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Is van leasing better than van rental?
By Performance Guru | February 7, 2010
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. If a customer took a lease, what would be the obvious advantages over a rental agreement?
It is very simple really. 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. You would be spreading your monthly payments over an agreed length of time, so the monthly payments will be cheaper than a similar rental term. It is possible because the finance company is aware how much money will be earnt from the customer, by the committment to the deal made by the customer.
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 optiion is there for the customer to own or to sell the van when the finance lease expires. A customer can then keep any equity that is earnt when the vehicle is put up for sale.
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.
Renting the vehicle is the alternative, but at the end of the deal when you have had enough, you will have nothing left to show. Surely in this current economical climate this doesn’t make financial sense!!
To find out more, see how we can benefit your business with our unique van contract hire offers. Fiat Van Leasing and LDV Van Leasing are just some of the options out there to choose from.
Topics: Automotive | No Comments »