Van Lease
A van lease is an agreement between a leaser (the owner of a van) and a lessee (a customer interested in renting a van). There are now numerous websites offering the customer lots of options on what type of van they want, how long they want to rent it for and competitive prices to suit each individual. This is a business that is booming in the current economic struggle in most of Europe and America.
The Lease
Whether you are a first time buyer or a company searching for an upgrade there are leases available for everyone, and to suit every individual. Vans can range from the small pick up truck, to a minibus, to a refrigerated truck to a dropsied tipper, and prices are increasingly competitive with numerous new companies appearing.
At the start of the lease the lessee will usually be charged for at least the first rental month up front, a security deposit or bond which will be refunded after the lease and also any destination charges. For the duration of the lease the lessee is responsible for paying their monthly rental payments on time and also any other outgoings such as maintenance expenses, insurance and any fees for overdue payment. At the close of the lease if the lessee does not wish to buy the van they may be asked to pay a disposition fee and then any charges for breaking terms of their contract such as excess miles or excess wear.
Restrictions
- Most leases limit the number of miles the lessee can drive in a year. This is usually around 12-15,000 miles although this can be sometimes be extended before the lease is signed for an extra cost. Failure to keep within the mile limitations can result in extra costs when the van is handed back, usually at round 5p per mile.
- If the lessee wishes to return the van at an earlier date than originally agreed this can result in termination charges.
- Most leases limit wear to the van during the lease term. If wear does occur the lessee will usually be required to pay for any charges after return of the vehicle.
- The lessee is responsible for the cost of any traffic tickets, accidents, violations and towing of the vehicle whilst they are renting it.
Lessee Rights
- When you rent a van you are entitled to use if for the number of months and miles stated in your lease.
- You are entitled to buy the vehicle at the end of your contract if you have this as an option in the original lease.
- You are entitled to take advantage of any warranties, recalls or other services that apply to the van whilst you are leasing it.
- Most importantly at the end of your contract you are entitled to turn the van in, pay any end of lease fees or charges and walk away.
Conclusion
There are numerous van leasing companies available in every country and all claim to cater to each business or individuals needs. Many people lease vans every year and if you check your lease carefully before signing it can be a cost effective way to drive.