How does van leasing work?

Van leasing is a simple way for businesses and individuals to drive a new van without buying it outright.

Instead of paying a large upfront cost, you pay a fixed monthly rental for a set period . . . then return the van at the end of the agreement.

It’s widely used by:

  • Tradespeople

  • Small businesses

  • Fleet operators

  • Sole traders

What is van leasing?

Van leasing (often called contract hire) is a long-term rental agreement. It offers some advantages and some drawbacks you need to consider before deciding to lease.

Advantages

  • Enjoy a new van with each contract

Leasing allows you to upgrade to a new van or model without the up-front costs. This keeps you in an a relatively new vehicle with all the latest technology and features

  • Include a maintenance package in your lease

Leasing already minimises the main costs for motoring - depreciation. However, a maintenance package gives you a predictable, monthly cost for keeping your vehicle in tip-top roadworthy condition

  • Lower the cost hurdle for the van you need

Saving up a lump sum for expensive vans, or waiting for finance loans to cover costs can lead you to missing out on the vehicle you need, or costing your business more in the long term. Leasing ensures you can get the van you want now, not later, for a simple monthly fee.

Disadvantages

  • Your monthly cost is based on mileage

High-mileage businesses will obviously cost more for leasing, but this can be configured at the leasing stage. It's important to work out your accurate mileage expectations and contact us straight away if you think that will be exceeded. It will likely work out cheaper paying an agreed price for extending your mileage rather than excess mileage at the end of your contract.

  • You don't own the van at the end of the contract

A standard business contract hire agreement means you return the van at the lend of the lease period - you don't own it. Similar to renting it for an extended period (the time specified in the lease). If ownership is needed, LeaseCar offers other arrangements for businesses which might be more suitable.

  • You must return the van in good condition

The value of the van is based on its condition, so you must return it in a condition commensurate with its age and mileage or there may be additional fees. See our guide on what counts as 'fair wear and tear' for leased vehicles.

How does leasing a van compare to buying?

Leasing vs Buying a van

Leasing

  • Lower upfront cost

  • Fixed monthly payments

  • No resale hassles

  • Access to newer vans

Buying

  • Full ownership

  • Asset on your books

  • Higher upfront investment

  • Exposure to depreciation

For many businesses, leasing protects cash flow and reduces risk.


What is the van leasing process?

Leasing is relativity simple: you lease a van, pay for fixed monthly payments and return the vehicle at the end of the term agreed.

Five simple steps take you through the process

Choose your van

Pick a van that suits your work and usage. Popular options include:

Build your lease and provide details

Choose your contract length, mileage and provide details and financial information for your credit application.

Van delivery

Your van is delivered free to your home or business address.

Drive and enjoy!

You pay fixed monthly rental payments and use the van as agreed.

Return your van

At the end of the contract, return the van in fair condition and either consider a new lease or walk away with no obligation.


Getting the best deal for your business

Our website is updated daily with our latest offers and deals.
Models can go on offer for short periods of time and you may only have a limited window to take up an offer. It's a bit like booking a flight! Van lease deals change frequently due to manufacturer offers, available stock and market demand. Alternatively, why not make a general enquiry and we will keep in touch with some of the best deals as soon as they come out.

What affects the cost of van leasing?

Your monthly rental is based on:

  • The van make and model

  • Contract length

  • Annual mileage

  • Initial payment 

  • Residual value (depreciation)

Vans for work use tend to have high mileage, heavy use and specialist specifications, which can cost more.

However, selecting the right kind of van for your business can ensure that you don't pay for unnecessary specifications, and have a vehicle that is ideally suited for your needs. The flexibility to upgrade at the end of the lease also means your van is usually covered by warranty, is generally more reliable than older fleet stock and therefor less likely to disrupt work through downtime.

The growth of electric vans (such as the Kia PV5) can also save you ongoing costs if there is a suitable model for your business. They are especially useful for urban businesses, delivery drivers and companies with sustainability targets.

  • Lower running costs

  • Lower emissions and access to clean air zones

  • Green credentials and lower carbon emissions

Why choose us for van leasing?

We offer a wide range of affordable funding and lease finance options including:

  • Business Contract Hire

  • Personal Contract Hire

  • Business Contract Purchase

  • Finance Lease

  • Lease Purchase

As one of the UK's leading van leasing and contract hire specialists, we pride ourself on both the quality and quantity of our range of van lease deals across many of the biggest van brands. Choosing the right van isn’t just about price — it’s about finding something that works for your business.

See our full range of van offers, our latest in-stock deals, or simply call us on 0344 745 1818 to discuss your business needs.

As featured in

LeaseCar UK VAT Registration No. 715 25 1558, Company Registration No. 3635778 Financial Services Register No. 677877, ICO Registration No. Z7112215

LeaseCar UK is a trading style of Central Contracts (S.O.T.) Limited. Central Contracts (S.O.T.) Limited is a credit broker not a lender. Central Contracts (S.O.T.) Limited is authorised and regulated by the Financial Conduct Authority LeaseCar UK is acting as a credit broker for the purposes of arranging your selected finance contract.


We have a commercial relationship with a carefully selected panel of lenders and we may receive a commission from the selected lender. We do not charge you a fee for our credit broking services. The Financial Ombudsman (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.

LeaseCar UK is a proud member of the Central Contracts family.
Central Contracts is authorised and regulated by the Financial Conduct Authority.