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Van Lease
Van finance options are many and varied – this guide will help steer you to the correct decision for your business

The different types of van finance

In this feature we look at the pros and cons of different types of van finance. These are:

  • Using cash
  • Contract hire
  • Finance lease
  • Lease purchase
  • Contract purchase

Take a read and see what sort of van finance is best for you and your business.

A LOT of thought usually goes into the selection process when van operators choose new vehicles, to make sure that the models chosen are exactly right for the job.

But when it comes to choosing a finance option, it appears that most just plump for whatever method they used last time.

Over 60% of van purchases are made with cash, meaning that buyers are missing out on the potential benefits of using a whole range of van finance alternatives.

Finance your van can be a confusing field, so here we outline the options available and point out their various benefits and drawbacks, so that you can choose the finance deal that’s right for you.

Outright purchase

As most people still use cash, lets start here:


Using a wad of used tenners to buy your vans, you have complete control of how they are used and when they are sold. You won’t have to keep them for a certain length of time and you won’t have to have to pay a load of damage charges if you abuse them.

If you see an opportunity, you can sell them when you like and after their first life all the major auction houses now have a free advice service so your vans will be presented in the best way to make the most money possible. Or you trade it in at your local dealer or used van centre.


The obvious drawback here is that you are going to have a huge pile of cash invested in your vans that could be used instead to develop your business. If, say, you run a significant business van operation of 50 vehicles costing £20,000 each, that’s a cool £1 million you have tied up.

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