Pros & Cons of Van Leasing

Van Monster
Van Monster

When it comes to your business and you are looking for the best way to acquire vans for your business, have you considered van leasing? You could purchase a van or a fleet of vans either outright or on a finance agreement suitable for business use. However, there are a variety of pros and cons to van leasing that need to be consider when trying to decide what is the best way of either purchasing or leasing vans for business.

Pros

Here is a list of the pros for van leasing:

Low monthly costs and no deposit
Unlike the majority of finance deals, leasing monthly payments do not fluctuate due to rises in inflation. Once the amount has been agreed at the beginning of the agreement, it remains the same throughout. This makes it extremely easy to budget.

With leasing, you can either pay a low deposit or no deposit at all. Depending on what you choose, this will alter your monthly costs, however you will be able to work that into your budget easily enough.

Flexible upgrades available
Leasing contracts can last from 2-5 years and you may wish to upgrade your vans earlier than you first though. Depending on what you originally agreed at the beginning, you could upgrade your vans and agreement earlier if you wanted new vans.

No depreciation
With leasing, the vans are usually handed back to the leasing company instead of you owning them. This means that you do not have to worry about selling them at the end and therefore do not need to be concerned with how much value the vans have lost.

Van Leasing Pros and Cons
Van Leasing Pros and Cons

Cons

There are more pros to come in the infographic, however there are some cons that need to be discussed.

It will cost to terminate early
While upgrading early can be an advantage, if you are looking to cancel your agreement early, it is likely to cost you more. This is not necessarily something that can be foreseen, but reasons can develop that mean you need to terminate your agreement early.

Miles first

You will have to estimate how many miles your vans will be doing yearly at the beginning of the agreement. On a van leasing agreement, you have to state how many miles you will be doing in your vans for each year of the agreement. If you go over the agreed limit of miles, then it will cost you more per mile.

There are more pros than cons for van leasing and you should very much consider it is you are interested in getting a single van or a fleet of vans. Getting a van on business contract hire is very easy for both van and car leasing agreements.