Leasing can be a smart, cost-effective way to drive a new van, but it’s important to weigh a few key factors before signing a contract:
1. Mileage Limits
Lease deals come with a set annual mileage allowance. Exceeding it can lead to excess mileage charges, so choose a realistic limit based on your driving habits.
2. Vehicle Condition
You must return the van in good condition, allowing for fair wear and tear. Damage beyond this may result in extra fees.
3. Ownership
You wonβt own the van at the end of the leaseβyou simply return it. If you prefer to eventually own a vehicle, a PCP or HP finance option may be better.
4. Early Termination
Ending a lease early can be costly, often requiring payment of remaining rentals or a termination fee.
5. Upfront and Monthly Costs
Leasing involves an initial payment (e.g. 3β6 months’ rental) and fixed monthly fees. A larger initial payment usually lowers monthly costs.
6. Credit Check
Leasing is a form of finance, so you’ll need a credit check to qualify.
7. Insurance
You must arrange fully comprehensive insurance, as itβs not included in the lease.
8. Maintenance & Servicing
Some leases offer optional maintenance packages for predictable running costs. Without it, you’re responsible for servicing and repairs during the lease.