What Are The Advantages Of Leasing A Van In The UK.

For any business, large or small, it's critical to monitor areas where money can be saved. Leasing a commercial vehicle may help in making some crucial financial savings. There are various advantages of leasing a van in the UK over an outright purchase.

Maintenance and Servicing

The leasing company will be responsible for some of the maintenance and service issues of the vehicle. These will be determined at the outset and can potentially save substantial amounts of money.

Deposit and VAT

If making a cash purchase for a van there is normally a requirement to leave a large deposit. Add to this the entire amount of VAT for the vehicle and your initial outlay will be a sizeable sum.

When you lease a van in the UK, there is normally only a small deposit required. This may equate to three months payments. The VAT (currently 20%) is only due on the amount of the deposit. The remaining VAT still has to be paid but is spread throughout the term of the payments making the initial cashflow more manageable.

If your business is registered for VAT, it may be possible to claim back the VAT paid on the monthly van lease payments.

Tax

Lease payments are fully tax deductible and can therefore be claimed back against an annual tax bill.

New Van

Cash flow may well dictate the type or age of van if you're looking to purchase outright. However, one of the advantages of leasing a van in the UK means you can select a new vehicle. This can give added prestige and status to the business as well as improved reliability.

It's also possible to upgrade and change leased vehicles. This removes the difficulty of trying to sell a high mileage or well used commercial vehicle. The leasing companies will have their own terms for this.

Fixed Payments

For any business owner, having fixed monthly payments for a leased van is of the highest importance. These payments can often be less than the repayments on a loan, taken out to purchase the same vehicle.

A new lease agreement usually includes the amount of miles you need to cover in a year. Go over this figure and you could face hefty charges. So an accurate mileage estimation is vitally important.

With all the advantages of leasing a van in the UK, it's important to carefully choose from the many leasing companies available and the many quotes offered. Work out the size of van required, the estimated mileage and expected monthly payments to obtain the best possible deal.