Is leasing a van cheaper than buying new?

posted in: Van Hire

The economics of motoring have changed…
 
Time was that if you needed a van long term you bought, and if you needed one short term you rented. There was a mile of difference in costs between them, and few other options to speak of.
 
How times change. Leasing a van for the long term (say, on a 3 or 4 year deal) is invariably cheaper than any finance options in which you become the outright owner.
 
TJS Short Wheel Base Van
 
But what if you want a van for that awkward period that’s shorter than a full-blown contract hire arrangement but considerably longer than your standard rental? If you want to lease a van for 1 year, for example, is it possible to do it cheaper than buying a new van?
 
We’d say yes. And let’s ignore for a moment the fact that, on an average 24,000 mile per year van, your claimable mileage allowance payments would total £8,000. What we’re really interested in is depreciation.
 
Let’s take an average Ford Transit, list price about £27,000. In the first year any van depreciates between 25% and 40%, meaning that by the end of year one your vehicle is worth up to £9,000 less than when you drove it off the forecourt.
 
That’s far more than you’ll pay to lease the van over the same period – and when you hand it back, you start again with a brand new van. And your road tax, maintenance and servicing, roadside assistance et al are all included.
 
With ownership, unless you get a deal, all of that is an extra. And, of course, you start every year with the same van – it’ll just be one year older.
 
Looking at a more flexible, better value way of giving your business the vehicles it needs? Talk to us about leasing a van from TJS.