Leasing a van can sound like a confusing process at first, but that is mostly because many people have never looked into how it works. Leasing as a whole is an invaluable way to get access to vehicles and equipment that you normally would not be able to afford, and a van is no exception – and it is easy to underestimate how useful a lease van can be.
If you are interested in leasing a van of your own or have at least considered it recently, then it helps to know the finer points about how leases work and what you can expect from them. Many would-be van leasers end up obsessing over small details or worrying about how the process works, but once you know the basics, it is an easy way to get hold of whatever vehicle you need.
How Van Leasing Works
In simple terms, a typical van lease involves you paying a monthly fee to get ownership of a van. This is effectively a longer-period rental, focused more on multiple-year contracts rather than just renting the vehicle for a few weeks at a time.
As a whole, a van lease allows you to get hold of a particular van that you would not ordinarily be able to afford. Since leasing is much cheaper and more practical than an outright purchase most of the time, many companies (as well as small businesses or even individuals) turn to leasing to get hold of vans in the long term.
The actual leasing process is usually very straightforward and mostly just focuses on agreeing to a specific lease contract. These decide the terms of the lease, from the payment plan to the amount of time that the vehicle is being leased for.
The details of each leasing contract can be the difference between every single lease that you make with a company, but the general idea of the contract is always the same. They specify things like the lease end date, the amount you need to pay per month, the initial lease fees, and any other details that apply to your lease vehicle as a whole.
For example, some might provide mileage limits or specify a cost to terminate the contract early. Others may even include limitations on how you can use the vehicle, or terms relating to the condition that you need to return the vehicle in. Failure to meet these terms can mean additional costs at the end of the lease.
Rather than one large purchase cost, leasing allows the cost to be spread out across multiple payments, making it easier for small businesses or individuals to afford more expensive vans. The actual cost depends on how each leasing company chooses to price its vehicles.
Either way, leasing is generally an easier and less financially-draining way to get access to important vehicles that can really make a difference. The costs you pay can often be affected by things like mileage and vehicle condition, but each contract (and leasing company) is different.
The Benefits of Leasing
Leasing a vehicle can have a range of core benefits that make it a worthwhile option, no matter what kind of van you are looking for. As one of the best ways to make expensive vehicles more accessible, leasing has become standard practice in a huge range of industries, as well as among solo contractors.
While leasing can sometimes cost more than an all-out purchase in total, the ability to pay monthly means that expensive vehicles become a lot easier to get hold of. This allows new businesses and contractors to start working without having to save up for their own vehicles ahead of time, something that can take years if planned poorly.
These reduced costs mean that any kind of lease vehicle becomes a lot more practical. Even well-established companies often use leasing options as a way of getting extra vehicles for a specific amount of time since they do not have to commit to a full purchase.
Reducing the costs of your new vehicles through leasing also means that you have more money available for other important projects. A brand new business may be straining its budget as-is, and getting a vehicle in a cheaper way can make a big difference to the rest of its startup process.
Leasing is a much less stressful option than a purchase, mostly due to the level of commitment involved. By leasing, you effectively get a vehicle for less than you would have normally paid for it on a monthly basis while also removing the need to actually manage issues like disposal or depreciation.
While you still need to take good care of a lease vehicle, most of this work is purely about the van’s condition, rather than any background paperwork. A lot of leases also include things like road tax and basic repairs or servicing, meaning that you can effectively remove most of the behind-the-scenes responsibilities.
This does not mean that leases are stress-free ways to get a new van, but they can still be a very practical option for people who do not want to deal with the common issues behind buying a new vehicle directly. This becomes especially true for contractors or small businesses that are already bogged down in work.
Being able to take on another vehicle for only a few years makes a huge difference to many companies. A smaller business may not want to purchase a long-term vehicle, and some larger companies may need a fleet of transport vehicles for only a year or two. In either case, getting a temporary lease vehicle is a far more practical choice.
Even disregarding the costs, purchasing another vehicle means that a business or company has an extra asset to manage, and that means that they need to take good care of it to see the best benefits. It also means that the vehicle essentially becomes irrelevant if it is no longer needed, forcing the business to sell or scrap it.
