How Much Do Van Lease Deals Actually Cost and Why are they so Popular?

February 15th, 2022

If you’ve never taken out a vehicle lease before, you may be wondering how much you can expect to pay. We’ve written this handy guide so you can see how much van lease deals actually cost, and why they’re so popular.

Van lease cost – what you can expect

We’d love to give you a straight answer on how much you can expect to pay for a small van lease, or a lease on a pick-up. However, monthly van lease cost is calculated dependent on a number of things, like annual mileage and initial deposit. Meaning each long-term van lease is different, but tailored to each individual.

Vehicle finance is worked out based on the finance company’s projection of the residual value of the vehicle. So, annual mileage, and any other factor that will depreciate the value of the van, will be considered in the van lease cost.

When you’re looking at van lease deals you will generally see a monthly figure. This will be based on a standard deposit and lease length. For example: 3+35 denotes that the figure would be based on 3x the monthly rental as an Initial Payment. Followed by 35 of the monthly payments, comprising a full 3-year (36 month) agreement. By understanding how the prices you see are worked out, you will be able to decide what option best suits you.

How to find cheap van lease deals

Now you know how the van offers you see are worked out; you can work out how to find cheaper van lease deals.

1 – The first thing you should decide is which finance option best suits you. Finance Lease, Contract Hire, and Hire Purchase all offer different benefits. So, when you’re looking for the best van lease deals, ensure you’re clear on the details of the financing option. Such as, VAT spread/paid upfront, excess mileage or damage charges, and end of lease options. Choosing the right option for your circumstance will save you money.

2 – What affects the van lease cost? A larger deposit and a long-term lease are the biggest factors in reducing your monthly payments. Driving a lot of miles will reduce your vehicle’s value at the end of the lease, and therefore make your van lease cost more expensive.

3 – By choosing a well-established broker or van leasing company, you will benefit from their experience. They will have long-held relationships with manufacturers and dealers, and will therefore have access to the best discounts.

Benefits of van leasing

Many companies are now seeing the benefits of cheap van lease deals as a cost-efficient alternative to buying.

Looking into leasing deals can be a great option for sole traders, start-up companies, growing businesses, and those looking to build up a fleet. As opposed to buying, leasing deals allow you to spread the cost of the new vehicle across an agreed term, rather than forking out a large chunk of capital upfront.

The financial benefits of spreading the vehicle costs across the term of leasing deals are; manageable monthly payments set within your budget and full visibility of future payments allowing for full control of your business outgoings. In addition, if your business is VAT registered, you will be able to reclaim the VAT paid on the lease vehicle.

If you’re looking at cheap van lease deals, one area that differs from buying is ownership. Whether or not you can own the lease van at the end of the contracted term, depends on the finance agreement you choose. So, look into the detail of each financing option if you are interested in ownership.

Now you have all the information – check out our specials page or call 01179625314 to talk to one of our van lease specialists.