Top 5 Concerns when leasing a van
Leasing a van can feel like a bit of a minefield. Luckily, we’re here to help! There are many factors to take into consideration and so many options that you can choose. Everyone has a unique circumstance and so this is the core reason so many options are available. With so much choice there is bound to be a lease van agreement to suit you.
There are different types of Lease agreements that you can choose from as well as different payment plans. Each financial provider offers different variants so it is worthwhile using a lease broker or checking out a few a providers before making your decision.
In this article, we’ll go through the top 5 concerns when leasing a van. Let’s see if we can answer some of those burning questions for you.
What Happens if the Van that I am leasing is written off from an accident?
If there was a case of a crash in your leased vehicle, then you can claim back on your insurance. You are required to have fully comprehensive insurance cover throughout the whole of the lease period. So in this instance, the insurance company would contact the financial provider and notify them of the cost of the damage. It will be up to the provider who will then check the worth of the van on the current market. If there is any difference between the value of the van in the current market and the pay-out from the insurance then you will be liable for this difference. Some financial providers offer ‘Gap Insurance’ which bridges the gap between the quotes and reduces your cost liability in these circumstances.
Like normal insurance companies, if you are at fault for the crash, you will have to pay the excess set up on your insurance.
Are you allowed to hand a lease van back before the end of the contract?
Early termination is really at the discretion of the financial provider. This is not available on all contracts so please be careful to check before committing. Some providers might offer a “get out” clause or an early release. Again, this service will likely be chargeable. This might not be specifically mentioned in any leasing contract, or it may be hidden in the fine print so always ask the question.
Depending on your circumstances; if you are looking to sell the van or hand it back to the company towards the end of your lease then the financial provider will look at the worth of the van and either ask you to sell the van for its worth or ask you to pay the difference. If you are looking to keep the van then again the provider will look at the net worth of the van and you will have to pay the outstanding amount left.
Does my lease van come with insurance, or do I have to insure separately?
The insurance doesn’t automatically come with the lease. As long as you have fully comprehensive cover insurance and you can provide evidence of this when you take delivery of your van, then you should be able to insure your van with any reputable Insurance company. Each insurance provider will offer different variants of cover so be sure to read the fine print.
Some financial providers will offer their own van insurance. If you do decide to purchase the insurance and tax through the financial provider then this should all be included within your regular monthly instalments. If there is any doubt, read the fine print of the terms and conditions and ask the provider directly.
Can you modify a leased van, if at the end of the contract you hand the van back to its original state?
With most finance providers the answer to this is yes! Some providers actually offer a service to modify the van for you for a one-off price. They can add ply ling to the walls or shelves, rubber line the floor in the back etc. If you do decide to opt for a modification package by the financier, then most of them will not penalise you on slight damage when installing it.
Some providers instead offer recommendations for sub-contractors who can install the modifications for you. In this case, you would have to make sure that the van is returned in its original state at the end of your contract.
If you would rather make the modifications yourself, then you would have to be ultra careful. The provider will check the van thoroughly on return to make sure that there has been no damage caused. If you do not reverse the modification that you have placed in the van, it is the right of the finance provider to charge you for the reversal and repair of any damaged that has occurred.
Can you get a lease contract for a new driver?
The overall answer would be yes. If you hold a full UK driving license then you can be eligible for a contract. The potential stumbling block is usually with affordability and credit checks. If you’re a new driver looking to obtain a leased van and you don;t have a strong credit file yet then the potential negative here is that the contract price might be more expensive. Insurance for a new driver is expensive in general. So be sure to research the combined contract and insurance price to ensure you can meet the payments. The best advice would be to investigate with a few finance providers as well as the insurance companies to see what the overall outgoing together will be. This might be excessively higher than you might imagine and realise that you actually cannot afford it.
The best advice given to anyone who is seeking to get a lease contract is to research. Look at the different types of vans out on the market, and what type of van you are after. What job do you need the van for? Do you need to modify the van once you have got it? Ask the Insurance companies the monthly instalments you would have to pay on fully comprehensive. Enquire with a multitude of finance providers. There is no harm in healthy competition. Or use a lease broker to do the hard work for you.
