The top 5 reasons to lease a van
Why consider a van leasing deal?
- Improve the business cash flow
When you lease a van you have an agreed fixed monthly charge which can include servicing and maintenance of any work required to keep the vehicle road worthy. With a fixed monthly payment for the duration of the lease contract, your business will be able to accurately budget the costs of running a single van or even fleet of vans with no surprises from rising interest rates or large garage bills.
- Remove the vehicles depreciation risk
When you buy a new van it’s a fact that as soon as it leaves the showroom it will depreciate in value. It will depend upon the make and model of the van as to how fast it will depreciate, but the simple fact remains that each year the van will be worth less. When you lease a vehicle you take away the worry of having to sell the van, at the end of the lease contract you simply hand it back over to the company. With an unsteady auto industry and falling prices for second hand vehicles why worry how much your van is going to be worth tomorrow.
- Lease payments can be offset against tax
When you lease a van solely for business purposes within the UK your company can claim up to 100% of any vat spent on your monthly lease payments. If the van has a dual purpose on the other hand and is used for both business and personal use, up to 50% of the vat costs of leasing the van can still be claimed back. If the van has a maintenance package as part of the van leasing agreement 100% of the vat can also be claimed back.
- Drive a better quality vehicle
It’s a fact leasing enables companies to run a higher standard of vehicle than they may otherwise have been able to afford had the vehicle been purchased. There is no large down payment for driving the van away from the showroom just a fixed monthly instalment. Lease payments are always less than monthly payments for purchasing a van because you are not actually paying to buy the vehicle, just the amount it will depreciate in value over the term you have the contract for. Leasing enables companies to keep up to date with technology and change their van every 2-3 years, enabling you to drive a vehicle that is more environmentally friendly with a lower fuel consumption.
- No more repair bills
When you lease a van you can take on a maintenance contract for the duration of the lease term which will cover any repairs that the vehicle requires. With garages charging labour costs of £50 per hour and upwards it can work out quite costly should your van require any repairs not covered by the warranty.