The most frequent question that I and my colleagues are asked year in and year out is how to make the choice between renting and leasing a van. What are the major benefits to taking out a lease, as opposed to a simple rental agreement?
The answer is not complicated really. When you take out a lease on a van you can choose which one to have from the wide range of makes and models that are familiar to you. You can choose what colour it will be, what options you want and what size and specification you require. You are spreading your monthly payments as a customer, over a set term – as a result, your monthly payments will be considerably lower than a rental agreement. It is becuase the finance company knows exactly how much money it will be earning from the customer because of the customer’s committment to the deal.
Because we have such a high turnover of vans, we can get the best possible prices, and pass them straight to the customer. This culminates in lower start up cost, helping to improve cash flow for the customer. Our customer also has the option to continue owning or sell the van at the finish of the van contract hire deal.
As an added bonus, you can sign write your company logo onto the van, and add extras like roof racking and interior racks.
Alternatively, with rental you can pay your rental charge each month and have nothing to show for it at the end of the period. For me, it is the worst of all of the options on show, and has the least value for any business.
To find out more, see our ‘financed explained’ section on our website which covers topics such as van leasing UK and small van leasing.
