Looking for a brand new van? Have you considered leasing? If not, it’s probably because you don’t know how it works and all the benefits it brings. Our step-by- step guide will explain exactly how leasing works, from finance options right through to delivery of your dream van.
Looking for a brand new van? Have you considered leasing? If not, it's probably because
Why Choose Swiss Vans for Your New
Leasing a van, as compared to buying one, is an appealing option for many reasons. For one, leasing a van means that you don’t have to go through the usual hassle and trouble of all the purchasing paperwork. Plus, you don’t have to commit to a costly choice. You can drive the van around for the lease period, get your work done, and then make up your mind later on about whether you want to buy it or not.
Just as there are popular dealerships and companies in business for car selling and buying, there are also companies that cater specifically to customers looking for a lease. Swiss Vans, in particular, is a Europe-based company that offers van leasing services. It’s quite a popular name and it has served thousands of customers throughout the years of its existence.
If you are looking to lease a van for yourself but are not sure whether to go with Swiss Vans or not, don’t worry. Let’s take a look at what this company has to offer and why you should choose it for your van leasing needs whenever they arise.
What exactly is Swiss Vans?
We did just describe what Swiss Vans is in the heading above, but we have to elaborate a little on that to make things clear.
Swiss Vans is not only just a van leasing service. Rather, it is a company where you can lease or buy vans from a variety of different brands and manufacturers. It also offers modifications and upgrades i.e., that you can apply to the vans you’re renting or buying.
According to the company’s official website, it has more than 20 years of experience in the industry, and it supplies throughout the United Kingdom.
Why should you choose Swiss Vans for your next van lease?
Now let’s take a look at some of the reasons why you should choose this company the next time you want to lease a van.
1. Variety of offered vans
One of the main things about this company that makes it ideal for every van leasing need is that it stocks vans of virtually every kind and from a wide range of manufacturers.
If you head over to the official website and check the “Makes” menu, here is how the assortment of vans is spanned out:
The vans are listed type-wise at the very left. You can pick and choose from types such as:
- Luton vans: Luton vans are the type of vans that have a cab in front for the driver/passenger and a box-shaped storage compartment.
- Tipper and Dropside vans: Tipper and Dropside vans are used for cargo transport. Tipper vans come with the feature that allows them to “tip” for easier cargo loading and offloading while Dropside vans have a structure similar to pickup trucks.
- Minivans: Minivans are vans that have a large passenger seating area spanning 2 or three lanes.
And so on.
Looking at the large variety of vans that you can get at Swiss Vans, there is pretty much one available for any purpose you may need it for.
Other than the “type” of the vans, they are also classified by brand/manufacturer. And there is a lot of diversity there as well. You can find vans from a wide range of manufacturers like VW, Mercedes-Benz, Ford, Toyota, etc.
2. Upgrades and Customization
Another thing that makes Swiss Vans a great company to choose for van leasing is its upgrade and customization service. You can upgrade and customize the van(s) that you want to rent or buy.
There are different types of enhancements that you can opt for. According to the official website, there are three categories in which these are divided into:
They are the:
- Van alloy wheels
- Interior upgrades
- Splitters and custom grilles
If you to equip the van with some study and new wheels, there are a lot of options available at Swiss Vans. The company offers wheels in 18” and 20”, and from a range of different brands like Aero Super-T, TTRS-2 and so on. Upgrading to tougher wheels can be beneficial for various reasons – such as a better driving experience, better fuel economy, and on-road durability.
When renting (or buying) a van from Swiss vans, you can also get interior upgrades to suit your liking. There are different things that you can do, such as:
- Equipping the interior with custom leather (for the seats and upholstery)
- Carpeting the van floors for safety and comfort
- Adding custom lighting to the inside of the van
- Decking out the storage area with ply lining
And so on.
The splitters and custom grilles let you give the van a look of your own. There are multiple options available for that as well, and you can find the exact details by checking out the official page.
3. Customer Support and Satisfaction
One of the things that makes Swiss Vans stand out even more is its customer support and satisfaction.
Customer satisfaction is a good metric that you can use to gauge the quality of a company. And when it comes to evaluating customer satisfaction, there isn’t much sense in just going for the word of the company itself. Rather, you have to check what people have to say about it on third-party platforms.
On Trustpilot, Swiss Vans has almost 1,200 user reviews and an average rating of 4.9.
