Electric Van Lease or Finance: Your No-Nonsense Guide

Why This Guide Matters

Let’s be honest—switching to an electric van is a big decision. The move isn’t just about being greener or ticking a box for your business. It’s about your bottom line, how you run your day-to-day, and making sure you don’t end up with a dud deal. Plenty of folks get tripped up by the small print, or get pushed into something that’s more complicated (and expensive) than it needs to be. That’s why we’re here: to cut through the noise, give you the facts in plain English, and help you find the right way to get behind the wheel of an electric van—without the faff or hidden costs.

The Basics Explained

When it comes to getting an electric van, most people land on one of two options: leasing or financing.

• Leasing: This is like a long-term rental. You pay a fixed monthly fee to use the van for a set period (usually 2-4 years). At the end, you hand it back—simple as that. Maintenance is often included, and you don’t have to worry about the van’s value dropping.

• Financing: Here, you’re working towards owning the van outright. You’ll pay monthly instalments (plus interest) over a few years. Once you’ve made all the payments, the van is yours to keep, sell, or trade in.

Both options have their place. It all comes down to how you use your van, what you can afford each month, and whether you want to own or just use the vehicle. If you’re still scratching your head, don’t worry—we’ll dig into what this means for you next.

How It Affects You

The way you get your electric van can make a big difference to your cash flow, your tax bill, and even how you feel day-to-day. Here’s how:

• Monthly Costs: Leasing tends to have lower monthly payments compared to financing. That can free up cash for other things—like growing your business or just making life a bit more comfortable.

• Ownership: If you want to own your van at the end, financing is the way to go. Leasing means you’ll always need to renew the agreement or get a new van when your term ends.

• Mileage & Wear: Most leases set a mileage limit. Go over, and you’ll pay extra. If your work takes you up and down the country, financing might be a better fit. Financing also means you don’t need to worry so much about little scuffs and scratches.

• Tax: Both leasing and financing have different tax perks. Businesses can often claim back VAT on lease payments and offset costs against profits. Financing may let you claim capital allowances. Worth a chat with your accountant to see what works best for you.

In short, the right option depends on your business, your driving habits, and your plans for the future.

Our Approach

At Kandoo, we believe getting an electric van shouldn’t be a headache. We cut out the jargon and keep things simple. Here’s how we can help:

1. Straight-Talking Advice: We won’t bombard you with sales talk or push you into a deal that isn’t right. We’ll ask about your needs, your budget, and your long-term plans. Then we’ll break down the options so you can see what suits you best.

2. Wide Range of Lenders: As a broker, we work with loads of different lenders across the UK. That means we can shop around for the best deals—whether you’re leaning towards a lease or thinking about finance.

3. No Hidden Nasty Surprises: The last thing you want is to sign up for a van and find extra fees lurking in the small print. We’re upfront about costs, terms, and any extras. If something doesn’t make sense, we’ll explain it until it does.

4. Quick Decisions: We know you don’t want to wait weeks to get on the road. Our process is streamlined, and we’ll keep you in the loop from start to finish.

5. Support All The Way: From your first question to the day you get your keys—and beyond—we’re on your side. Have a question? Just ask. Need to change your agreement? We’ll help sort it.

Bottom line: We treat your money like it’s our own. If we wouldn’t recommend it to our mates, we won’t recommend it to you.

Before You Decide

Before you sign anything, it’s worth stopping for a moment and asking yourself a few key questions:

• How many miles do I really drive each year?

• Am I fussy about having the latest model, or am I happy to keep a van for five years or more?

• Is cash flow more important than long-term ownership?

• How important is flexibility if my business changes direction?

• Am I comfortable with the idea of handing the van back at the end, or do I want it to be mine?

It’s also a good idea to:

• Get a quote for both leasing and financing

• Speak to your accountant about the tax side

• Factor in insurance, maintenance, and running costs (electric vans are cheaper to run, but still worth a look)

A bit of thinking now can save a lot of hassle down the road. We’re always happy to talk things through, even if you’re just weighing up your options.

What’s Real, What’s Hype

There’s a lot of noise about electric vans. Some of it’s true, and some is just sales patter. Let’s clear things up:

• Real: Electric vans are cheaper to run, quieter, and (usually) get tax breaks.

• Hype: They’re totally maintenance-free. (They still need servicing, just less often.)

• Real: You’ll save on fuel, especially if you do a lot of city miles.

• Hype: Leasing is always cheaper than financing. (Depends on mileage, deposit, and how long you keep the van.)

• Real: The used market for electric vans is growing, so values are holding up better than a few years ago.

Don’t fall for the hard sell. Look at the numbers, not the hype.

Pros & Cons

Here’s a side-by-side to help you weigh things up:

Other Options to Consider

Not sold on leasing or financing? There are a couple of other routes you might want to look at:

Hire Purchase (HP)

A bit of a hybrid. You pay monthly, and at the end, the van’s yours—no balloon payment. Good if you like the idea of ownership but want to spread out the cost.

Contract Purchase (PCP)

You pay monthly for a few years, with the option to buy the van at the end (by paying a final lump sum), or hand it back. Great if you’re not sure you want to commit to owning long-term.

Outright Purchase

If you’ve got the cash, buying outright means no monthly payments and no interest. But it ties up your money, which could be better spent elsewhere.

Short-Term Rental

Need a van for a few months, or have a seasonal business? Short-term rental gives you flexibility without long-term commitment, but costs can add up over time.

Each option has its place. We can walk you through the pros and cons of each, based on what matters most to you.

FAQs

Q: Is leasing better than buying? A: Not always. Leasing is usually cheaper monthly and gives you a new van every few years, but you never own it. Buying (or financing) costs more each month, but you end up with an asset.

Q: Do I need a big deposit? A: Not necessarily. Some leases and finance deals ask for just a few months’ payments up front. Others let you put down more to lower your monthly cost. It’s flexible.

Q: What happens if I go over my lease mileage? A: You’ll pay extra per mile—so it’s important to be honest about your mileage upfront.

Q: Are electric vans reliable? A: Yes. Fewer moving parts means less to go wrong. But you’ll still need to service them (think brakes, tyres, and the odd software update).

Q: Can I claim tax back on a van lease or finance? A: Usually, yes. Lease payments and finance interest can often be offset against tax if you’re using the van for business. Speak to your accountant for the best advice.

Q: What about insurance? A: Electric vans generally cost the same (or less) to insure than diesel ones—but always get a quote before you commit.

Q: Can I get a van if I’ve got bad credit? A: It’s possible. We work with lenders that consider all sorts of credit histories. Your options might be a bit more limited, but there are still deals out there.

Next Steps

Ready to get moving? Jot down your priorities—mileage, budget, and whether you want to own the van. Then, get in touch for a no-pressure chat. We’ll walk you through your options, give you honest answers, and help you find a deal that works for you. No faff, no fuss. Let’s get you on the road.