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zesty

  • Posts: 2454
If you lease your van, how much are you paying?
« on: February 22, 2020, 11:46:40 am »
Thinking about leasing my next transit custom, my current transit custom was bought outright (second hand), but has just passed the 100k miles.

Might sell it, then lease a brand new transit custom from Vanarama. The prices seem very reasonable on the website, but in the real world, what sort of monthly payment are you making, and what’s the mileage allowance? Just want a rough idea.


KS Cleaning

  • Posts: 3955
Re: If you lease your van, how much are you paying?
« Reply #1 on: February 22, 2020, 12:08:03 pm »
Thinking about leasing my next transit custom, my current transit custom was bought outright (second hand), but has just passed the 100k miles.

Might sell it, then lease a brand new transit custom from Vanarama. The prices seem very reasonable on the website, but in the real world, what sort of monthly payment are you making, and what’s the mileage allowance? Just want a rough idea.
Sorry can’t help with leasing info but if I were you I would be looking at taking Ford finance. Your van will probably give you the 30% deposit required to qualify for 0% finance. I know 0% finance is usually some kind of sales gimmick and you end up paying list price, but with the Custom you will get a heavy discount on the list price along with 0%. 

dazmond

  • Posts: 23968
Re: If you lease your van, how much are you paying?
« Reply #2 on: February 22, 2020, 12:33:22 pm »
Thinking about leasing my next transit custom, my current transit custom was bought outright (second hand), but has just passed the 100k miles.

Might sell it, then lease a brand new transit custom from Vanarama. The prices seem very reasonable on the website, but in the real world, what sort of monthly payment are you making, and what’s the mileage allowance? Just want a rough idea.

mines a business finance lease so no set mileage and an option to pay the balloon at the end of the 5 year lease(£7k)and keep the van.

i pay £215.96 a month including VAT......if i pay the balloon at the end it will cost me over £20k......i had my van on my drive within 3 weeks of ordering it then a few weeks later they took 3 months rental as a deposit.....

what i didnt realise was they charge you VAT on the RFL....this year it was £320 for the year!had my connect for 3 years now(ive done just over 10,000 miles in it now)....

no maintenance schedule with mine...i get that done myself.....i lease both my van and car with vanarama.... :)
price higher/work harder!

deeege

  • Posts: 5008
Re: If you lease your van, how much are you paying?
« Reply #3 on: February 22, 2020, 01:08:15 pm »
I pay £249pm incl VAT for my Berlingo. 3 year lease with 15k mileage allowance. No option to buy the van outright at the end of the lease.

Road tax is included, I just need to pay for a 1st year minor service (£100) and 2nd year full service.

I like to drive a new van and the expense is tax deductible, it suits me fine.
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

zesty

  • Posts: 2454
Re: If you lease your van, how much are you paying?
« Reply #4 on: February 22, 2020, 01:22:48 pm »
Interesting replies.

KS, good point, I’ll look into that as an option.

Daz, what in the world is RFL?

Thanks for info Deegee.

dazmond

  • Posts: 23968
Re: If you lease your van, how much are you paying?
« Reply #5 on: February 22, 2020, 01:29:28 pm »
Interesting replies.

KS, good point, I’ll look into that as an option.

Daz, what in the world is RFL?

Thanks for info Deegee.

RFL......road fund licence
price higher/work harder!

zesty

  • Posts: 2454
Re: If you lease your van, how much are you paying?
« Reply #6 on: February 22, 2020, 02:18:08 pm »
Interesting replies.

KS, good point, I’ll look into that as an option.

Daz, what in the world is RFL?

Thanks for info Deegee.

RFL......road fund licence

Never heard of it mate!