Most of the reviews are by customers who are delighted by the support and care shown by the company’s representatives throughout their renting/buying experience. According to the reviews, the people at Swiss Vans are extremely well at responding to user queries and questions and guiding them throughout the process.
Some of the other reviews also talked about the customer support elements that Swiss Vans talks about on the official website. People had to say a lot about the doorstep delivery, for example.
Since this post is about why you should choose Swiss Vans for your van lease, we think that mentioning customer satisfaction and support is really important. For a lot of people, the interaction with the company and the way the entire process is handled can be a major deal maker or breaker.
If you are someone who is looking for a van leasing company where you can get detailed information and updates, and where the process is handled (certifiably) professionally, Swiss Vans is the place to go.
4. Affordability
The rental prices for the vans are quite affordable at Swiss Vans. On the official website, the prices are cited per day or week. (For quotes for longer periods of time i.e., 3 – 12 months, you can give the company a call.)
Here is a glimpse of the prices that are cited by Swiss Vans on the official page.
The prices for the vans start from an average of £25 to £30 per day. You can expect these prices to become more reasonable when you opt for a longer rental period but even on a daily basis, the costs are quite affordable.
These are some of the reasons that you should choose Swiss Vans for your new van lease. Before we give this post the wrap, let’s take a look at some things that you should look for when leasing a van to make sure you go right with your choice.
Things to Look for When Choosing a Van to Lease
We think mentioning this stuff here is important because, at Swiss Vans, there are a lot of available choices that you can pick from. If you’re careful about the one you choose, you’ll be able to get your work done and save costs at the same time.
1. Purpose of use
There are different purposes for which you can require a van. You may need one for passenger transportation or you may need one for moving cargo, etc. There are specialized vans available for all these purposes.
Make sure you pick a van according to the specific purpose at hand. For moving cargo, Luton vans and Tipper vans are used. On the other hand, for moving passengers, minivans and normal small/medium-sized vans are used.
2. Price and Cost
As we mentioned above, Swiss Vans has a daily, weekly, monthly, and even yearly pricing arrangement for van leases.
The more feature-rich and luxurious a van is, the pricier it gets. You have to make sure you pick one that fits your budget.
3. Size
Even in vans made for a particular purpose, i.e., transporting passengers or cargo, there are different sizes that you can pick from. Make sure that you properly check the available options and pick one that is appropriate for your needs.
Final Thoughts
Swiss Vans is a popular and reliable van-leasing (and buying) company based in the UK. It is an excellent company that you can go to for your van-leasing needs.
The prices offered by Swiss Vans, coupled with the excellent service and the wide range of available vehicles, are some of the reasons you should try it out.
It is important to note, however, that Swiss Vans only operates in the United Kingdom i.e., Wales, Scotland, Ireland, and England. It does not operate globally as of yet, so you can only avail of its services if you are in the aforementioned areas.
Van Lease
Why Choose Swiss Vans for Your New Van Lease
Leasing a van, as compared to buying one, is an appealing option for many reasons.
Van financing is an important consideration if you’re looking to acquire one, whether for private or business use. The UK offers a significant number of van financing options to suit different driver circumstances. This has increasingly made it easier to acquire a new van without paying hefty initial amounts.
Today, vans are an essential part of individuals’ and corporations’ lives, accounting for a significant percentage of vehicles in the country. According to Finder, there were approximately 4.5 million registered vans in the UK by the end of 2022. In 2023, more than 300,000 vans were registered.
If you’re in the market for a new van, what financing option should you choose? Which one best suits your financial situation, and needs? In this comparative analysis, we’ll help you choose the right financing option.
What Are the Various Van Financing Options Available?
Due to the popularity of vans in the UK, there are a handful of financing options to consider. Whichever option you go with, it should be specific to your needs. The options are categorized according to the intended use of the van: business financing and personal financing options. These are Hire Purchase, Personal Contract Purchase (PCP), and Contract Hire.
Hire Purchase
Traditionally, people were used to paying a deposit, followed by monthly instalments to buy a vehicle. That’s the basis of Hire Purchase and is still common even in today’s dynamic markets. Essentially, in HP, you make an initial deposit for the van, but it’s also possible to find deals with no upfront deposit requirements.
