How does van leasing work?

Van leasing is an increasingly popular alternative to the up-front purchase of a new van. When you lease a van, you're entering into a long-term rental agreement with the dealer. For a comparatively small down payment (typically three months' rental) followed by an agreed period of monthly payments, you get the benefit of a new vehicle without a large initial expense. Your rental is subject to certain conditions of use: you'll be expected to return the vehicle in good condition, and must stick within an agreed annual mileage.

Will I own the van after the lease period?

When you lease a van, you're hiring it for the agreed period. At the end of the lease period, it's handed back to the dealer with no further obligation on your part—leaving you free to lease or buy another vehicle.

What happens if I go over the mileage limit?

The monthly repayments on your van lease are based on depreciation, which increases as your van does more miles. Exceeding the mileage limit means you also exceed the expected depreciation of the vehicle's value, and that attracts an extra cost. Extra mileage charges can accumulate into high figures, so it's a good idea to negotiate an annual mileage allowance that realistically reflects your business.