Getting back to basics: The process of leasing a vehicle

For many businesses, the option of leasing a vehicle allows them to effectively manage their finances without having to worry about finding a large sum of money for a down payment on a new car. The process of leasing a vehicle may feel foreign to many though; after all, in the UK we are only recently taking up the idea whereas in the States it’s common for people and businesses to lease their cars.

vehicle leasingStep One

Find a reputable leasing company

It’s important, when it comes to van leasing, that you choose a reputable company that clearly lists any extra costs and works with you to ensure you are paying a monthly amount that you can afford.

Step Two

Work out what you can spend per month

Leasing requires you to pay a monthly fee to rent out your desired vehicle. However, this doesn’t include insuring, taxing and maintaining the car so you will also need to factor in these costs on top of the expense of the plan. Take a look at your budget and work out what you can afford to spare – it usually works out better to pay monthly than in one big installment and can improve a business’s cash flow.

Step Three

Accurately work out your mileage

The amount of miles you do will determine how much your leasing plan costs. The higher the mileage the higher the monthly amount, this is because the leasing company needs to take into account the depreciation of the car which speeds up when it travels more.

Step Four

Get a quote

Most leasing companies offer a quick quote service on their website, where you input what vehicle you need, your mileage and how long you want to lease for and how much this will come to. Once you find a quote you are happy with you can move on to setting up an agreement.

Step Five

Choose your vehicle

Decide which van you want then contact the leasing company to set up an agreement. You can do this online, call or visit in person. You will need to provide your financial details to set up the agreement and arrange a date for the delivery of your vehicle.

Step Six

Receive your vehicle and enjoy!

If the vehicle you opt for is in stock this will then be delivered to your home or place of business. Then you can enjoy driving it around! If you realise your mileage is creeping up faster than you initially thought, it would then just contact the leasing company and tweak the plan to suit this.

Step Seven

Return your vehicle

Once your leasing agreement is up, take your vehicle back to the leasing company but ensure it is in good condition – clean, with minimal scratches and dents or damage. It will be inspected by the company and if works needs doing you will receive an invoice.

You are free to walk away at this point, or you can set up another leasing agreement for another new model and the process starts all over again!