In any case, if there’s a deposit, it’s usually 10% of the van’s cost, but you can pay a higher amount. The more you pay, the lower your monthly deposits become. You pay the balance over an agreed period, and this includes the interest on this balance. At the end of the agreement period, you become the owner of the van. So, essentially, HP is hiring the van until you make the final payment to become the owner.
Some HP contracts may also have a small “option to purchase” fee that you’ll need to pay to own the vehicle. Your van financier will let you know if this applies in your case.
Key Points to Note About HP
- Your monthly payments can be significantly higher compared to Contract Hire and Personal Contract Purchase (PCP).
- You don’t own the vehicle until you’ve completed your payments.
- The van must be put under proper insurance and maintained regularly until you complete your payments.
- If you fall behind on your monthly payments, the lender has the right to repossess the van without a court order. This may continue until you’ve cleared a third of the vehicle’s payable amount.
- You don’t have the right to sell the van until you’ve settled the HP agreement costs.
Advantages of HP
- Fixed monthly payments make it easier to budget for the cost.
- No restrictions on mileage.
- At the end of the agreement, you become the owner of the van.
Cons of HP
- You may have to put up with higher monthly instalments compared to other van financing options.
- Van ownership is transferred only after your final payment.
When should you consider HP?
HP is great if you want to own the van, but want the rights to use it without limitations while you wait to complete your payment.
Since the monthly payments are not fixed (due to interest on the balance), it may not be the best for startups and mid-sized businesses. Instead, it can best suit individuals who want a van for personal use.
Personal Contract Purchase (PCP)
A personal contract purchase (PCP) works in the same way as HP financing, but with lower monthly fees. You’re required to pay the upfront deposit, usually 10% of the van’s cost, but you may also get a 0% deal. However, the cost will be higher in the long run.
After paying the deposit, you pay equal monthly instalments over the contract period. But the amount won’t cover the total cost of the vehicle. That’s where the balloon payment at the end of the agreement comes in. This allows you to own the vehicle, but you can also opt not to pay and instead return the van to the financier.
Key Points to Note About PCP
- Under PCP, you’re simply paying for the van depreciation for the period of the agreement, along with the interests calculated on the total cost of the van.
- If you choose the PCP and opt to own the van, you should know that the final balloon settlement calculations are based on its guaranteed future value (GFV). This disregards depreciation factors such as damages. Depending on the lender, you may end up paying more than what you had in mind, despite the scratches and bumps on the vehicle.
- You should also consider your annual mileage estimates because your van comes with a mileage limit. Should you exceed this limit, you may have to pay for the excesses as laid down in your contract.
- The van must be properly insured under comprehensive insurance until you pay off its value or the contract ends.
Advantages of PCP
- The monthly payments are lower compared to HP.
- Better flexibility at the end of the agreement. You can choose to own or return the van and take another PCP agreement.
- With the upfront knowledge of your monthly fees, it becomes easier to plan your finances.
- No residual value concerns if you opt to own the van.
- Service and maintenance may be included in the contract.
Disadvantages of PCP
- Your PCP agreement has mileage restrictions.
- You may be required to pay additional charges for excessive wear and tear.
- A comprehensive insurance may be required for the agreement period.
When Should You Choose PCP
You’re better off choosing PCP if you want a van financing option with a lower financial outlay and known fixed monthly fees. Also, it’s suitable if you want to own the van at the end of the agreement.
In that case, it can best suit a business that is rapidly growing or wants to have a fleet of its own in the future.
Contract Hire
Contract Hire, also referred to as a van lease, is a long-term van rental agreement. It presents one of the most cost-effective ways to drive a brand-new van without hefty upfront costs. In this type of van financing option, you pay monthly fees to use the vehicle as if it were yours. You don’t own the van, nor do you have the ownership option. Instead, you simply return the van to the lender when the contract expires.
The length of a Contract Hire is usually between 12 and 48 months. Just like PCP and HP, you also pay an initial deposit before starting your monthly payments.
Key Points to Note About Contract Hire
- You don’t own the van at the end of the contract, nor do you have an option to purchase it.
- Your road tax is covered, and you may get other tax benefits, such as VAT deductions.
- You never have to worry about the burden of vehicle depreciation, as it is with PCP.
- Since you have to return the van, you need to factor in the damages by the end of the agreement. If the damage is beyond the normal wear and tear, the lender will require you to pay for it. Such conditions and other lender-specific terms are usually outlined in the agreement when you sign up for the van lease deal.
