Most of those who want to have their own mobile workshop choose leasing a van. Not in vain, according to the FN50 2024 special report, this type of financing already represents almost 90% of the market in the United Kingdom. How about we start by telling you how it works?
Leasing a van represents an advantageous option for anyone who wants to use this vehicle as a mobile workshop. In this article, we invite you to discover how leasing a van works and both advantages and disadvantages.
Table of Contents
How does leasing a van work in the UK?
If you are a carpenter, electrician or installer, you can set up your own service company in a van without having to buy it thanks to leasing. This contract allows you to use the vehicle for a certain period of time, in exchange for paying fixed monthly payments. At the end of the agreed term, you have the option to buy the pickup paying a pre-established residual value.
In a simplified way, the procedure to rent a van with this system is as follows:
- You choose the model (eg: Mercedes-Benz eCitan Van).
- The provider makes a credit evaluation to check your solvency.
- You negotiate the contract with the supplier: term (e.g. 5 years), maximum mileage (e.g. 15000 km), monthly payment (e.g. £245), etc.
- At the end of the term of the contract, you can buy the van, return it and/or renew the lease with a newer vehicle.
What to take into account when leasing a van?
- What does the monthly fee include? The most complete leasing services cover: comprehensive insurance, maintenance, roadside assistance, tire changing, technical inspection and taxes.
- Alterations to the vehicle: Even if you can drive the van, ownership remains with the leasing provider. Therefore, you will need their authorization to make modifications to the vehicle (e.g. installing van racking).
- Make sure the contract fits your needs: you know your business better than anyone. Verify that the duration, mileage and installments are consistent with your way of working.
- Check the penalties: These are financial penalties that are imposed on you for exceeding the permitted kilometer limit or for damaging the vehicle. Make sure they are not too burdensome!
- Compare providers: The best strategy to obtain competitive prices and advantageous conditions is to compare several leasing companies.
- Understand the end-of-contract options: Some agreements allow you to purchase the van at a predetermined price, while others require you to return it.
Advantages and disadvantages of leasing a van in the UK
Leasing a van in the UKs is a popular alternative, offering flexibility and financial benefits for businesses. However, before committing to a lease agreement, you must to understand the key factors involved such as costs, contractual obligations and other potential limitations.
| Disadvantages | Advantages |
| – The total cost can surpass that of a direct purchase due to the interest and commissions applied. –Terminating the contract before the deadline set may result in significant financial penalties. -You need the landlord’s approval to make major modifications in the van. | -Allows access to vehicles without making a large initial investment. -Leasing fees can be deducted in the payment of taxes. -This contract allows testing the van before buying it, which facilitates its comprehensive evaluation. |
Making an informed decision requires both pros and cons to determine whether leasing aligns with your specific needs, as well as long-term goals. In this regard, when you have a mobile workshop, you need to make smart decisions. One of them would be van leasing and, of course, another good idea could be to optimize your storage with the van racking we offer at Tecnolam UK.
