OSV

The UK's Trusted Leader in Car Leasing and Sales

What is the best work van?

Are you looking for the best work van for your business? Have you been searching and there are so many options that you need some help with the search?

Whether you’re a plasterer, scaffolder or carpenter, when it comes to finding the perfect work van there are many different things you need to consider.

Every business has different requirements when it comes to the vans they get, depending on the job that you need the vehicle for.

So, whether you’re looking for a van with a generous payload, the capability of pulling a trailer or enough space to drive your crew to a job site, we can help you find the right van that will fit every one of your business needs.

What should I look for when searching for the best work van?

When it comes to carrying the essential tools and equipment you require for any heavy-duty job it’s important to have a van that not only offers a sizeable payload but can also transport ladders, boards and other equipment that you might need for a given job, whatever your role in the construction process, whether you’re putting in the foundations or fitting kitchen cabinets.

If you’re looking for a new van for your business then we would always recommend you look at the sort of jobs you do. Are you a sole trader who only takes on small domestic jobs? Or is the business larger, regularly working with developers on big projects?

When it comes to searching for the perfect work vans it’s also a good idea to look for something that’s economical to run. So when you’re looking at the van specification it’s always worth considering how many miles it can do to the gallon. If you’re having to fill it up every other day then it’s not going to be an economical investment for your business.

Things you should add to the list when searching for a new work van include:

• Payload
• Loadspace
• Type of equipment you transport
• Type of jobs you carry out
• Budget
• Fuel economy

What types of work van are available?

There are several different types of work van available and the best work van for you will depend entirely upon the sort of work you need them for.

Small vans

Small vans have a short wheelbase and you will often see them referred to as SWB. They have a lower payload and less interior space. However, this may be exactly what you’re looking for if you’re a sole trader looking for something that will transport the equipment and materials for a small domestic plastering job.

Medium vans

If you’re looking for something that sits perfectly between the small and large vans then this is where you need to start your search. These vans have a short wheelbase, like small vans, but they also have a more generous amount of storage and higher payload. If you’re looking for a vehicle that can transport the materials for kitchen cabinets or you’re a painter who is decorating a house then this could be just what you’re looking for.

Large vans

These are the largest vans that you can drive on a standard UK drivers licence, depending on the payload. A large van has a long-wheelbase (LWB). Vans like the Luton/box van are included in this group. These are ideal if you’re looking for something that can transport heavy bags of plaster, wood or materials for a conservatory.

4×4 and Pickup vans

These look so different to the others as they are a cab with an open cargo bed at the back. If you’re looking for something that is more cargo and only need room for a single driver and passenger then we’d recommend a single-cab pickup. Of course, if you want to use this as a family vehicle on the weekends or need to take a crew to the worksite every morning then the double-cab option is the best one.

Tipper and Dropside vans

This is the sort of van that you’ll often see piled high with scaffolding due to the fact that though it has a payload like any other vehicle, there is a little more flexibility to store items that can be piled and secured.

What is the best work van?

As we’ve already established, if you’re looking for a new work van then you’re going to be looking for the best work van that meets your business needs. We have put together a list of the 5 top vans, in our opinion.

Ford Transit Custom

The Ford Transit Custom has multiple configurations and the short wheel-based L1 260 is a great option if you’re looking for a medium van.

It has a payload of 685.9kg and a load length of 2.5 metres. The interior of the van is lined for easy cleaning and protection against damage. Thanks to the generous load length it’s perfect for transporting long plasterboard or floorboards and you can customise it with a roof rack to carry a ladder or two depending on the job you’re doing.

Mercedes Sprinter

Looking for a van with multiple specification options? The Mercedes Sprinter is a very flexible vehicle that we would recommend you add to your list.