- The mileage restriction requires you to estimate your annual mileage in advance at the start of the contract. Any excess may attract penalties from the lender.
- You may incur penalties if you terminate the contract early.
- Some lenders may also offer an option that includes a maintenance and service package. This is referred to as a Business Contract Hire (BCH).
Advantages of Contract Hire
- The monthly payments are lower compared to PCP and HP.
- Vans used for business purposes benefit from a 100% VAT deduction.
- VAT payment is done on every lease rental instead of upfront.
- Vehicle excise duty (VED) is catered for during the entire contract period.
- Eliminates the stresses that come with vehicle ownership.
- Van fleet administration is minimal.
- No dealing with van depreciation risks.
- Save your capital for business growth.
- No stresses of disposing of the vehicle.
Disadvantages of Contract Hire
- Mileage restrictions can limit busy businesses.
- No ownership option available.
- You may be charged excess fees for damages greater than reasonable wear and tear.
- Full comprehensive insurance for the van is required.
When Should You Choose Contract Hire
A Contract Hire best suits you if you want a van financing option with a lower financial outlay at the beginning. It’s also best if you want fixed monthly payments and don’t want to deal with the stresses of full vehicle ownership.
This option is suitable for startups with tight capital. Leasing the van allows you to direct the extra capital to run your business.
Which Van Financing Option Is the Best
There’s no perfect financing option for everyone. It all depends on your unique circumstances, preferences, and budget. However, you should base your decisions on factors like ownership, monthly fees, mileage restrictions, and penalties for damages. Also, consider the flexibility offered at the end of the contract.
By closely looking at the pros and cons of each van financing option, you will be better positioned to pick the right option for you. If you still don’t have a clue about which option to go with, find a reputable lender to help you review the options.
Van financing is an important consideration if you’re looking to acquire one, whether for private
Considering buying a Ford Transit Custom For Sale? Spacious, inventive, and dependable, the Ford Transit Custom has established itself as the leader of the medium van pack and is the most popular van sold. As one of the greatest one-ton vans available, the Transit Custom combines the convenience of short and long wheelbases with the power of a 2.2-litre TDCi diesel engine. Other standout design elements include an ergonomic driving posture with excellent sight and an easy-to-use interface. Here, we look at why it’s such a wise decision.
What is the difference between Ford Transit and Ford Custom?
The size, intended function, and target market are the main distinctions between the Ford Transit and the Ford Transit Custom. The Ford Transit is a larger, full-size van with a higher payload capacity and ample cargo space that is perfect for heavy-duty commercial applications and larger transport demands. It is built for commercial use. It can accommodate a variety of business needs with its various body types, which include cargo vans, passenger vans, chassis cabs, and cutaway versions.
Conversely, the Ford Transit Custom is a mid-sized van that is more manageable and compact, making it a good choice for people or companies that need a flexible car for smaller-scale or urban operations.
The Transit Custom offers plenty of cargo space and useful features in a more compact design, even with its reduced size. It is especially well-liked by small and medium-sized businesses, who view it as a more affordable choice for those who appreciate agility and efficiency in their business vehicle but do not require the full-size Transit’s large capacity.
Ford Transit Custom
Transit Custom Vans have always been known for their durability, usefulness, and dependability. Now, the mid-sized van offers even more creative features and smart technologies. The Transit Custom Van is offered in a variety of powertrain options, including a plug-in hybrid van.
In addition, there are several roof and wheelbase combinations available if you require a high-roof van or are transporting larger goods. Whatever your company’s demands are, the Ford Transit Custom Van is designed to help you run more efficiently.
Here are the top features of the vehicle that compel everyone to consider investing in the Ford Transit Custom for sale.
Select Shift Automatic Transmission
Both the 130 PS and 170 PS engines come with a six-speed SelectShift automatic transmission. This is the basic powerplant on a variety of body designs and GVMs, and it’s intended to deliver a smooth, pleasant driving experience, particularly in congested stop-start traffic. If you choose, you can change gears manually by pressing the gear shifter buttons on the gear lever. It also allows you to lock out gears in more tough driving conditions like while you are driving on steep slopes or slick terrain.