Stephen burton

  • Posts: 317
Re: If you lease your van, how much are you paying?
« Reply #7 on: February 22, 2020, 02:28:18 pm »
I pay £280 including vat and that includes maintenance and servicing, I paid 1600 upfront it’s 3 years and 9000 a year mileage and that is for a top spec custom

Crystal-clear

  • Posts: 3029
Re: If you lease your van, how much are you paying?
« Reply #8 on: February 22, 2020, 02:53:41 pm »
In reality after 3 years how much money have you spent including upfront payments and deductions at the end due to minor damage? Let's face it you are likely to have a few stone chips on the bumper at least.
I like the idea of it but when I ad the numbers up it puts me off up front £1,600 then £280 a month 3 years limited mileage.
I make it £11680 tax deductible I understand but then you hand the van back left with nothing and start again   ???

deeege

  • Posts: 5008
Re: If you lease your van, how much are you paying?
« Reply #9 on: February 22, 2020, 03:23:06 pm »
In reality after 3 years how much money have you spent including upfront payments and deductions at the end due to minor damage? Let's face it you are likely to have a few stone chips on the bumper at least.
I like the idea of it but when I ad the numbers up it puts me off up front £1,600 then £280 a month 3 years limited mileage.
I make it £11680 tax deductible I understand but then you hand the van back left with nothing and start again   ???

I pay 0 upfront as Citroen give £500 towards the next lease for sticking with them. I just structure the lease so the upfront payment is around £500 so there’s basically no deposit to pay.

I paid a local body shop £90 to take some lights scratches and a couple pings out of it before return. The inspection picked up on a small knock in the bumper and charged I think £45 but I appeal this and havnt heard back.

£10k over 3 years is about right for what I pay and yes it’s all tax deductible.

There are definitely more cost effective ways to do this but for minimal fuss and to always have a van that’s within warranty and brand new this suits me perfect.

I do around 14k miles a year in mine so knowing my van is going to start and get me through the days work is more important to me than saving a few quid and running old vans.
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

Spruce

  • Posts: 8462
Re: If you lease your van, how much are you paying?
« Reply #10 on: February 22, 2020, 03:51:02 pm »
In reality after 3 years how much money have you spent including upfront payments and deductions at the end due to minor damage? Let's face it you are likely to have a few stone chips on the bumper at least.
I like the idea of it but when I ad the numbers up it puts me off up front £1,600 then £280 a month 3 years limited mileage.
I make it £11680 tax deductible I understand but then you hand the van back left with nothing and start again   ???

My take on this having been in the commercial vehicle trade;

Both the motor manufacturers and finance houses love that people have become more accepting of renting or leasing a new vehicle. Once a buyer is on the leasing treadmill is more difficult to get off than to continue with a new contract and new vehicle.

 A customer is less likely to finish a contract and replace their van with a used one because the future commitment is similar for both - I would rather drive the latest model than an old 5 year old van that someone else has had on lease for the same deposit and monthly repayment.

TBH a new vehicle will always depreciate not matter how its financed.

Leasing is basically financing depreciation with an interest and handling charge levied by the finance house. They also want to sell the van at the end of the contract for a profit.

One thing that's important to consider is the implications about what happens if you have to give up the contract half way through for whatever reason.
There is nothing stopping you selling a vehicle under HP finance as long as its finance 'lean' has been cleared before the vehicle is transferred to the new owner. This is usually more in your control than leasing.  With leasing there will be all sorts of financial implications and financial penalties imposed that aren't in your control.  This is something which is never spoken about.

Lets take Stephen Burton's van as an example. I don't know how much a top spec Custom is but lets say £20,000.
Stephen has owned his van for 6 months and now finds himself unable to work for whatever reason. To date he has paid £1600 deposit and £1680 in rental payments.
His van has 4000 miles on it and would possibly be worth £12k as a dealer buyback. (That dealer will try to put £1500 - £2000 profit onto the van when selling it to a new owner. )  Already the finance house has a shortfall of £4750 which they have to account for from the leasor. (Dealers love these situations as they become vultures and take advantage of someone else's misfortune when buying vehicles such as this.)

