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Van Leasing, Finance or Buying – Which Is Best For You?

August 23rd, 2023

Nothing beats the joy of driving home a new vehicle, whether it’s a second-hand, electric or completely untouched motor. Switching things up with a fresh van can improve your driving experience and provide you with all the latest dashboard technology and safety features, guaranteed to make your journey more comfortable.

It is important to be able to access the best van for your business, especially if your work relies on long-distance travel or the regular transportation of goods. Your van is at the heart of everything you do, where it facilitates effective communication and everyday logistics. A branded vehicle can also help to familiarise the public with your company logo and contact details, helping to attract more business whilst out on the road.

As such, you don’t want financial limitations to stand in the way of finding the right model for the job. Therefore it is vital for prospective buyers to properly consider which financing and purchase options are most suitable. Leasing or financing a van can help to make the new vehicle process more affordable, where it is also possible to buy a van outright. Read on to find out more about these different options, and the various benefits of each.


A popular way of facilitating the procurement of a new vehicle is to choose a van lease deal. This is a form of long-term rental contract, where monthly payments are made to secure the vehicle, which is then returned to the dealership at the end of a designated period.

Also known as Personal Contract Hire (PCH), this option typically includes various caveats, such as mileage limits. Mileage limits can vary depending on the contract type, where they tend to range from 5000 to 30,000 miles. You may be charged an additional fee if you exceed the limit on your contract.

Further to this, additional charges could be enforced if damage is caused to the vehicle beyond reasonable wear and tear. Details of this and the mileage agreement will be listed before the contract is signed.

Your monthly payments for the lease are calculated based on your mileage agreement and how much you’re able to pay upfront – the bigger the initial payment, the lower the monthly cost. Lease costs also vary depending on how long your contract is for, where this can vary from a few months to long term van leases of four years. Leasing is typically only available for new vehicles, where different financing options are available for used models.

Benefits Of Leasing

There are numerous benefits to leasing a van compared to other financing options. One of the most important advantages is that it provides you with a short term commitment, where you can trade in for a brand new vehicle at the end of your contract, without the hassle of selling. Leasing also means low upfront costs, where you don’t have to worry about finding a large sum of money to secure a new vehicle.

Other benefits of leasing are that lots of additional vehicle costs are usually included in your monthly payments. Road tax, breakdown cover and a manufacturer’s warranty tend to be included as standard, which may not be the case with other financing options or if you’re purchasing a used vehicle.

Drawbacks Of Leasing

Disadvantages of leasing a van include the potential charges you could accrue for exceeding your mileage limit or for causing excessive damage to the vehicle. In addition to this, you do not own the vehicle at the end of your lease contract, whilst other monthly payment plans do result in ownership after a set period of time. There is also the risk of incurring a charge if you need to terminate your lease at any point before the agreed upon time has elapsed.


As an alternative to leasing, finance presents an array of options to secure a vehicle with minimal upfront costs. Like leasing, these options can include mileage limits, as well as varying deposits and contract lengths. A key type of vehicle financing is a Hire Purchase agreement, which is when the cost of the van is split between an upfront payment and monthly instalments. Once these payments are complete, you will have paid for the vehicle, although this process also covers interest costs and does not account for the car’s depreciation in value over time.

An alternative to this is a Personal Contract Purchase (PCP), where the monthly payments you make are designed to cover part of the vehicle’s value, taking into account the value it loses over time. Like a lease, you can then return the vehicle at the end of the contract, but with a PCP, you’re also given the option to pay the remaining value of the van to secure personal ownership.

A further financing option is known as a Lease Purchase, where this is typically used for van purchases. This is available for used vehicles, where monthly instalments cover part of the van’s value. A Lease Purchase differs in that it requires you to make a final mandatory payment that allows you to own the vehicle.

Benefits Of Financing

Prospective van owners may look to financing options over lease contracts, as these are available for both new and used cars. As such, finance plans are generally cheaper, where they also tend to offer lower interest rates than lease options.

For vans in particular, Lease Purchase agreements are generally cheaper than Hire Purchases and more flexible than a PCP, as both the monthly cost and final sum are open to adjustments. It is also important for some van drivers to own their vehicle, where this may be preferred over taking out a new lease at the end of each contract.

Drawbacks Of Financing

Some of the drawbacks of a financing contract are similar to those for a van lease agreement, where you can end up overpaying for your vehicle, and not owning it at the end of the payment period. You can also still incur mileage and damage charges, as well as early cancellation fees. In addition to this, a Lease Purchase agreement can tie you into vehicle ownership at the end of your contract, where you may wish to change your mind about the van after the payment period has elapsed.

Buying Outright

A more traditional option for purchasing your vehicle is to buy it outright, where you put forward the full financial sum for the van in one payment, giving you complete ownership from the outset.

Usually dealerships will prefer a card payment when purchasing your vehicle, where cash deposits are only suitable for low cost and second-hand models.

Benefits Of Outright Purchasing

There are lots of benefits to buying a new vehicle outright, where your purchase can include additional warranty and breakdown cover, as with a lease agreement. This can work out as the cheapest option overall as you won’t have to pay additional interest rates or charges. You’re also free to sell the van at any time without complications.

Drawbacks Of Outright Purchasing

The drawbacks of this option come from the fact that you’re making a permanent, long-term investment. As such, your vehicle will depreciate in value over time, and your choice of model is limited to the funds available to you at the time of purchase. You’re also burdened with the hassle of selling and buying a new vehicle, where this can be made easier through a leasing agreement or other financing plans.

Van Sales UK: Long Term Van Lease, Crew Van Leasing & Much More

At Van Sales UK, we offer a broad variety of financing options to help you secure your dream vehicle. Our finance plans can cover transit van hire, crew van leasing and hire purchase options, where we can also offer specialist advice on the financing of van fleets.

In addition to this, we can offer outright purchasing deals to give you complete ownership of your new vehicle. Contact us today to learn more about our comprehensive range of financing options, or browse our current selection of new, used and electric vans today.


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