Leasing a van as a sole trader
If you’re self-employed, you might not have considered van leasing yet. This cost-effective finance option can help businesses of any size source reliable transport and is an alternative to buying outright.
To help sole traders better understand how van leasing works, Synergy has explored what business owners should consider and how they can prove their eligibility.
In this guide, we’ll highlight any documents businesses will need to provide and answer some of the most commonly asked questions. We hope to clear up any confusion over leasing a van as a sole trader and offer support in finding a van that meets your business lease needs.
Can I lease a van as a sole trader?
As a sole trader you are eligible for van leasing, which provides you with access to exclusive in-stock lease deals and offers. But first, your business must meet the requirements set out by a finance provider.
Vehicle finance companies require an insight into your business’s financial situation. This allows them to decide if you are eligible or if financing your van is too high-risk.
How do sole traders prove they are eligible for van leasing?
When applying for a van lease as a sole trader, there are certain things you’ll need to evidence as part of the application process. These can include:
- A minimum of two years published business accounts
- 3-months bank statements
- Proof of any bad credit, as this may impact your eligibility.
All of the above will depend on your lease and your chosen finance provider. The number of vehicles being leased, and their on-the-road value is also considered. Certain finance companies will require more information or evidence of business finances, especially if you’re a new business applying for the first time.
Can sole traders get van finance with bad credit?
If you’re self-employed but have a bad credit history, you may find it more difficult to secure a van lease. This is because sole traders don’t have a guaranteed regular income and pose a higher risk to finance companies. Before applying for van finance, it’s worth exploring ways to strengthen your application.
Synergy always suggests you’re upfront about your business profits and don’t overestimate any potential income. Sole traders with bad credit can still secure a van by evidencing accurate accounting and proving they will make any monthly payments on time.
Is a lease van 100% tax deductible for a sole trader?
VAT-registered businesses can claim back a percentage of VAT paid towards their van lease. However, it will only be 100% tax deductible if the van is used for business purposes only and classed as a ‘commercial vehicle’ by the HMRC. Any personal use or mileage will be subject to VAT.
Benefits of sole trader van leasing
There are lots of benefits to leasing as a sole trader. These include:
- a lower initial rental and fixed monthly payments for the duration of your lease
- control over the length and mileage of your van lease
- hassle-free driving thanks to leasing with maintenance options
- avoiding deprecation costs as you aren’t paying towards ownership
- a standard manufacturer’s warranty
- the chance to upgrade your van every couple of years.
What are the best vans for sole traders?
The best vans for the self-employed need to be both affordable and versatile. Here are a few the Synergy team recommend.
Ford Transit Courier
The all-new Ford Transit Courier is a dynamic small van. It comes with a choice of petrol and diesel engines, with an all-electric version expected later in 2024. Ford are consistently the most popular commercial manufacturer and have been ambitious in the design of the Courier.
This trendy urban van is efficient, easy to drive, and comes with an impressive range of standard equipment. This includes a pre-collision system, pedestrian detection, a 12-inch infotainment screen, and a digital instrument panel.
Renault Trafic
The Renault Trafic has become a common sight on UK roads. This third-generation model comes with smart design cues and a choice of length and roof heights.
Step inside, and business owners will find a modern cabin that balances comfort with practicality. There’s an 8-inch touchscreen display with DAB radio, cruise control, and a deadlocking alarm system for peace of mind.
Nissan Townstar
The Nissan Townstar is a versatile van that keeps up with the electric van trend. There isn’t a diesel engine option, with Nissan focusing heavily on sustainability.
The all-electric version has a 45kWh battery and is around 183 miles in range, perfect for a sole trader’s working week. It’s a comfortable and practical van that benefits from a redesigned interior and Nissan’s latest safety features.
Ready to lease a van?
Synergy can help self-employed business owners source their next van with ease. If you’d like to know about your vehicle finance options as a sole trader, get in touch with Synergy today. We’re happy to answer any questions and check your eligibility for van leasing.
This article should be used as a guide only. ‘Leasing a van as a sole trader’ is for information only and is subject to change. Information is supplied by a third party, and Synergy accepts no responsibility for errors in the data. Please contact us if you wish to receive a quotation. Eligibility criteria, terms & conditions apply. You will not own the vehicle. Vehicles are subject to availability. You should verify this information with your tax adviser or accountant before proceeding with your contract.
