How Does Business Van Leasing Work?

Leasing a van means that you are allowed to use that van for hire or reward for a specific time. When you rent a van, you pay the starting premium and then instalments for the succeeding months. Usually, the contract of lease can go up to four years. When the contract ends, you hand the car back to the owner. If you want to renew your lease, you can make another contract or amend the previous contract. Van leasing is extremely popular because it offers a cheaper alternative. Loaning from a bank or through private financing can cost you a lot in terms of interests and other obligations. Today we will see how van leasing works.

Know This before Leasing

Before you try to lease a van you must know that there are different kinds of leasing contract which may have different terms and conditions. They may have different liabilities for both parties. Remember that you cannot end the contract before its date without paying a hefty amount.

Sometimes the monthly instalments are fixed but most of the time the monthly instalment will depend on the mileage. You also have the full responsibility of the van and duty to protect it from any kind of damage. If you do damage the van, you will have to pay for damages. Remember, leasing a van does not give you ownership. It is a sort of pledge where a person gives you the van to use it for your business.

Van Lease ContractsBCH or Business Contract Hire

BCH is the most common leasing contract that is great for many purposes. It is great for partnerships, traders and small companies. In a BCH you pay monthly throughout the year. After the contract ends, you return the vehicle to your financer. As soon as the contract ends, you are relieved of any obligations so far as the lease contract is concerned. In a BCH the rent you pay monthly will depend on how much you drive the van. You can also include the maintenance into the monthly instalments.

BCP or Business Purchase Contract

This type of contract is only designed for companies that have a registered VAT. Such businesses that want ownership of vehicles and don’t want to deal with the depreciation in their assets go for the Business purchase contract. Other things in the contract are similar except ownership. You lease a vehicle on payment of an initial sum and pay monthly instalments. Instalments depend on how much you use the vehicle. When the contract ends, the ownership of the vehicle passes to you and the van is yours. Remember that these types of contracts are rare.

BLP or Business Lease Purchase

BLP is a finance contract. This is a great option for those businesses that want to use a vehicle but don’t want to spend upfront money. This agreement has the option to allow the person to purchase the vehicle at the end of the contract.

Conclusion

Van leasing is a nice way to jump-start your business without investing too much. Some popular leasing agreements also allow you to own the vehicle when your lease finishes. Check here for best van leasing in Manchester.

Aaron Swift have Great ability in reading and interpreting architect drawings, blueprints and other forms of instructions.