Zero Emissions and Surprising Range
Plug-in Hybrid Vehicles (PHEV) have all of the capability of full hybrid technology, with the added benefit of being able to charge from an external power source. The higher battery capacity allows them to achieve zero emissions when driving for distances of up to 56 kilometers, with the option to switch to Hybrid mode to conserve battery life and to petrol or diesel-only for longer trips.
The Future of Commercial Vehicles
The sophisticated electric powertrain may be charged at the mains and runs entirely on electricity for shorter trips. The van’s multi-award-winning 1.0 liter EcoBoost engine ensures exceptional efficiency even on extended travels. The Transit Custom Plug-In Hybrid van reduces local pollution while offering all the features and capabilities that you would expect from a Ford Transit custom for sale.
Active Park Assist Feature
Parking has been made a lot easier in this model with the Active Park Assist feature. It’s not always simple to stop for a delivery on a busy roadway. especially with the restricted visibility and enclosed rear load room. After locating acceptable spots, Active Park Assist can safely maneuver your Transit Custom Van into them. All you have to do is regulate the gears and brakes. When you’re finished, Park-Out Assist can even help you avoid parallel parking lots again.
Use of Geofencing systems
Geofencing is a feature of the Transit Custom plug-in hybrid that is intended to enhance the quality of the air in the surrounding area. When the Transit Custom Van detects that it has entered a low-emission or congested area, it will immediately switch to electric driving only. Additionally, users can designate unique “green zones” to cut emissions close to schools, warehouses, and urban areas.
Also available as a plug-in hybrid van
The Transit Custom Plug-in Hybrid Van combines an EcoBoost 1.0-litre engine with a battery-powered electric motor. With selectable EV modes, you can alternate between driving power from the gasoline engine, the electric motor, or a combination of the two that uses less fuel. With a 56 km range, electric vehicles are only capable of producing zero emissions. Perfect for city operations, even in the recently implemented ULEZ.
PRE-COLLISION ASSIST
This feature monitors the distance between your van and oncoming traffic and pedestrians, keeping an eye out for potential collisions. If you do not react when the system warns you of an impending collision, the brakes will be applied automatically. intended to go at up to 50 mph (80 kph) on regular roads.
Charging the vehicle battery
There are several ways to keep your electric car charged, including using sophisticated self-charging equipment or connecting it to the mains. For a summary of the most popular methods to guarantee that your automobile is fully charged and prepared for use when you need it, watch this animation.
Options to suit your business needs
With so many possibilities at your disposal, customize your Transit Custom to meet your business’s demands. The optional Rear Liftgate Door10’s clever design enables you to load and unload even in the rain. To facilitate loading and unloading of your van from either side, you can choose the optional Dual Side Load Doors11 or the High Roof12, which provides more height for greater cargo volume. Transit Custom is designed to complete the task.
Full driver assistance
With the array of driver assistance systems that Transit Custom is equipped with to support you and your group while driving, you can drive with confidence. Autonomous Emergency Braking (AEB) with Pedestrian Detection, Blind Spot Monitoring System, Adaptive Cruise Control9, and Lane Keeping Aid with Lane Departure Warning are among the features. With its reverse camera and front and rear parking sensors, Transit Custom makes navigating construction sites, crowded parking lots, and confined places easier.
Van with Double Cab
The ideal option for transferring personnel and goods is the Transit Custom Double Cab in Van (DCiV). The 340L DCiV has space for the entire crew with an extra 3 seats behind the driver and up to 6 seats overall. Desire room and style for your group. There is a DCiV version of the Transit Custom Sport as well.
Pros
- Is easy to drive and comfortable
- Features contemporary traits and appearances
- Sophisticated undercarriage and interiors
- Outstanding payload ratings
Cons
- Models before 2018 are not very practical for current workload requirements
- Expect a bouncy ride when the vehicle is empty
- A few security issues have been noted
In summary
Ford Transit Custom van proves to be an unmatched option for companies of all kinds, providing a reliable, adaptable, and efficient combination. The Transit stands out in the commercial vehicle market thanks to its maximized cargo space, excellent driveability, configurable layouts, great engine options, and pleasant driving experience.
The Ford Transit Custom for Sale is made to meet and surpass your needs while providing dependable performance, whether you’re a larger company looking to expand your fleet or a small business looking for a cost-effective solution. We encourage you to consider your alternatives if the Ford Transit van’s wealth of features and benefits match your needs for a commercial vehicle.
