Van Leasing FAQs

There are various types of van leasing contracts to choose from, namely business contract hire or finance lease. For contract hire agreements, road tax is included for the term of the agreement; and for finance lease agreements it is typically included for the first 12 months only. A van leasing contract can also include the cost of ply-lining in the cost of the monthly rental.There is also the option to include a service and maintenance package in the cost of the monthly payments. This typically includes all routine servicing and maintenance, as well as tyres (different package offer different tyre coverage).

Van leasing may be right for you if you are looking for a convenient and tax efficient solution to getting a van or fleet of vans on the road to support your business. Leasing offers potentially less upfront payment than other forms of finance.Van leasing, or business contract hire agreements, are a long-term hire agreement, usually taken for 2, 3, or 4 years. At the end of the contract, the van is collected and handed back. There is usually no option to buy the vehicle and you do not own it. The van remains the property of the leasing company. As you are not paying to own the van, leasing can be very cost efficient for businesses. Up to 100% of the VAT can be claimed back for VAT-registered companies. There is also the option to include servicing and maintenance in the cost of the monthly rentals. This covers all routine servicing and maintenance and includes tyre cover. Road tax is also included for the length of the agreement. Ply-lining can also be included, and you can also add your own signage to the van as long as it is removed at the end of the contract prior to collection. An alternative option is to take a van on a finance lease agreement. This option can be configured so that you can pay the full cost of the vehicle over the term, or pay a lower amount with a final payment due at the end of the contract. The van remains the property of the leasing company during the term of the finance agreement. The van is then usually sold or you can continue to lease it under a “peppercorn” agreement.

Van leasing offers a convenient solution to securing the right type of van and the right number of vans required for your business. As a leasing broker, Synergy can source most makes and models of vans and pick-ups from our network of vehicle manufacturer relationships. We can also source special offers from our panel of carefully selected finance providers. We have access to nationwide stock lists of vehicle manufacturers to source the right van for you. We can also place factory orders for any specific van or pick-up requirements.

The type of van leasing contract and the chosen finance provider will depend on the modifications allowed or any potential end-of-contract charges.For example, ply-lining is added to most van leasing contracts, unless we are instructed otherwise. Racking systems can be installed, but it is usually better to remove these before the van is collected at the end of a contract hire agreement. Tow bars can be added as part of the leasing agreement.However, for any modifications it is worth contacting and checking with the leasing company prior to undertaking any changes. For example, there may be end of contract charges if holes are drilled into the floor for securing bolts if you have a business contract hire agreement. If you have a finance lease agreement, and plan to sell the van at the end of the agreement, this will not be so much of an issue unless it means the van will sell for less than anticipated or will prove harder to sell. Making our van leasing consultants aware of any additional requirements or special uses of your van fleet will help us make the most suitable recommendations for your individual circumstances.