In a nutshell, leasing a van, pickup truck or other light commercial vehicle (LCV) on business contract hire (BCH) means that you’ll get the keys to a brand new model that you can drive for an agreed number of months/years, covering a capped number of miles, in return for a non-refundable deposit or ‘initial rental’ followed by fixed monthly payments that make transportation much easier to budget for compared to running a potentially unreliable, less safe and less efficient used van that will also lose its value through depreciation.
The initial rental (non-refundable deposit) can often be varied to suit each organisation’s cash-flow, deciding to pay a higher down-payment unsurprisingly translating into lower monthly payments. Other variables such as annual mileage, lease contract length and any options specified for a vehicle such as roof-racks, tow-bars, ply-lining, sign-writing and branding, side-steps and winches will also determine the final price. Our leasing advisors will be able to guide you through the financial application process, and ‘in stock’ vans, pickups and other commercial vehicles are the ones to go for if time is of the essence.
Arranging fully comprehensive van insurance is a leasing customer’s responsibility, but another great benefit is that, in addition to a manufacturer’s warranty meaning most problems and faults are fixed free of charge and a courtesy van provided, most commercial vehicle lease deals include:
- free nationwide delivery throughout the UK, except Northern Ireland and the isles of Scotland, which may cost a little more
- road tax, breakdown, roadside assistance and recovery
Van leasing will suit a business, club, charity or other organisation or association down to a tee if peace of mind is derived from driving a brand new vehicle every few years or so - one that is reliable, safe, fuel-efficient and comes with plenty of the latest safety and technology features.
Just like cars, depreciation hits vans, pickup trucks and other commercial vehicles as soon as they make their first journey, and it makes little financial sense for many businesses to fork out a lump sum for one, whether in cash or with a loan.
Leasing a van removes the aggro of trying to sell or dispose of it in some other way for a decent price when the time comes to replace the vehicle, and ‘de-hire’ charges for returning vans and pickup trucks at the end of their lease contracts are typically much more lenient than for personal cars. This is because the companies involved appreciate that vans, crew buses and the like are used as workhorses and subject to expected wear and tear by everyone and everything from colleagues, equipment and materials to children and even animals. A maintenance package can often be added to the lease plan, covering servicing, tyres and consumables like batteries and lightbulbs.
Just bear in mind that a lease van will never be owned as an asset, ‘early settlement’ (cancellation, basically) mid-contract will mean paying some of the remaining monthly rentals, and fees apply for exceeding the agreed mileage and picking up more sizeable dents, scuffs, interior damage and stuff like that - but leasing a van, pickup truck or other commercial vehicle is otherwise a no-brainer. Make a brew, get yourself comfortable and have a no-obligation chat with our friendly contract hire team who will happily answer any questions you may have.