Why van leasing is a far better option than a rental agreement?
Thursday, July 15th, 2010The question that I am asked more and more year in and year out is what is the best choice when considering leasing or renting a van for your business? What are the benefits attached to committing to a lease rather than a rental agreement?
The answer is quite simple. When you lease a van you get to choose which type of van appeals to your sense of taste and style, from the extensive range of familiar makes and models. You can choose the colour, what specification, extras and particularly the capacity. As a customer you are spreading your monthly payments over an agreed term and as a result your monthly payments will be cheaper than renting. This is because the finance company knows precisely how much money they will be earning from the deal because of the commitment the customer has made.
Because of the unique relationship that is built up over time with our suppliers such as LGV, Fiat and Vauxhall, we are able to get excellent prices and pass these directly on to the customer.
This results in lower start up costs, which help improve the customer’s cash flow. A customer also has the option to own or sell the vehicle at the end of the van leasing agreement period. This allows them to keep some equity in their van. Typically, leasing agreements last from 2 years minimum up to 5 years, with deposits in the region of 3 months payments upfront. This amount is flexible, and can be negotiated further to the benefit of the customer.
An extra bonus attached to leasing is the availability of sign writing your logo or brand onto the side of the van. This is a great way to advertise to your customers, and reinforce your credibility within your market place.
Alternatively, with rental you can pay your rental charge each month and have nothing to show for it at the end of the period. This route is generally adopted by those customers who are interested purely in a rental agreement over a shorter period of time.