So you need a new van and you price up all the varieties that fit your spec in terms of load capability regarding weight and size.  And based on the belief that a van is a van irrespective of which manufacturer makes it (very different to the emotional purchasing decision when it’s your car) you order the cheapest.

Or is it that simple?  Actually no it isn’t or at least it shouldn’t be.  The following factors should be taken into account.

  1. What’s the service interval?  Most vans will go for around 25,000 miles before needing servicing but some, such as the Ford Transit Custom will manage 30,000 so that means fewer days off the road and more days making money
  2. What are the expected servicing costs?  Even if you don’t plan to have maintenance included in your lease contract, get a quote anyway; it’s quite telling because it’s based on the predicted costs over the term and expected mileage and can turn the cheapest van into the most expensive
  3. How economical is the van?  If your mileage is big then fuel costs may far outweigh the leasing charges.  The Renault Trafic 120 BHP van costs more than the 115 version but it’s twin turbo and 10% more efficient based on official figures.

I’ve been quoting a company this week that needs a van that will do around 60,000 miles per year and crunching the numbers (all of them not just the basic lease rate) shows that the cheapest (to lease) van becomes the most expensive by £50 per month when factoring servicing and tyre costs and will need one extra service over the life of the agreement and an extra day off the road but interestingly it’s officially about 5 MPG better than the other model.  That equates to, at current diesel prices, around £1000 per year, and means that the cheapest van really is the cheapest in this case at least.

But every situation is different and it’s only by looking beyond the headline figures that the true picture emerges.  Of course, a good leasing specialist will ask the right questions and provide a recommendation that suits the circumstances.

If you’d like to know more about how leasing works and how it could work for you, please get in touch.  If you think others would be interested in this post, please share it.

Matt Spivey

Vehicle Leasing Neva Consultants
Left the corporate world in 2013 after ten years at Vodafone and now specialising in car and van leasing with Neva Consultants.Serial networker and member of BNI Wakefield Wealthbuilders, 4Networking and The TradesHub Academy South Yorkshire.

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