I used to deal with a couple of these leasing houses who had their own internal used vehicle sales departments which had their own financial targets to meet as any used vehicle dealership would have. Anyone could buy used vehicles from them and they would use their own finance house to provide finance. They made a fortune out of some vehicles.
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

Stephen burton

  • Posts: 317
Re: If you lease your van, how much are you paying?
« Reply #11 on: February 22, 2020, 04:25:06 pm »
I had such a bad experience with a recent van it went  into a garage about 5-6 times and I lost so much time and money until it was fixed then I lost all confidence in the vehicle it was a 64 plate custom so I sold it and didn’t know what to do, I was never going to pay 26,000 for a new van, ideally I want to change every 3-4, this is my first lease van and honestly it’s the best thing I have done, 11,600 is the rough cost for 3 years after claiming the vat back it’s around 9.5k so it’s £60 a week £12 a day that’s one small job to cover my van and stress free motoring, don’t get me wrong I don’t like paying out the money to not get it back but it’s just another weekly cost and let’s be honest as windows cleaners we don’t have to many over heads when your a one man band

NWH

  • Posts: 16952
Re: If you lease your van, how much are you paying?
« Reply #12 on: February 22, 2020, 04:33:46 pm »
That van is costing you 20 k all in all did you say Daz


Status Check

Re: If you lease your van, how much are you paying?
« Reply #13 on: February 22, 2020, 04:49:48 pm »
Thinking about leasing my next transit custom, my current transit custom was bought outright (second hand), but has just passed the 100k miles.

Might sell it, then lease a brand new transit custom from Vanarama. The prices seem very reasonable on the website, but in the real world, what sort of monthly payment are you making, and what’s the mileage allowance? Just want a rough idea.

Transit Custom Limited.
10k per year
3 months upfront depo.
£260.00 per month inc vat
Vat reclaim £42.00
Road fund license £20.00
Cost per month £198.00 fully tax deductable.
Cheap as chips.
What don't I like?
Stripping down the van after the 3 years and making it good again.
If your putting an employee in a lease van then don't bother, they will wreck it.

dazmond

  • Posts: 23968
Re: If you lease your van, how much are you paying?
« Reply #14 on: February 22, 2020, 04:50:56 pm »
In reality after 3 years how much money have you spent including upfront payments and deductions at the end due to minor damage? Let's face it you are likely to have a few stone chips on the bumper at least.
I like the idea of it but when I ad the numbers up it puts me off up front £1,600 then £280 a month 3 years limited mileage.
I make it £11680 tax deductible I understand but then you hand the van back left with nothing and start again   ???

My take on this having been in the commercial vehicle trade;

Both the motor manufacturers and finance houses love that people have become more accepting of renting or leasing a new vehicle. Once a buyer is on the leasing treadmill is more difficult to get off than to continue with a new contract and new vehicle.

 A customer is less likely to finish a contract and replace their van with a used one because the future commitment is similar for both - I would rather drive the latest model than an old 5 year old van that someone else has had on lease for the same deposit and monthly repayment.

TBH a new vehicle will always depreciate not matter how its financed.

Leasing is basically financing depreciation with an interest and handling charge levied by the finance house. They also want to sell the van at the end of the contract for a profit.

One thing that's important to consider is the implications about what happens if you have to give up the contract half way through for whatever reason.
There is nothing stopping you selling a vehicle under HP finance as long as its finance 'lean' has been cleared before the vehicle is transferred to the new owner. This is usually more in your control than leasing.  With leasing there will be all sorts of financial implications and financial penalties imposed that aren't in your control.  This is something which is never spoken about.

Lets take Stephen Burton's van as an example. I don't know how much a top spec Custom is but lets say £20,000.
Stephen has owned his van for 6 months and now finds himself unable to work for whatever reason. To date he has paid £1600 deposit and £1680 in rental payments.
His van has 4000 miles on it and would possibly be worth £12k as a dealer buyback. (That dealer will try to put £1500 - £2000 profit onto the van when selling it to a new owner. )  Already the finance house has a shortfall of £4750 which they have to account for from the leasor. (Dealers love these situations as they become vultures and take advantage of someone else's misfortune when buying vehicles such as this.)

I used to deal with a couple of these leasing houses who had their own internal used vehicle sales departments which had their own financial targets to meet as any used vehicle dealership would have. Anyone could buy used vehicles from them and they would use their own finance house to provide finance. They made a fortune out of some vehicles.

That's why its important to take out GAP insurance on a new vehicle(at least for the first 3 years)...I always do anyway.....
price higher/work harder!

dazmond

  • Posts: 23968
Re: If you lease your van, how much are you paying?
« Reply #15 on: February 22, 2020, 04:52:34 pm »
Interesting replies.

KS, good point, I’ll look into that as an option.

