Van Hire vs Van Leasing

What is better? Van hire or Van leasing? Before making any decision on the matter, it is important that you understand the differences between them and which of the two would suit your requirements. Let’s take a look at your options:

Van leasing

Van leasing is very similar to car leasing, where you pay a fixed monthly cost for the use of the van. The advantages of this arrangement are:

• Reduced capital – You only pay a fixed monthly fee.
• Ownership – Depending on the contract, you may be offered the chance to keep the van at the end of the contract.
• No depreciation risks – The leasing company owns the vehicle for the duration of the contract, and will continue to do so if you choose not to buy it outright at the end of the period.
• Upgrade – At the end of your contract you can always take a new one out on a newer model.
• Maintenance – Some companies offer regular maintenance in their contracts.

The disadvantages of taking out a leasing contract for a van are:

• Mileage – The cost of leasing a van is based on the anticipated mileage that the vehicle will undertake while in your possession. You should think about this before signing any agreement.
• Tied in – Once you have signed the agreement you are bound to its terms. If you feel that you may not be able to keep up with the payments, then purchasing a second hand vehicle outright may be a better solution.

Van Hire

Van hire is a temporary rental agreement that allows you to use a van for a limited period of time for a specific purpose, e.g. a house move. The advantages of this arrangement are:

• Convenient – No long term contract, just use the van for what you need it for and return it.
• Size – Choose from several different size vans to suit your needs.
• Expense – No need to invest in a vehicle if you only need it for a few trips.

The disadvantages of a temporary rental agreement are:

• Short term – This is not suitable if you are looking to have a van at your regular disposal.
• Inexpensive – There are plenty of van hire providers out there, giving you plenty of opportunities to find a good deal.

So to sum up, your ideal type of van rental is dependent on your needs and circumstances. Are you a small businessman who requires a reliable vehicle for everyday usage? Or are you someone who needs to move equipment or belongings on a one-off basis? If the former is true, then van leasing is for you. If the latter applies then you should consider short term van hire.