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Automotive

How Does Van Leasing Work- A Step By Step Guide

Over the last few years, the trend of van leasing has grown popular as it provides an alternative and most cost-efficient solution to buying a new van. Van leasing comes with a variety of benefits that you will learn in this article. Before that, let’s know what van leasing is and how it works.

What is Van Leasing?

Van leasing is the long-term renting of a van for a specified period. The years of leasing is between 2 to 5 years, depending on the leasing company. At the start of leasing, the customer will require to pay an initial payment, followed by a series of monthly payments until the end of the agreement. Once the leasing contract ends, the customer is required to return the van to the van leasing company without any further obligations. At this time, the customer is free to move forward to leasing or buying another vehicle of their choice. By leasing a van, a customer does not need to worry about the depreciation value of the van, as this responsibility lies with the van leasing companies.

How to Lease a Van- Step by Step

Here are the steps involved in the process of leasing a van.

Choose Your Van

The first step of van leasing is to choose the van you want for your personal or business use. Several leasing companies offer a wide variety of the latest models to make your business perform and look good. Decide the make and model you prefer and find its availability in at least 2 or 3 leasing companies.

Choose The Lease Package

Leasing companies offer several ease packages, depending on how long you would like to lease and how many miles you will drive. The leasing period is typically 2, 3 or 5 years.

Provide The Company With Your Financial Details

At this step, you need to give your detailed financial information to the company. This information enables the company to make sure whether you are able to afford the specified monthly payments or not. At this point, you can also talk about how much you can afford as an initial payment so the company can arrange a possible lease for you.

Van Delivery

Once after all the paperwork and initial payments, the van you selected will be delivered directly from the leasing company to your home. Some leasing companies require the customers to pick the van from the dealer.

Enjoy The Van For The Length Of The Contract

Depending on the contract you signed, you can drive the van for the pre-agreed length. During this length of the lease contract, you will require to pay the agreed monthly fee.

Return The Van At The End Of The Contract

Every van leasing works in the same way as renting a property. You have to give the van back to the company at the end of the lease. Some  companies provide you with a choice to lease the same van for your next lease if you want to drive the same van in the future. Otherwise, you can upgrade to the latest model and the process all over again. Van contract purchase is another available option, where you can own the van at the end of your lease.

Personal Contract Hire Vs Business Contract Hire

Business Contract Hire BCH is a van leasing contract type for sole traders, limited companies and partnerships. Here, you pay for using the van throughout the contract and return it to the company at the end of the contract. The monthly payments are based on the value of the vehicle, length of lease and agreed on mileage. On this agreement, you can also include maintenance, tyre package and services into your monthly payments. Personal Contract Hire PCH, on the other hand, is a long-term lease agreement where you pay for the use of the vehicle. After the end of the contract, you return the van to the company. These both are the same, but in PCH, you will not be able to recover any VAT as an individual. There are many advantages of BCH, as the initial payments tend to be the lowest and most affordable with no risk of you being stuck with the depreciated asset at the end of the lease.

Final words

Van leasing comes with a variety of benefits, such as low initial rentals, fixed monthly payments, flexible duration and mileage, and most importantly, no depreciation risks at the end of the contract. The steps involved in the process of van leasing are easy, and you can enjoy a new can every few years. Now that you know about the process in detail, you can opt for your first van lease and enjoy your favourite van for up to 5 years.

AaronSwift

Aaron Swift is an intelligent and analytical worker. His extensive experience in the field of Stucco Mason and plastering has made him an expert in his field. He also has excellent abilities to read and deduce architect drawings and blueprints. Currently, he works in Ride Leasing, UK.

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