If you can’t afford to invest in a whole new model, you can consider renting the vehicle or going for used car models on sale. This will help you secure the model at a much cheaper price while leveraging all the benefits. Make sure to consider a trusted vendor who can help you secure a reliable Ford Transit Custom for Sale. This will ensure that you are getting value for the money you are investing in the van model.
Considering buying a Ford Transit Custom For Sale? Spacious, inventive, and dependable, the Ford Transit
Most people looking for a van in the UK, either for commercial or personal use, often struggle with whether they should purchase or lease the vehicle. Both the cases have their own pros and cons that should be thoroughly analyzed to make the right decision.
In this article, we’ll discuss the advantages and disadvantages of buying vs. leasing a van to help you decide-
Buying a Van
Pros
1. You Own the Van
The biggest advantage of buying a van is the ownership it comes with. Unlike leasing where you’re basically renting the van for a specified period, buying gives you ownership of the vehicle.
Even if you purchase the van through a loan, every monthly payment will get you closer to own a vehicle. Once the loan is fully repaid, you’ll be the rightful owner of the van. So, the purchased van is yours to keep and can be a valuable addition to your personal or business assets.
2. Freedom to Customize the Van
When you’re the owner of the van, you have complete freedom to customize it the way you like. This is especially useful when you need the van for commercial use as you can customize it according to the preferences and specific needs of your business.
Be it adding some specialized equipment, interior modifications, or branding, ownership provides complete flexibility to tailor the van as per your requirements.
3. Zero Mileage Restrictions
When you take the van on lease, the lease contract will feature a fixed mileage for which you can use the vehicle during the lease period. Go beyond the mileage limit and you’ll be required to pay an additional fee depending on the extra miles. But with ownership, there are no such mileage restrictions.
You have complete freedom to use the van as much as required without worrying about any mileage limitations or extra costs.
4. No Other Extra Charges
Lease agreements also generally come with a host of other restrictions, which if you’re not fully aware of, could lead to significant expenses. For instance, if you’d like to terminate the lease before the decided lease period, you’ll have to pay a penalty fee.
There are other restrictions related to excessive wear, maintenance, etc., that could make the entire process of leasing more expensive. But you don’t have to worry about these restrictions or penalties if you own the van.
5. Cost Savings Over Time
While the initial upfront cost of buying a van is higher than leasing, ownership can result in significant cost savings over time. Once the loan is fully repaid, you no longer have to worry about any monthly payments.
On the other hand, if you’re leasing the van, there will be an ongoing monthly payment as long as you use the vehicle.
Cons
1. Higher Upfront Payment
One of the most significant reasons why many people prefer leasing a van is the higher upfront cost of purchasing. In the UK, you’re required to pay at least 10% of the van cost as a down payment when buying it through a loan. The down payment could be as high as 30% in some cases depending on loan eligibility.
For most people with limited capital, this higher upfront cost is a significant barrier. In comparison, leasing is considerably cheaper.
2. Maintenance Costs
When you’re the owner, you’re fully responsible for anything and everything that goes wrong with the vehicle. Apart from the routine maintenance costs, there can also be expensive unexpected repairs as the van ages.
Irrespective of whether you’re using the van for commercial or personal use, these repair costs can put a considerable dent in your finances.
3. Higher Insurance Costs
While you’ll have to pay for insurance irrespective of whether you’re buying or leasing the van, the premiums are generally higher with ownership. The owner is completely responsible for comprehensive coverage and potential liability of the vehicle.
Depending on the usage, make, and model of the van, the insurance premiums could be a significant ongoing cost with van ownership.
4. Long-Term Commitment
As a van owner, you’ll commit yourself to the same vehicle for several years. In most cases, you’ll be using the vehicle for at least 5-7 years. But what if during this period, the transportation needs of your business start to change? Or what if you’d like to upgrade to a newer van with improved features?
You’ll then have to get into the time and effort-consuming process of selling the existing van and then purchasing a new one. In most cases, buyers are unable to recover the initial investment of the existing van.
5. Van Depreciation
Another significant downside of buying a van is depreciation. With time, the market price of your van will fall due to depreciation. This will impact the resale value of the vehicle.
It is generally said that vehicles lose at least 15%-30% of their market price in the very first year. From the second year onwards, it continues to lose 10%-15% of its value every year on average.
