Van leasing explained: how does it work?

If you’re looking for a van for your business but need a cost-effective way of paying for it that doesn’t involve a large sum upfront, leasing might be the best option for you.

Van leasing: what is it?

Leasing a van is much like a long-term rental. You pay an initial fee at the start and then a monthly fee to drive it. At the end of the contract you hand the van back, and depending on the deal there might be a final payment.

What are the benefits of van leasing with the lcv group?

A fixed monthly payment

You’ll know exactly where you are every month with a fixed monthly payment for your vehicle.

Instant savings

With a new vehicle you won’t need an MOT for the first three years, which means if your contract is 36 months of less you won’t need to worry about it. You can also claim the VAT back on a commercial vehicle if you are registered.

Easy upgrade at the end of your contract

At the end of your lease, you just hand the vehicle back to us and can then upgrade to the latest model. No need to worry about your vehicle depreciating in value, you can concentrate on finding a great new set of wheels.

Optional maintenance to make things run smoothly

For a monthly fee, the lcv group one-stop maintenance package can help manage any maintenance issues that might arise, from servicing to tyres.

How can I lease a van with the lcv group?

You can customise your own deal on our website or speak to one of the team on 01792 818 538. They can guide you through the step-by-step process:

Find the perfect model

You can browse our extensive range of makes and models here. Can't find what you're looking for? One of the team will be happy to help on 01792 818 538.

Find the perfect package

How long do you need the vehicle for, and how many miles per year? You can tailor the package to suit your personal needs.

Securing the deal with the perfect lender

We partner with a select group of lenders to secure the credit for your vehicle. They will need some personal details and run a credit check to ensure the monthly payments are appropriate. We can then move on with the process of securing your vehicle.

Delivering the perfect vehicle

When everything is in place, your vehicle will be delivered directly from the dealer when ready. Your advisor will keep you up to date with the process, and when it arrives you’re good to go.

End of contract

At the end of your lease we’ll pick up the vehicle and, if you're ready for the latest model, you can start looking for a new vehicle!  

Which leasing/ hiring option is best for me?

You can read our complete guide to the different options available with their individual advantages and disadvantages here, with the main two business options being contract hire and finance lease.

Contract hire is a non-ownership rental agreement that allows you to use a vehicle for an agreed period. It requires an initial advance rental which can be as little as your first monthly rental, followed by a fixed term and mileage with contract options between 24 and 60 months. There are terms and conditions that could result in additional costs on return which the sales team can advise you on.

Finance lease is a non-ownership rental agreement that allows you to use a vehicle for an agreed period. It requires you to put down an initial advance rental that can sometimes as little as your first monthly rental, followed by a fixed term and mileage consideration with contract options between 24 and 60 months, usually followed by a ‘final rental’ or ‘balloon’. As with contract hire, there are terms and conditions that the sales team can advise you on.

How much will it cost per month?

Each deal can be tailored to suit you and your business, but there are four key factors that determine how much you pay each month:

The price of the van or car: The cheaper the vehicle, the cheaper the initial and monthly payments. We have a wide selection of special offers that are updated constantly, which means you could pay less for your vehicle than you might elsewhere. One of the team would be happy to discuss the latest deals with you.

Initial rental: The more you pay upfront, the less you’ll pay each month, and this can be based on an amount to suit your budget.

Interest rates: The deals offered by our lenders are based on current interest rates. This is fixed, so if the interest rate increases while you wait for your vehicle your monthly cost won’t increase, but if it goes down the saving will be passed on, which means you could be paying less than you first thought.

Final valuation: The residual value of your vehicle at the end of the contract is also a consideration, and this will be effected by such factors as length of contact and availability of the model.

Got a question?

You can find the answers to many questions in our FAQ guide, but here are some of the most common questions for those new to leasing:

How much does it cost?

Cost can vary widely depending on the vehicle, but we can help you find the right van or car and have a selection of special offers. You can speak with one of the team on 01792 818538 who will be happy to help.

Are the vehicles new?

Yes, our vehicles are new and will be registered prior to delivery.

Is there a credit check?

Yes, all our finance agreements are subject to a credit check and financial approval.

How quickly will the vehicle be delivered?

If the vehicle is in stock, delivery usually takes between seven and 10 working days once the signed documents are returned to us. Factory orders are subject to manufacturers lead times.

Is insurance included?

No, customers are responsible for arranging fully comprehensive insurance and this must be in place for the term of the finance agreement. We will also need to see proof of insurance two working days before your vehicle is delivered.