By leasing, you only get the vehicle for a set amount of time. This allows the leasee to ensure that they have a van for a few years without the commitment of a purchase, meaning that they can hand it back at the end of the lease rather than having to deal with the now-unnecessary van themselves.
One of the major benefits of a lease is that you are not stuck with the same van for the foreseeable future. While each lease is for a specific vehicle, there is nothing stopping a small business from leasing a basic van for a year or two, then upgrading to something better as part of subsequent leases.
Thanks to this, a lot of smaller companies are able to get started and gradually improve their vehicle options, even if they never make a permanent purchase. When it comes to leasing, the flexibility offered by a lease’s temporary nature means that choosing the right van becomes far less of an immediate worry.
Most lease vans also come with their own upgrades, modifications, or configurations. These might be simple things like roof racks or extra seating, but they can make a difference, and it is not hard to lease a van with a particular set of modifications that will really benefit you or your business.
When Should You Lease Vans?
Leasing can be a powerful tool, but it is also something that many people do not fully understand. It is easy to forget that leasing is an option, and even if you remember to consider it, it can be hard to know when you should try leasing.
While the direct benefits of leasing might be completely clear, there are still some situations where leasing can make a huge difference to the reason behind why you are getting a new van.
Starting a Business
Starting up a small business is not easy, and a lease van can be a great way to get hold of a used vehicle without having to commit a lot of your initial budget to a purchase. This also provides a great way to test the waters of how you will operate – you are not going to be stuck with a bulky van if you end up changing how your business works.
Leasing a van can be especially important for service and repair contractors since they provide a useful place to store tools, spare parts, or even entire appliances. Having an easy way to move a lot of supplies around at once, even just temporarily, makes a huge difference.
Beyond that, vans can be great for nearly any kind of business. Whether they are being used for transporting people, hauling goods, or moving equipment, a decent lease can form the foundation of a new business’ operations for a few years.
Building a Fleet
Any company that plans to build a fleet of vehicles can benefit from leased vans. Not only can they lease multiple vehicles at once while still remaining within their monthly budget (at least compared to purchasing the vans directly), but they can also choose as many individual van options as needed.
This means that there is a lot of flexibility behind the way they choose to lease. For example, they may want their fleet to consist of just transport vans, or perhaps they will want a mixture of equipment-transport vans and people-carrier vans. This allows a company to mix different options without having to make many separate purchases.
The temporary nature of leases means that a company is not committing to buying a range of vehicles that they may later want to replace or upgrade from. This is perfect for any temporary fleet, such as one designed to handle a specific project that will only take a year or two to complete.
Cutting Down Costs
The most obvious reason to lease is due to the lower costs, which can be a great reason to lease a van that you would ordinarily buy anyway. While leasing is still going to be expensive in the long term, it can be much more affordable due to the monthly payments, allowing even a one-person business to operate across a wider distance.
Reducing costs means that a company or contractor can save money for a range of other purposes, allowing them to pool more money into important services or purchases that might be important to better establishing themselves or for operating more effectively.
Of course, the exact costs you should expect to pay will depend on the kind of van you end up choosing, as well as any additions or modifications they come with. Each lease is different, so it is still important to budget well and use your own judgment when choosing lease vans.
For Temporary Purposes
Leasing is almost always better than buying when it comes to temporary projects. If you are only going to need a van for a year, then you might just want to lease one and save yourself the hassle of having to deal with a purchased vehicle further down the line.
While there can be some situations where a purchase is still going to benefit your business – like a general-purpose van purchase that you can use in other ways – you are not always going to want another permanent vehicle. A temporary lease means that you are only getting the van for a set period, meaning that you do not have to worry about it in the long term.
Where To Lease
Wherever you look for your van leasing needs, it is important to remember that leases are still quite varied. Different leasing companies will approach lease pricing differently, and they can obviously only lease you vehicles that they actually have – you may have to hunt around for particular vehicles if you already know what you want.
However, it is always a good idea to take some time to explore your options. There are countless van models out there, many of which have additional modification packages or upgrades that make them better suited to specific roles. It does not take long to find something that fits with your needs, even if it means looking at a range of vehicles you normally would not consider.