Leasing a Van
Pros
1. Lower Initial Deposit and Monthly Payments
If you’re concerned about the high down payment of purchasing a brand-new van, leasing can be a better option. Apart from the down payment itself, even the monthly payments of a lease are considerably lower than monthly loan installments.
The affordability of van leasing makes it a preferred choice for many people who want to acquire a van for personal or commercial use in the UK.
2. Access to Newer Van Models
As discussed above, van buying requires you to commit yourself to a single model for many years. But with leasing, you can drive newer models with the latest features and technologies without the long-term ownership commitment.
This can be highly beneficial for businesses that abundantly rely on their van fleet for their day-to-day operations and want to maintain a reliable and modern fleet.
3. Switch or Purchase the Van
Most lease agreements allow you to either return the van or purchase it at the end of the lease. If you’d like to upgrade to a newer model, you can do so once the lease ends. Alternatively, if the van has become a critical part of your daily operations, you also have the option to buy it.
The flexibility to upgrade to a new van or purchase the leased van is another reason that makes leasing an excellent choice, especially for commercial applications.
4. Lower Repair Costs
When you lease a van, it is generally covered under the manufacturer’s warranty throughout the lease period. In other words, you can avoid significant repair costs if you maintain the vehicle as per the terms and conditions mentioned in the lease agreement.
Moreover, many van leasing companies offer a variety of add-ons like maintenance packages, roadside assistance, and more to offer enhanced convenience.
5. Tax Benefits
Leasing a van in the UK for commercial use can also offer a variety of tax benefits. For instance, businesses generally claim back a certain portion of VAT applicable on lease payments and deduct these payments as a business expense.
The tax benefits can offer considerable savings and enable companies to improve their bottom line.
Cons
1. You Don’t Own the Vehicle
The biggest drawback of van leasing is the lack of ownership. Unlike loan installments where each installment increases your equity in the van, monthly lease payments only contribute to van usage. Once the lease ends, you have to return the vehicle or enter into a new lease.
On the other hand, if you purchase the van through a loan, you become the owner once you fully repay the loan amount.
2. Mileage Restrictions
Another significant disadvantage of van leasing in the UK is the mileage restriction. If you exceed the mileage limit mentioned in the lease agreement, you’ll have to pay a penalty. And it is not always easy to know how many miles your van will be driven in a year when signing the lease agreement.
When you purchase the van, there are no such restrictions and you’re free to drive the van for as many miles as you want.
3. Wear and Tear Penalty
While lease agreements generally allow for normal wear and tear, you can be penalized for any damage that is beyond normal. If you don’t maintain the van as per the provisions of the lease agreement, the penalty can be steep in certain cases.
Thus, if you go ahead with a van lease, ensure that you also purchase the add-on maintenance package or insurance offered by the lease provider.
4. Long-Term Cost
While the monthly lease payments are lower than loan installments, they’ll still amount to a significant sum in the long run. In many cases, the lease amount you pay over the years could be higher than the cost of purchasing the same vehicle.
So, if you’ll be using the van for several years and don’t mind the long-term commitment to a vehicle, buying can be a more cost-effective option.
5. Limited Customization Options
Leasing agreements generally have restrictions on van customization. While they might allow you to make minor changes to the vehicle, significant customizations are generally not allowed. In a way, this restricts your ability to personalize the vehicle as per your requirements.
Needless to say, if you purchase the van, you have complete freedom to customize the van the way you want.
Should You Buy or Lease a Van?
As you can see there are several pros and cons of buying vs. leasing a van in the UK. The selection between the two should ultimately depend on your specific needs and finances.
While ownership comes with equity build-up, customization freedom, and unlimited mileage, the higher initial cost can be a major deterrent. On the other hand, leasing offers benefits like lower upfront and monthly costs and access to newer models but it also comes with mileage restrictions, customization limitations, and no ownership.
Thoroughly analyze these pros and cons to make the right decision. If you’re unable to make a decision, let the experts at Swiss Vans help you out. As one of the leading van sellers and leasing specialists in the UK, you can rely on our expertise to decide whether you should buy or lease a van. Contact us today to know more.
Most people looking for a van in the UK, either for commercial or personal use,
At long last Full Hornet Pack
- Full Hornet pack
Front splitter
Side skirts
Rear diffuser
New Grille
Swiss Badges
Lowered suspension
Blue Pilot seat leather
At long last Full Hornet Pack
Full Hornet pack
Front splitter