Is Purchasing A Van Cheaper Than Van Leasing?
Are you looking to obtain a new van and you’re not sure whether to lease or buy it? Listed below are some key things to consider help you to decide whether to buy the vehicle or to try one of the excellent contract hire deals.
Previously, van leasing was more or less a term monopolised by the big corporates and their huge vehicle fleets. But nowadays smaller businesses and self-employed individuals are also taking advantage of the benefits leasing vans has to offer.
The idea of vehicle leasing is a fairly new concept to the masses, but it has always been known as an effective form of contract.
Are you interested in avoiding high depreciation cost?
Typically a brand new van will depreciate in value up to 60% during the first 3 years on the road. With a contract or lease deal you only effectively pay for the use of the van, avoiding actual ownership and depreciation cost.
Do you have a stable and predictable lifestyle / business?
When you enter into a contract deal, you are typically going to agree to a fixed period of 2 to 5 years in time. If you need to cancel your agreement before the end, there may be a fee for termination.
It is vital that you estimate your likely annual mileage as accurately as possible. If you exceed your agreed mileage, you could be charged excess mileage. If your circumstances change and you find yourself doing a higher mileage, you can amend your van finance agreement during the lifetime of the lease. This could, however, increase your monthly payments.
Do you want better monthly costs?
A monthly agreement leasing plan is likely to be less than if you had taken out a loan or HP deal. This means you can either save money, or drive in a better quality vehicle than you would otherwise do.
Leasing also applies to other vehicle including cars and pickup trucks. For more information about cheap pickup truck leasing contact Mark Williams Vehicle Leasing.
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