Van leasing is like paying for use of a vehicle, usually a truck, van or any other similar vehicle for a definite period of time. Most people often confuse van rental with van leasing. However, these are actually two completely different concepts. Van leasing simply means using it temporarily for some days or weeks while renting a van means paying on its use for more than twelve months. The short term rental enables one to use the van whenever he wants to without having to pay for a long term rental agreement, learn more here.
In case of monthly payments, some van lease companies also charge a fee on every month. This fee varies from company to company. Some of them include an additional fee for each day that you use your rented van, while some others require you to pay the entire amount as a flat rental fee. Before selecting a company for van leasing, make sure that you find out whether you will need to pay fees for using the van during the months when you are not using it. If this is the case, you may have to cancel your lease contract before starting to use the van.
There are advantages of hiring a new van over renting it. One advantage is that you will save money on your monthly payments because you will be using a brand new van instead of a previously owned one. However, there are certain things you must do in order to ensure that you are able to cancel your van leasing contract early.
First, you should find out the mileage limit of the company vehicles. The general rule of thumb is that the more miles per year that you want to drive, the higher the annual mileage limit of the vehicle. Some companies do not impose a mileage limit for their brand new vans, while others do. So, if you plan to drive more than 5000 miles per year, you should confirm from the company regarding the mileage limit.
Secondly, you should consider the total price of leasing versus the price of outright purchasing the vans. Leasing companies offer different prices for their vans, and the price will mainly depend on the duration of the lease. It also depends on the mileage you intend to cover. Check this leasing page out. For example, if you intend to cover 5000 miles or less in the ensuing three years, you may find that the monthly rental cost is lower than if you cover the same distance in the first three years but drive only half a percent of the miles.
Lastly, you should compare the monthly payments and other costs associated with van leasing and the upfront fee and deposit required by some companies. Most companies require an outright deposit when you sign up for the leasing contract. The cost of this deposit is typically higher than what you would have to pay for purchasing the vehicle. However, there are many pros and cons to leasing, so you should carefully weigh your options before deciding whether it is the right option for you. Read more here: https://en.wikipedia.org/wiki/Vehicle_leasing.