Business van lease deals

For a deeper understanding of how vehicle leasing works, visit our Van Leasing Explained page.

You’ll find comprehensive information on the leasing process, its benefits, and everything you need to make an informed decision.

Benefits of leasing a van for business use

In recent years, van leasing for business purposes has grown increasingly popular across the UK. This surge is driven by the numerous advantages leasing provides over outright vehicle ownership. Leasing allows businesses to access brand-new vans equipped with the latest technology, all without the substantial upfront costs or financial risks associated with purchasing.

Here’s why leasing a van can be a smarter choice for your business:

• Low upfront costs

One of the most compelling benefits of a business van lease is the reduced initial expenditure. Unlike purchasing a new van, which often requires a significant upfront payment, leasing allows you to get on the road with just a small deposit—sometimes equivalent to just one month’s rental. This makes it easier to preserve working capital for other business needs.

• Affordable monthly payments

Leasing spreads the cost of the vehicle across manageable monthly payments, making it a more economical option than buying outright. Businesses can access the latest vans with advanced safety features and technology that might otherwise be out of reach.

• Regular upgrades

Leasing agreements typically run between two and five years, giving businesses the opportunity to regularly upgrade their fleet. When the lease ends, you can return the van and move into a new model—without the hassle or financial loss of selling your old vehicle.

• Predictable expenses

With a business lease, your monthly payments are fixed, helping you plan your cash flow and budget more efficiently.

• Protection against depreciation

New vans start to depreciate the moment they leave the showroom. If you buy, you bear this loss. With leasing, depreciation is factored into your monthly payments, meaning any drop in vehicle value is absorbed by the funder—not your business.

• Hassle-free vehicle returns

At the end of a lease, returning the vehicle is straightforward. There’s no need to advertise, negotiate with buyers, or visit dealerships. You simply hand back the van and, if desired, start a new lease on a replacement vehicle.

• Maintenance and warranty

All new leased vans come with a manufacturer’s warranty, usually lasting at least three years, covering mechanical faults. You only need to worry about routine servicing unless you opt for a comprehensive maintenance package, which can also be included in your lease.

Unsure what the differences are between maintenance and warranty? Read our blog: Maintenance vs Warranty?

• Road tax included

Leasing simplifies administrative tasks because vehicle tax is generally included in your monthly payments.

• Tax advantages

Leasing can offer significant tax benefits. Unlike purchasing, where VAT is paid upfront, businesses can reclaim a portion of VAT on their lease payments. Additionally, leasing is treated as an operating expense rather than a capital expenditure, enabling further tax efficiency.

Given these advantages, it’s no surprise that more business owners are choosing van leasing as a convenient, cost-effective way to keep their operations running smoothly. For a deeper look at whether leasing or buying is the better option for your business, check out our blog: 'Should you buy or lease a van for your business?'

What types of van lease agreements are available?

When it comes to business van leasing, several types of agreements are available. Selecting the right option depends on your business needs, cash flow, and long-term plans.

• Business Contract Hire (BCH)

Business Contract Hire is similar to personal leasing but designed for businesses. You choose the deposit, contract length, and annual mileage, then make fixed monthly payments. At the end of the lease, you return the vehicle with no further obligations. BCH is ideal for businesses that want to regularly update their fleet while avoiding upfront capital investment.

• Finance Lease

A Finance Lease is strictly for businesses. You make monthly payments based on the agreed deposit, mileage, and term. At the end of the lease, the vehicle must be sold to a third party, either by you or through the funder, for a small fee. Payments are often lower than BCH due to shared depreciation risk. Any surplus or shortfall from the sale affects your final position.

• Business Hire Purchase (BHP)

Hire Purchase allows businesses to gradually pay off a van through monthly instalments. Ownership transfers to you after completing all payments. Unlike BCH or Finance Lease, VAT must be paid upfront. This option offers flexibility while moving toward full ownership.

• Business Contract Purchase (BCP)

Similar to Hire Purchase, BCP combines monthly payments with a final balloon payment, after which ownership is transferred. Payments are typically lower during the term, and if you cannot make the balloon payment, you can return the vehicle. VAT is paid upfront in full.

• Business Lease Purchase (BLP)

Ideal for non-VAT-registered businesses, Lease Purchase involves monthly payments with a final lump sum to acquire the van. Maintenance is not included, making it a pure financing option without extra services.

New business van leasing

Leasing a van can be an excellent way for new businesses to access the vehicles they need without committing large amounts of capital upfront. However, because van leasing is considered a form of finance, most providers carry out a credit check before approving a lease. This can sometimes make it more challenging for newly incorporated companies or sole traders with little or no established credit history to secure a lease.

As specialists in business van leasing, we work closely with new businesses to provide practical and affordable solutions. To support your application, we may ask for a director’s guarantee, where the company director takes personal responsibility for the lease if the business is unable to meet payments. Additionally, we might request supporting documentation, such as a few months of business bank statements or draft company accounts, to demonstrate the financial viability of your business.

Our goal is to make the process straightforward and accessible, helping new businesses get on the road quickly with the right van to support their operations.

Read our recent blog: How to Lease a Van for Your Business Through a New Limited Company

Looking to lease a van? Find the right van lease deal with us!

Thanks to our long-standing relationships with manufacturers, dealerships, and trusted funding partners, we can provide cost-effective van leasing solutions for businesses of all sizes. Whether you’re a sole trader, a small start-up, or a large limited company, we help you find and finance the van that perfectly suits your operational needs.

With flexible lease terms, competitive rates, and a wide range of vehicles available, securing a van has never been easier. Start exploring our extensive selection of lease deals today and take the first step toward getting the perfect van for your business.

So why wait? Browse our wide range of lease deals and find the perfect van lease today!

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