What is Van Finance Lease?

Vans are widely used for commercial as well as non commercial purposes, around the world; more so the former, than the latter. However, not every business owner, who may need to use a van, may be in a position to pay a large amount to buy it. In such a case they have a great alternative at hand, and that is to lease a van.

In rental also, there are a number of selections (or kinds of leasing) available; each with their own set of advantages as well as disadvantages. These include van finance lease, operating lease, contract hire, leveraged lease etc. 

The van finance lease is also known as the capital lease. Like any other type of lease, this also is a commercial, legal agreement; however works in a way, more or less, different from the rest of them. The two parties, i.e. the lessee and the leaser, in this particular agreement are the customer (or the borrower) and the finance company, respectively. The lessee will select the van that he requires, and the leaser will purchase it. For the term duration of the lease, the lessee will have the right to use that particular van; in lieu of which he is required to pay a series of instalments (or rentals) to the leaser. 

With these rentals, the leaser is able to recover a large portion, or even the entire cost of the van; and also earn an interest on it. Finally, at the end of the instalments, the lessee has the option to pay a minimal amount, and acquire the ownership of that van.   

How to hire a van and what are the requirements?

  • Many van leasing companies do not require you to go to their office for leasing a van. All you have to do is book the van of your choice o their website ad they will come deliver the van to you.

  • The companies which accept reservations on websites will also accept payment online. You can pay through their secure server with a credit card or whatever option they have.

  • You will need to have a driving license. Many companies even ask for a driving license that has been in use for over a year. This gives them the assurance that you have experience in driving the van.

  • When it comes to insurance there are two options. You can buy the insurance yourself or you may ask the leasing company to add it in the amount of the leasing. Both the ways are advantageous.

  • In most cases, no matter where you are, the van is delivered to you.

  • When the van is being handed over you may have to show the representative the credit card that you used for the payment of the van and the driving license as well. If there is waiting involved, you may even be asked to pay for the parking fee.

  • In case you want to discontinue the service you need to give a notice to the company.
Van Finance Lease