Daz, what in the world is RFL?

Thanks for info Deegee.

RFL......road fund licence

Never heard of it mate!


Er.......RFL.......road tax....... ::)roll ;D
price higher/work harder!

dazmond

  • Posts: 23968
Re: If you lease your van, how much are you paying?
« Reply #16 on: February 22, 2020, 04:56:02 pm »
That van is costing you 20 k all in all did you say Daz

If I pay the balloon and keep it...yes(which I probably will as itll only have 15,000 miles on the clock after 5 years).itll have at least another 5 years life in it before I sell it.
price higher/work harder!

Spruce

  • Posts: 8462
Re: If you lease your van, how much are you paying?
« Reply #17 on: February 22, 2020, 05:19:20 pm »
In reality after 3 years how much money have you spent including upfront payments and deductions at the end due to minor damage? Let's face it you are likely to have a few stone chips on the bumper at least.
I like the idea of it but when I ad the numbers up it puts me off up front £1,600 then £280 a month 3 years limited mileage.
I make it £11680 tax deductible I understand but then you hand the van back left with nothing and start again   ???

My take on this having been in the commercial vehicle trade;

Both the motor manufacturers and finance houses love that people have become more accepting of renting or leasing a new vehicle. Once a buyer is on the leasing treadmill is more difficult to get off than to continue with a new contract and new vehicle.

 A customer is less likely to finish a contract and replace their van with a used one because the future commitment is similar for both - I would rather drive the latest model than an old 5 year old van that someone else has had on lease for the same deposit and monthly repayment.

TBH a new vehicle will always depreciate not matter how its financed.

Leasing is basically financing depreciation with an interest and handling charge levied by the finance house. They also want to sell the van at the end of the contract for a profit.

One thing that's important to consider is the implications about what happens if you have to give up the contract half way through for whatever reason.
There is nothing stopping you selling a vehicle under HP finance as long as its finance 'lean' has been cleared before the vehicle is transferred to the new owner. This is usually more in your control than leasing.  With leasing there will be all sorts of financial implications and financial penalties imposed that aren't in your control.  This is something which is never spoken about.

Lets take Stephen Burton's van as an example. I don't know how much a top spec Custom is but lets say £20,000.
Stephen has owned his van for 6 months and now finds himself unable to work for whatever reason. To date he has paid £1600 deposit and £1680 in rental payments.
His van has 4000 miles on it and would possibly be worth £12k as a dealer buyback. (That dealer will try to put £1500 - £2000 profit onto the van when selling it to a new owner. )  Already the finance house has a shortfall of £4750 which they have to account for from the leasor. (Dealers love these situations as they become vultures and take advantage of someone else's misfortune when buying vehicles such as this.)

I used to deal with a couple of these leasing houses who had their own internal used vehicle sales departments which had their own financial targets to meet as any used vehicle dealership would have. Anyone could buy used vehicles from them and they would use their own finance house to provide finance. They made a fortune out of some vehicles.

That's why its important to take out GAP insurance on a new vehicle(at least for the first 3 years)...I always do anyway.....

Definitely right; but that only helps you in an accident.
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

Spruce

  • Posts: 8462
Re: If you lease your van, how much are you paying?
« Reply #18 on: February 22, 2020, 05:24:15 pm »
That van is costing you 20 k all in all did you say Daz

If I pay the balloon and keep it...yes(which I probably will as itll only have 15,000 miles on the clock after 5 years).itll have at least another 5 years life in it before I sell it.

And what you've done makes sense because you are doing minimal mileage.

But the original poster has a van that he does a fairly big annual mileage in, so the depreciation on his van will be greater than yours. Once a vehicle reaches 100k its value drops very quickly.
 
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

zesty

  • Posts: 2454
Re: If you lease your van, how much are you paying?
« Reply #19 on: February 22, 2020, 07:48:23 pm »
Interesting replies.

KS, good point, I’ll look into that as an option.

Daz, what in the world is RFL?

Thanks for info Deegee.

RFL......road fund licence

Never heard of it mate!


Er.......RFL.......road tax....... ::)roll ;D

Ha ha!

Never heard it as RFL, I’ve always known it as car tax, or road tax.