What are Your Van Leasing Options?

By Libby Foster
What are Your Van Leasing Options?
Van leasing is a long-term rental agreement that allows you to use a van or pick-up truck exclusively for a set period. With MWVC, our leasing contracts have four terms, 24, 38, 48 and 60 months. Depending on your budget and preference will determine which leasing contract is the best option for you. 

There are several benefits to leasing a van from low initial rental to help avoid huge up-front costs to being able to enjoy a brand new van. But what are the different van leasing options available? 

What is Business Van Leasing? 

You may be able to apply for a business van leasing agreement if you are a limited company, partnership, sole trader, or LLP. A business van leasing agreement has numerous tax advantages. All business lease prices are exclusive of VAT.

If you are on the lookout for a new business van, currently in stock and on the list of our special offers is the Peugeot Expert Standard 1400 2.0 Bluehdi 145 Professional Premium Van. With a starting price of £238.99 per month (ex. VAT)*. 

Business Contract Hire with Van Leasing

Our most popular van leasing contract type is Business Contract Hire (BCH), which is suitable for sole traders, partnerships, and limited companies. With BCH, you pay for the use of the vehicle throughout the contract and then return it to the finance company at the end with no further obligations. Monthly rentals are determined by the vehicle's value, the length of the contract, and the agreed-upon mileage. Maintenance, servicing, and tyre packages can also be included in monthly rentals under a BCH agreement.

What is a Business Finance Lease?

When most people talk about leasing, they are most likely referring to Contract Hire rather than Finance Lease. This is where you lease a vehicle for a set number of years and then hand it back and walk away. And for many people, this is fine if they can predict their mileage and keep the van in good condition throughout the term. However, this is not the case for everyone. So, if you want to enjoy the benefits of leasing but wouldn't want to be bound by the mileage and condition restrictions that come with a Contract Hire deal, Finance Lease is the funding option for you. 

A Finance Lease agreement, like any other lease, is essentially a way of using a vehicle for a set period, usually between two and five years, with a set mileage allowance. However, unlike a contract hire agreement in which you return the vehicle at the end of the agreement, with a finance lease, you will pay the full amount for the vehicle and then sell it to a third party. At this point, you may be wondering how this differs from Hire Purchase and what the point is. It's all about three things: potential tax savings, large vehicle discounts, and flexibility.

What are the Benefits of Business Finance Leasing?

Essentially, a business finance leasing agreement provides you with access to a business van at a low leasing cost that can be deducted from your taxable profits. Van repayments are deductible as a business expense and are fully tax-deductible. VAT-registered businesses can reclaim any VAT included in rental payments. Furthermore, maintenance costs can be included in the repayment plan, removing the financial burden from you in the event of unexpected maintenance required on the van. Learn more about our maintenance package here. 

If you are searching for the perfect small van, currently in stock and on the list of our special offers is the Citroen Berlingo Van M 1.5 Bluehdi 1000kg Enterprise Pro 100ps [6 Speed], starting from as little as £188.99 per month (ex. VAT)*. 

How Can MWVC Help 

Here at MWVC, we have plenty of van leasing deals on offer to suit everyone's needs when it comes to choosing the right deal for them. Whether you are looking for a personal deal or a commercial vehicle to lease, our expert sales team can advise you on the best deal for you. Still, wondering if van leasing is the right option for you? Give us a call on 0116 490 6852, and a member of our team will be happy to assist. 

Follow us on Instagram to stay up to date with all our latest offers.  

*All pricing is correct at the time of publishing.