How Does Van Leasing Work? - Vanzone
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How Does Van Leasing Work?

If you want a brand-new van but you want to keep some money in the bank whilst driving one, then van leasing is for you. 
It can also provide some great tax benefits, but more about that later. 

What is Van Leasing? 

It’s a lot like your phone contract, but for your van. You pay monthly and drive your new van until the end of your lease term. 
There are plenty of options available here. 

Why Lease a Van?

When talking about van leasing, you should ask a few questions, because there are a few different types, each with its own benefits.

The most popular type of van leasing by far is a Finance Lease.

Here are the benefits:

ZERO Damage Charge

You don’t have to pay for bumps or scratches at the end of your lease because the van will be yours to sell on.

Fixed Monthly Payments

You work out how much you can afford to pay every month and the price doesn’t change.

You’ll be paying the same every month, until the end of your lease term.

No Mileage Restrictions

Drive as far as you want, there are no constraints on your mileage.

100% Tax Deductible

You can offset the lease payments for a commercial vehicle against your pre-tax profits.

Choose How Long You Want To Pay

You can have a finance lease for as little as 2 years or as long as 5 years.

You’ve Got Options

Typically, you pay a small sum upfront and a balloon payment at the end, whatever is left to pay is divided by the number of months you want your lease to last.

Within reason, you can pay what you want per month by changing your upfront payment and your end payment to suit.

A finance lease is the most popular method of van leasing, the one drawback is that you have to sell your van at the end of the lease term. But we can offer some helpful insider knowledge on this.

Leasing a New Van – Step by Step

Choose The Right Van For You

Think about what size van you need, what kind of driving you are doing most often, and important features that you want to be included.

If you need some help on this, we have experts in the field who can assist you. Just call 02922 678 010.

If you already know what you want, call the same number, and we can guarantee you the best deal on your new van.

What Kind Of Lease Do You Want?

Now choose which type of lease you’d like, for how long you want it, and a few other details (depending on which lease you choose).

Give Us the Details

Give us a few details and we’ll pass these on to our partner companies to get finance for you. At this point a credit check will be carried out, as long as you’re accepted, we’ll take your deposit to lock in your new van.

Receive Your Van

Once everything is signed, we’ll have your van delivered straight to your door.

Enjoy Driving Your Brand-New Van

Enjoying driving your van until the end of your lease.

Keep It Or Sell It

The type of lease you choose will help determine what you do with your van when your lease ends.

Which Lease Type?


We’ve already outlined a finance lease at the start of this blog. That gives us a great starting point to compare other types of van leasing.

Contract Hire

Contract hire is very similar to a Finance Lease, except, at the end of your lease term, you have to return your van to whichever company funded your vehicle.

This means there may be additional costs incurred when returning your vehicle. These charges will relate to things like the condition of your van and the mileage travelled.


These next two options are not strictly leasing, as you will own the van at the end, but they’re worth mentioning.

These are finance options. You’ll pay for your van in pretty much the same way as a lease.

Hire Purchase

If you want to own your vehicle at the end of your van leasing term, hire purchasing your new van may be the way to go.

This will usually mean that you put the VAT down as an initial deposit and the remaining cost will be paid as fixed monthly repayments.

Repayments typically range between 24 and 60 months.

Lease Purchase

Lease purchase is the same as a hire purchase but with a lump-sum “balloon” payment at the end, this decreases your monthly payments.

Making Things Crystal Clear

The cost of your monthly payment depends on a few things:

How Much Your Van Costs

This is the first thing to consider. And it’s why you want to make sure you’re getting the best deal possible on your new van.

We buy vans in bulk, which means we get them cheaper (especially when compared to main dealerships) and we pass this saving on to you. This is why we can guarantee you’re getting one of the best deals in the UK when you come to Vanzone for new van leasing.

Your Finance Deal

We’ll work with a number of finance companies to lock in the best finance deals in the market. We offer extremely competitive rates, and once secured, your interest rate will not go up.

Meaning, once we have secured you a fantastic deal, your monthly payment is not going up.

Deposits And Balloon Payments

In general, the more money you put down as an initial deposit, the lower your monthly payments.

And the higher your final balloon payment, the lower your monthly payments.

(A balloon payment is a final lump-sum payment of any outstanding balance).

How Long Your Term Is

Depending on how long you choose to lease your van will also affect your monthly payments. 

How Mileage Affects Things

Your Mileage Has An Affect When Leasing

If you take out a van lease, then we will need to know how many miles you plan to do.

This allows us to accurately calculate your final payment.

Insider Tip: Telling us a lower mileage doesn’t help you out here.

For Contract Hire – If you saying you’re going to do 10,000 miles a year for example, but you end up doing more than that, you’ll be charged a fee for every mile.

For Finance Lease – You won’t be charged for mileage but doing more mileage will make your van less valuable, meaning, when you sell it at the end of your term, if you’ve gone over your mileage, you may not get as much for the van when you sell it as you must pay off at the end.

But Mileage Will Not Affect Finance

If you finance a vehicle, i.e. Hire Purchase or Lease Purchase, then you don’t need to worry about your mileage whatsoever – you own the van.

If You Want Some More Info…

So that’s leasing (and finance) in a nutshell. If you want to know anything else, or to have someone talk you through the information here in a bit more detail, give us a call on 02922 678 010.

If You’re Ready To Lease Or Finance…

If you know what you want, give us a call on 02922 678 010, or fill out an enquiry form here.

We can guarantee that we’ll get you the best deal in the UK for your new van. You won’t regret going with Vanzone for your next lease or finance deal. 

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