Van leasing is currently helping many businesses to stay afloat during these difficult times. Many businesses have been forced to look carefully at their cash flow and capital expenditure. Commercial vehicle leasing provides businesses with an effective way to ensure that they have the transport they need with fixed, known monthly repayments.

Van leasing and contract hire have become increasingly popular as businesses recognize the benefits of leasing over outright purchase. These advantages include:

  • Fixed, known monthly payments enabling businesses to accurately forecast their finances;
  • Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
  • Maintenance and servicing can be included in the lease price which can save a lot of headaches;
  • Leasing is a great way to lessen the impact of depreciation;
  • The leasing company can often provide commercial vehicle insurance at very competitive rates;
  • No problems disposing of vehicles at the end of the lease period;
  • There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.

Although van leasing is generally advantageous to businesses there are some additional considerations that should be borne in mind. One important thing that you may need to do is to estimate your anticipated maximum mileage over the course of a year. Some contracts impose penalties if the anticipated mileage is exceeded but there are contracts that provided unlimited mileage.

Another key consideration for business is exactly what is included in the contract maintenance agreement, if there is one. Some contracts provide free replacement windscreens and tyres, but others may not.

When researching van leasing options always gather a number of quotations for comparison and be certain to read the specifications and details carefully. Be sure that you are comparing the exact same models with all of the same features.

Like company car leasing, van leasing is increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.