subject: Why Choosing To Lease Out A Van [print this page] So you have just started a business and you have a lot of money to spend and you need vans, for transportation etc. Or else, you have just decided to buy a van, and you have the required amount of money. Why not buy one? Well I am going to tell you why, because you have a better option.
Especially in the UK, VAT and taxes are very expensive, and there is no other way to avoid them, than leasing out vans. Leasing your van is far better than normal crediting, because it has various advantages.
But first lets explain what van leasing really is. It is not something complicated. It is as simple as paying to use a van, for a period of time. For example if you need a car, and you rent it for few days, you pay to use it. That's what van leasing is, but it must not be confused with van renting, because there is one major difference. If you need a van for a few days, then you must rent one. That is van renting. It is paying for a vehicle to use it, but just for a few days. In van leasing we have another situation. Van leasing is suitable only if you need a van usage for a longer period of time. That's why the lowest time period you can lease a van is a year.
So if you need a van for a longer period of time, you probably consider buying one and then selling it, but this is not a good option. In leasing a van if you are not VAT registered, then you will pay your VAT monthly, if you buy a van. But if you lease out a van from a company that is VAT registered, that means that the company pays the VAT for you, and it claims it back quarterly.
Also you have the opportunity to get your money back on VAT and taxes, which you don't have if you buy a van. Moreover in the period of usage of the van you can insist on taking on a new van from the company-dealer, on the same contract, that means that you could get your van renewed.
There is one negative side, though. At the end of your usage of the van, and at the end of your contract you are obliged to sell your vehicle. That means that you must sell the van you have been using, without having another option. However you are the dealer in this situation, because you choose whom to sell it to, and on what price.
In conclusion van leasing has many advantages over normal crediting and buying, but you must be careful, and before making a deal and a lease you should check all your other options and search for the lowest price available, because there are many dealers out there now, who lease out vans, and not every deal is as great as it sounds.
