, Volkswagen, Mercedes-Benz and Toyota. So if you’re looking for an electric van to handle cost-effective local journeys or a commercial vehicle with a heavier payload, you can search our van leasing offers and select the preferences which are key to you and your business.

There are flexible annual mileage and contract length terms to suit your business needs and you get to drive a van fitted with the most up-to-date safety and car technology as well as efficient engines.

When you find the van you want we can deliver it to your door, in any part of mainland UK free of charge.

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How does van leasing work?

Van leasing is a long-term hire agreement offering the exclusive use of a commercial van or pick-up truck for a set period. A typical leasing contract is between two to four years. During that time, you pay affordable and low-cost fixed monthly payments and an initial rental fee, which usually is about three months’ worth of monthly payments.  

You hand the van or pick-up truck back to the finance provider at the end of the contract, leaving you free to lease a newer vehicle.

Leasing has grown considerably in popularity in the UK over the last few years, especially with sole traders, limited companies, and partnerships. It provides a cheaper solution to being able to drive a new or nearly-new van.

One of the main benefits of van leasing is that you can drive the latest van makes and models with the newest in-car and safety technology, the latest practical features, and the most efficient engines.

Benefits of Van Leasing

• Fixed low-cost monthly payments to help you to plan your budget accordingly

• Manufacturer’s warranty, breakdown cover and road-tax are included

• Free delivery to any UK mainland address

• You can take out an optional maintenance contract to help cover the costs of repairs and servicing

• No depreciation costs to worry about

• At the end of the contract, you simply hand the van back, leaving you free to lease a newer model

• Drive a new van every 2, 3 or 4 years

Should I lease a van?

 Are you considering whether to lease a small van, a pick-up or a large van?  If so, Fleet UK has several solutions to suit everyone, from self-employed tradespeople to large businesses requiring a fleet of commercial vehicles. Or perhaps you’re a personal customer looking for an affordable van for your personal use – we’ve got you covered as well.

Key considerations of vehicle leasing

  • The fixed monthly amount is based on the annual mileage you choose.  If you exceed the agreed mileage, you will have to pay an 'excess mileage charge'
  • You must return the van in good condition as per BVRLA 'fair wear and tear' guidelines
  • Vehicles must be insured with fully comprehensive insurance
  • The cost to terminate the lease contract could be expensive
  • You won't own the vehicle at the end of the contract

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What is business van leasing?

If you’re a sole trader, a limited company, partnership or LLP, you might be eligible to apply for a business van leasing agreement.

Business van leasing, sometimes known as business contract hire, is a method of van finance where you pay a simple fixed monthly payment for the use of a vehicle over an agreed period, typically two to four years. 

Quite simply, a business van lease is one of the most affordable ways for you and your employees to drive a brand new van, helping you put your company’s money to the best use.

What are the benefits of business van leasing?

Cash Flow

The cost of a new van equates to a huge capital outlay for a business. There is no enormous initial cost with leasing, and the fixed monthly payments help companies plan their budget.

Optional maintenance contracts

If you choose to take out a maintenance package with your lease, there will likely be no unexpected servicing costs.

No depreciation worries

If you choose a contract hire agreement for your van, you return the vehicle at the end of your lease and avoid the hassle of selling the vehicle yourself.   You also do not need to worry about how much value the vehicle has depreciated.

VAT Registered

The cost of your business lease rental will be subject to VAT. In some cases you can claim up to 100% of the VAT back, providing you can prove that all of your journeys are business related.  If the vehicle is used for a mixture of personal and business use, you can claim up to 50% VAT back.

Corporation Tax

You could save on corporation tax depending on the emissions of your business vehicle. In some circumstances, part or the full amount of your lease payments can be reclaimed against your taxable profits.

Is a business van lease tax deductible?

One of the tax advantages to leasing a van can include claiming up to 100% VAT back on the monthly payments if you’re a VAT-registered business, providing that the van is used for business use only.  If there is any form of personal use of the vehicle, you can still claim up to 50% VAT.

You can also claim the cost of van rental as an expense when filing your tax return. Your rental payments can be a tax-deductible expense.

View our “Tax Advantages of Business Leasing” guide for more information.

 

How much is it to lease a van per month?

It depends on which type of van you want to lease.  Some of our smaller van deals start just above £100 (exc. VAT) per month, so you can be sure to get a fantastic deal.

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What documents do I need for a business lease?

Each finance provider has its own requirements for business lease applications. You will need to have been trading for two years and filed at least one set of accounts showing a positive worth.

If you are a new start-up company and have not yet filed any accounts, some funders such as (but not limited to) Audi, VW, Skoda, SEAT, and Mercedes-Benz will still accept an application with a supporting Directors personal guarantee.

If your company has filed only one set of accounts, we recommend supplying the latest management accounts and three months worth of bank statements to support your finance application.

 

Is it better to buy or lease a van for my business?

Ultimately, it depends on what you want from the van. Leasing tends to be a more cost-effective solution for a new vehicle, as you are not paying out a large upfront amount of capital.  Plus, you do not have to worry about the cost of depreciation.  When you purchase outright a new van, losing as much as 60% of its value in the first three years is common.

Leasing is generally accepted to be the most tax-efficient way of running your company van(s). However, this might not be the case for every business, and you should speak to an accountant who can advise you of the benefits of a business lease based on your specific circumstances.

Can I put a company logo on a leased van?

Yes, but you have to ensure any logos or signage is removed before the van is returned to the finance provider at the end of the lease contract period.

What is personal van leasing?

Personal van leasing is when a private individual (instead of a business or a company) takes out a lease agreement on a new or nearly-new commercial van or pick-up truck. 

It provides an alternative funding solution for sole traders, partnerships and limited companies who have been trading for less than a year or who have previously been denied vehicle finance.

The individual taking out the lease agreement is approved for finance rather than the company or business with a personal lease agreement.

 

Which type of personal van contracts are available?

Fleet UK offers the following range of personal leasing finance options:

Click on any of the following for more information on the finance type and how it can help you obtain the van you want.

  • Personal Contract Hire
  • Personal Contract Purchase (PCP)
  • Hire Purchase
  • Lease Purchase
  • Finance Leasing

 

Why choose Fleet UK for van leasing? 

Fleet UK has been trading for over 20 years, and we have built our reputation on providing first-class customer service to businesses and private individuals. 

We can supply any model or make and offer various finance options to help you get behind the wheel of the car or van you want. We have provided every type of vehicle from Ferraris to Fiats and from pick-up trucks to Porsches.

Although we count many sports stars, celebrities and Olympians amongst our clients, we treat every one of our customers the same. Transparency, trust and fairness are three values that we treat with the utmost importance and is a key reason why all of our Google reviews are five stars.

What else does Fleet UK offer?

In addition to our vehicle leasing, our other services include:

  • Part-exchange

If you need any further assistance, please do not hesitate to call one of our friendly, experienced and professional account managers on 02392 245570.

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