Can a Sole Trader Lease a Van?

Running your own business is demanding in itself. Sole traders dread the extra work that comes when vehicle maintenance is added to their list of tasks. 

This is why leasing is becoming a popular choice for sole traders everywhere.

If you’re unsure how leasing a van when you’re a sole trader works, you’ll get all the answers here.

Steps to Follow When Leasing a Van As a Sole Trader

Leasing a van when you’re self-employed requires more than just signing a contract with the nearest dealer. Here is a guide to follow:

1. Compare Dealers

The best dealers for van leasing will have several vehicle options in their inventory, provide room for negotiation and offer several competitive deals.

It’s easy to get more information about cheap van leasing these days. You can browse the internet or call the company while at home. 

2. Compare the Figures

Finding the right dealers is only the first step in the process. You should further narrow down your choices by comparing the deals they offer.

The figures matter here. The quotes you get from the lessors should be comparable, so check the rentals and the upfront payments each dealer requires. 

This is also the right time to find out if a particular stock is available to avoid getting disappointed eventually.

3. Be Flexible With Your Options

Sometimes, you may need to move away from your preferred van type to get the best deal. There might be a model you consider best for your business but keep an open mind regarding other models.

Welcome suggestions from the dealer, and you may be able to save money on your van lease. A professional leasing company will guide you through making a decision, and this may include suggesting an alternative van model.

4. Cross Check Your Contract

The final step before sealing the deal is to double-check all the agreements to be sure they are in line with your requirements.

Do you find the warranty and maintenance terms suitable? Go ahead and finalise the deal if you are satisfied with these details.

How Does Van Leasing for Sole Traders Work?

The process is much easier than you may have imagined and cost-effective too. You will decide the number of years you want the van for, pay the initial rental fee, and then you have a business van. 

All that is left is to keep making the agreed monthly payments for the contract duration. 

Before the lease is approved, the finance company will have to assess your ability to make the monthly payments. This process is called a credit check and involves going through your credit history. 

You stand a better chance if you have a great credit score, but if not, you may still be eligible for van leasing. 

Can a Sole Trader With a Bad Credit Score Lease a Van?

Your exact credit score and provider will determine if you can be eligible for van leasing despite having a bad score.

A bad credit rating can make the process a bit more challenging for you, but there are ways to get past that. 

Several dealers will enter into a contract with you if you can provide a guarantor. You can also try paying outstanding bills before approaching a leasing company. If your personal credit rating is poor but you have good business credit, this increases your eligibility. 

What Are Some Things to Consider Before Leasing a Van As a Sole Trader?

 

If you’ve leased a personal car before, you should know some of these already. Van leasing as a self-employed trader requires similar consideration:

• Choose the lease duration carefully. Terminating the contract early will attract penalties that can be up to 50% of the leftover rentals.
• Van leases are subject to mileage limits like any other kind of lease. If you underestimate the miles you’ll drive, you may end up paying a high charge per mile for the extra miles.
• Plan for insurance when deciding on the van.
• At the end of the lease, the dealer will check the van for fair wear and tear. You will have to pay if there is severe damage.

Conclusion

Leasing your business van is more beneficial than buying if you’re a sole trader on a restricted budget. Asides from the lower rentals, think about the tax savings you can enjoy when you lease. 

You are armed with the right information now, so expect a smooth lease process.