Is van leasing better than van rental?
I am often asked by prospective customers which is the most favourable route to take when obtaining a new van: opt for a rental or leasing deal. What are the major benefits to taking out a lease, as opposed to a simple rental agreement?
It is a simple choice. When you lease a van you get to choose which van you have, from the extensive range of familiar makes and models. It is possible to select from the colours provided and choose the size and specification that is required. As a customer you are spreading your monthly payments over a set term and as a result your monthly payments will be cheaper than renting. This is because the finance company knows how much money they will be earning from customers because of the commitment the customer has made.
The company has good bargaining power due to the volume of units that are negotiated each financial year, giving them the opportunity of passing lower prices to the customers. The end result is an improvement in the cash flow of the customers, because of the lower upfront costs. The customer can choose then to sell the vehicle when the contract agreement has finished. This allows them to keep some equity in their vehicle.
A definitie bonus is the ability to add your company details and logos to the vehicle and add extras like roof and internal rack systems.
Alternatively, with rental you can pay your monthly rental charge and have nothing to show for it at the end of the term. Financially in this economic recession, it doesn’t make much sense!!
To find out more, see how we can benefit your business with our unique van contract hire offers. Iveco Van Leasing and LDV Van Leasing are just some of the options out there to choose from.