Your Money Tips

Van and car leasing is currently helping many businesses to weather the current economic crisis. There are many businesses who have been forced to take a long hard look at their finances by the current economic downturn. Van leasing provides businesses, large and small, with the commercial vehicles that they need with payment methods that they can afford.

Van contract hire has become increasingly popular as businesses recognize the benefits of leasing over outright purchase. These advantages include:

• Fixed, known monthly payments enabling businesses to accurately forecast their finances;
• Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
• Maintenance and servicing can be included in the lease price which can save a lot of headaches;
• Leasing is a great way to lessen the impact of depreciation;
• The leasing company can often provide van finance at very competitive rates;
• No problems disposing of vehicles at the end of the lease period;
• There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.

Although van leasing provide some clear benefits to business there are some things that should be borne in mind. One important consideration is estimating the mileage. You should always check to find out if there are any penalties for exceeding the stipulated mileage and maybe look for an unlimited mileage contract.

Another important aspect of the contract to consider is exactly what is included in the maintenance agreement. Replacement tires and windscreens can be included in the van lease contract, but this is not always the case so its worth checking the details.

When researching van leasing options always gather a number of quotations for comparison and be certain to read the specifications and details carefully. Be certain that you are comparing the same models of vehicles with all of the same options.

Van leasing and pick up truck leasing are increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.