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Some businesses prefer to take advantage of van leasing as a means of side stepping long-term ownership of particular vans. When deciding on this alternative, however, it is essential that a small business makes itself totally aware of the advantages and negative points of a specific deal both in the short and long duration, particularly where the credentials and dependability of the leasing company are in question.

Deferring the buying of a van outright through van leasing makes sense for a company if long-term possession of the van is beneficial, but where short-term cash-flow is constrained. This form of van leasing, branded as 'lease purchase', appears as an asset on the balance sheet of a firm, and may also have tax offsetting benefits.

However, some devious lease companies and dealers may coax a business in with the guarantee of low monthly vehicle lease payments without making it fully informed of the more costly final, or 'balloon' payment due at the last part of the lease period. Low month-to-month lease payments can often mean a very high closing purchase payment. It is for that reason not only a great idea to shop around and find the best quotes for a preferred van, but to moreover make sure that the leasing company is a well thought-of one that will make fully translucent the conditions of the lease and what it means to the company in question.

One of the main features to decide on before entering into a contract hire agreement is the desired duration of the contract hire period. A contract hire agreement, whereby a automobile is leased over the long-term to a customer before at last being returned to the leasing company, can run any length of time from one year to five years depending on the needs of the client and the policy of the leasing company.

A shorter lease will usually involve rather higher monthly payments from the consumer, contract hire payments are principally based on the vehicle's depreciation in price over the hire period, and in the primary year of a vehicle's life the depreciation rate is at its highest. In following years the depreciation rate continues at a much steadier rate, so sticking with the same vehicle over a longer hire period will entail the customer paying out a much cheaper, averaged-out monthly rate.

On the other hand, being tied to a car for too long can risk being burdened with the regular problems linked with older vehicles: higher repair costs and lower reliability. The drawback is compounded by the high likelihood that an extensive contract hire time will take the vehicle way beyond the time limit of the manufacturer's guarantee, leading to the possibility of expensive repair bills.

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