Introduction

Van Leasing or van rental is a huge business world wide with many different people from big businesses, to small companies to individuals taking part in it.  It literally means the renting of a van for a fixed or unspecified period of time.

Advantages

Van leasing offers advantages for both the leaser and the lessee.  It is usually easier to qualify for a van lease than for a loan on a van and the payments are often cheaper when renting than they would be for a van loan.  Some people and companies prefer to rent as they can simply return a van for a newer or better model once their lease has expired.  This enables the lessee to have a newer, more reliable van every time their lease expires without the need for reselling of the older vehicle.

A huge advantage for the leaser is that they are able to generate money through a vehicle which they already own and will be able to sell at a later date or continue leasing.  Many people who rent vans will be repeat customers if the service is good; and as a leased vehicle is usually used for less time than one bought outright the leaser is almost guaranteed repeat trade at a fast rate.  Some leasers will also offer the lessee the option to buy the van at the end of the contract, which brings in a large sum of money and also the option to buy a newer van for the business.

Conditions

Almost certainly when leasing a van the leaser will need to show their driving license, and only those appearing on the contract will legally be able to drive the vehicle.  There may be an option for insurance in case the lessee does not have insurance covering rental vehicles.  Conditions may also include a limit of miles that a van can be drove in the contract, usually around 15,000 miles per year of the lease.  Some companies may also insist on a certain drop off point and a full tank of petrol on the return of the van, failure to agree to the conditions can result in a large fine for the lessee.

Restrictions

There are often restrictions that a person has when they lease a van.  Some companies may also require a bond which will be refunded once the van is returned in its original state, or kept if the van is not returned in order.  This may be in the form of cash though it can also be in the form of a credit card authorisation.  The lessee is usually responsible for any traffic violations that they receive whilst renting the van and this can be anything from speeding, to theft, to needing the van towed after a breakdown, to an accident.

Conclusion

Van leasing is a huge business that is set to continue growing especially in the current economic climate.  With people saving what spare money they have it can seem more cost effective to rent a van rather than buy one outright.  This is a huge advantage for the leasers and also an advantage for the lessees.