Tips on van leasing or contract hire
So you have to have a new van? Possibly your business involves the transportation of goods, or maybe you are a sole trader using the van as an advertisement for the company and also your workshop. The process of deciding which van is right for you is more complicated than buying a car! Make sure that before you begin your search for a van, you are certain that you are really going to need one. If it’s just a case personal transport with some gear, then generally speaking estate cars will work out cheaper than vans in terms of fuel economy and operating costs.
Higher road tax for most cars and vans need to be considered as additional charges, not forgetting the congestion charge. But if you are looking for a van, then what would be the best type for you? Is the environment a concern, and would it affect your choice of vehicle? Which van do you require: a 4×4, a micro van a pick-up truck or one of the larger vans? Carefully research your options within the price range, and compare the various specifications on offer. Generally, the larger the van type the larger the engine that will power it (V8 or V10) and with it comes a higher running cost. Micro vans will offer better fuel economy by sacrificing load capacity but larger vans can often be easier to maintain if repairs are necessary.
Finally, figure out how you can afford your van: buying or leasing? If you don’t wish to buy, then a van lease is probably the best option. There are a range of different leasing options dependent on the size required, for example: medium van leasing or pick up truck leasing. What this means is that you make smaller repayments based on the residual value of the van, on a monthly basis. When the term is complete, you can simply return the van and walk off, or begin a new leasing agreement. The idea of van leasing is a good one, especially is you like to have a new van every year or so and need lower payments monthly, but you will need to produce predictable mileages for it to work well.
