[hotsteam]

Hi, All, I'm not sure about leasing a new van, as I don't want to get ripped off when a hand it back !
or given the choice would it be better to pay the balloon payment and keep it  ?

How much might the balloon payment be ?

 What are your experiences  ! 

Cheers  Pete 

[NWH]

There’s many ways of doing it like contract hire etc you pay a deposit have set monthly payments, after the term hand it back start again no balloon to pay.

[harleyman]

What about fixing a system in bolted to the floor do you get a repair bill

[Dave Willis]

Biggest pitfall of leasing a new van would be when a pandemic comes along and you can’t work. Either that or ill health/accident prevents you working and your caught in a contract with something you couldn’t really afford in the first place.

[Don Kee]

If you plan on keeping it then get it on HP. Slightly higher monthly payments than lease but no balloon payment.

If you plan on handing it back when you’re done and getting another then lease is the way to go. You’re only committing to a monthly fee; as long as you can afford it, you’ll basically have a new(ish) van all the time with minimal maintenance costs.

Only a mug would pay the balloon payment at the end of leasing.
Once you’ve paid it, you end up paying over the odds for a van (total cost), that you could have got cheaper if you’d bought it HP in the first place.


The good thing on both is they’re tax deductible, so may be worth letting your accountant know it’s something you’re thinking about to see which works best for you financially.

[NWH]

Don’t get it on HP through the van  provider get a bank loan,if you have a business account you can specify what you pay a month.

[kikjason]

One of my customers a milk man had a transit van on lease hire.. Timing belt snapped at 30000 miles.. Missed a service by a few weeks... Ended up paying £6000 for a new engine.. Plus having to hire another van while other was mended and still paying for the original van.. Lease hire company wouldn't budge about new engine... He only had a couple of months left on the lease aswell

[Small but perfectley formed]

I thought transit s had a timing chain

[dazmond]

There are no pitfalls at all if you can  afford the monthly payments

[kikjason]

Chain or belt it snapped and cost £6000

[Spruce]

I thought transit s had a timing chain

The earlier Transits had a 2.0 diesel engine which was cambelt driven.

The deal done by Ford with PSA was that Ford would continue to use the Hdi engine in Ford cars but the Ford Puma engine in all the PSA vans , Ford vans and Landrover.
The Puma engine is chain driven. The independent garages see quite a number of Transits with snapped timing chains at around 130k.
So whilst Ford tell you that the timing chain never needs to be replaced, it does.

A timing chain kit with sprockets and chain tensioner costs around £200 and the garages want around £350 + Vat to fit it. Whilst they are there its a service as well as the oil and filter must be changed afterwards.
 

[KS Cleaning]

The biggest pitfall of leasing is being naive and falling for the salesman’s talk of “ it is only X amount of pounds per month “
Look at the bigger picture and see what the van is costing overall.

[NWH]

Yeah like 16-20 grand for a new Vivaro or maybe more not to many years ago 🤣.

[hotsteam]

There are no pitfalls at all if you can  afford the monthly payments

My Son works for a company returned a van at the end of the lease, they were to pay around £1700 for damage,, my son told me there was hardly a mark on it !
It got reduced to about £1000 in the end, what a con.

Another time a leased car was burnt out, which was one year old, the company had to make up a shortfall of £2700 because the insurance just paid market value, not what was owed on the car, as they did not have Gap insurance  !

So your statement is looking very silly   
"There are no pitfalls at all if you can  afford the monthly payments"

[NWH]

They always find damage with them when you return them I’ve heard that story many times,you’ll get a far better deal buying 1 through your bank.

[dazmond]

There are no pitfalls at all if you can  afford the monthly payments

My Son works for a company returned a van at the end of the lease, they were to pay around £1700 for damage,, my son told me there was hardly a mark on it !
It got reduced to about £1000 in the end, what a con.

Another time a leased car was burnt out, which was one year old, the company had to make up a shortfall of £2700 because the insurance just paid market value, not what was owed on the car, as they did not have Gap insurance  !

So your statement is looking very silly   
"There are no pitfalls at all if you can  afford the monthly payments"

Dont lease one then....

Mines a business finance lease so I'll be buying my van at the end of the lease....

Itll only have around 15,000 miles on the clock by the end of the contract....

[dazmond]

Its foolish to lease a brand new car without GAP insurance.....its not the leasing companies fault!

[Spruce]

There are no pitfalls at all if you can  afford the monthly payments

My Son works for a company returned a van at the end of the lease, they were to pay around £1700 for damage,, my son told me there was hardly a mark on it !
It got reduced to about £1000 in the end, what a con.

Another time a leased car was burnt out, which was one year old, the company had to make up a shortfall of £2700 because the insurance just paid market value, not what was owed on the car, as they did not have Gap insurance  !

So your statement is looking very silly   
"There are no pitfalls at all if you can  afford the monthly payments"

Dont lease one then....

Mines a business finance lease so I'll be buying my van at the end of the lease....

Itll only have around 15,000 miles on the clock by the end of the contract....

Its all ok in the majority of cases.

But if an accident happened then things can start to go pear shaped if you can't afford the monthly payments.
If you had to ask for a settlement on your van now you would probably get a fright.

I don't know what the leasing companies are doing regarding deferring payments during the Covid-19 virus. If they still insist on monthly payments then there is going to be a lot of default and repossessions shortly.

Our nephews tell us that they have been in lockdown in South Africa. It started on the 26/3 and has been extended until the end of April. Business have been warned that it will most likely be extended to the end of May.

If the same thing happens here there are going to be major financial problems.  This government is clever enough to feed bad news slowly.

I have no idea what our business is going to look like at the end of all this. If we are still alive, how many of our older customers won't be. What will the financial situation be of those left. Will window cleaning be a necessity?

[dazmond]

one thing i didnt know before i started leasing my van was the RFL attracts VAT!so i pay £320 a year at present including VAT......

[SB Cleaning]

I wouldn't lease as i prefer to own my vans, I bought a 65 plate vivaro 3 years ago on hp 4.9% Apr ,  2 more payments and its paid for, the van was bought with 32k and has 55 k now and it's been very reliable i intend to keep it to 100k so it will do me for another 5-6 years.