Reasons to use van leasing rather than van rental
February 7th, 2010 | by blog |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?
The answer is quite simple. 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. 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. This results in lower up front costs which help improve the cash flow to the customer’s business. A customer also has the option to own or sell the vehicle at the end of the finance lease. This allows customers to earn some equity in the vehicle when it is sold.
There is the added bonus of being able to sign write your vehicle with your own company logo and add other extras such as roof racks and interior racking.
The alternative route is rental, whereby you pay your monthly rental and at the end you have nothing to show for it. 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 commercial vehicle leasing offers. Fiat Van Leasing and LDV Van Leasing are just some of the options out there to choose from.