Depending on the trim you select, the Sprinter can carry anything between 884 and 2,317kg – which is fantastic if you’re transporting roofing tiles, joists and the tools you’ll need to construct a roof. Another bonus to the Sprinter is the fact that it has a braked towing capacity of 2,000kg, so you could put a trailer on the back to transport a cement mixer.Of course, with a massive payload, you get reduced fuel economy, and the Sprinter gets between 29 and 32 miles to the gallon, but if you need to transport heavy goods on a daily basis from your business to the worksite then you’ll be happy with the generous payload.

Citroen Relay

Whenever you’re looking for a new vehicle, whether for business or personal use, one question you should ask yourself is “what do I need my vehicle to achieve?” Knowing the answer to this can help you to make a decision when you have a lot of options to choose from.If you’re looking for a van with great payload and high sides – whether for transporting tall panes of glass or a hoarding promoting your business – one of the best is the Citroen Relay.

The Relay comes in 7 different height and length configurations with a load length of between 2.6 to 4 metres depending on the option you select. Payload is also incredibly generous, varying between 1,119 and 1,900kg.

Ford Transit

If you’re looking for a generously sized van to transport heavy and large materials and all the tools you require for a job, then we would recommend something like the Ford Transit single cab chassis with a dropside body.  The longest of these is the L5, which has a load length of 5.1 metres. This model also has a gross vehicle weight of 4,700 kg, which means the driver will need to have a Category C driving licence.

The payload on the longest wheelbase Transit chassis is just over 2 tonnes, at 2,077kg, which is enough for many, if not all, standard scaffolding jobs.

Volkswagen Transporter T6 LWB

We would always recommend you put together a list of the most important requirements you have for your van, whether it’s payload or load space, as this will make it much easier to determine which models are best when it comes to your individual business needs.

If you have a business that works with construction companies and also takes on smaller jobs then the Volkswagen Transporter T6 is a van that should be at the top of your list. It’s economical thanks to Bluemotion technology that can help you make a 15% fuel saving.

With straight sidewalls, your equipment and materials can be protected from damage. The payload and load length of the Transporter T6 depends on which trim you choose, however, the payload is between 713 and 1,309kg and load length ranges between 2.5 and 2.9 metres with a standard load width of 1.7 metres, which is easily wide enough to load and unload a beautiful claw-foot tub or stunning handbuilt kitchen cabinets. 

As you can see, there are a lot of options when looking for the best work van for your business, no matter your needs. There are several things we would recommend you do before you start your search, including making a list of the type of jobs you carry out as a business, this will help identify the sort of van that best suits your needs. 

All of the vans we have mentioned have qualities that make them great vehicles with payload and load space that will meet your needs, depending on your individual business requirements. 

With over 20 years of experience helping businesses to find their perfect van, OSV can help you find the right vehicle to lease that will meet your needs.

What are the ins and outs of van leasing in the UK?

Are you looking for a new van? If so, have you been considering van leasing and wondering whether this is the option for you?

There are many benefits to van leasing; you get a brand new vehicle, overall it tends to be cheaper than buying and you can upgrade every few years. It’s a valid option if you’re looking to get a new van.

When it comes to van leasing there are things that you need to consider and in this article, we take a look at the pros and cons, the lease contract options available and give you ideas of the type of vans available.

What are the best van leasing contracts?

When you’re looking for a new van there are a few lease contract options for you to choose from. The one that you eventually select will depend on your individual situation and what you need from the van including the mileage, how long you want the van for and what you want to do with it at the end of the agreement.

Finance Lease

If part of your business requires you to travel a lot of miles in your vehicle (upwards of 50,000) and it’s possible you’ll need to make modifications to the van, or it’s going to regularly be driven over rough terrain then it’s worth thinking about getting a Finance Lease.

There are many benefits to getting a van on a Finance Lease, especially if your business is VAT registered.

You can claim 100% of the VAT back on a Finance Lease in your annual VAT return (if you get a car you can claim 50% of the VAT back).

The cost of a Finance Lease is calculated using the overall cost of the vehicle, the duration of the contract (between 1 and 5 years if you get a van) and the amount you have agreed to make as the end payment (which is also known as the balloon payment).

The balloon payment is an estimate of what the value of the vehicle will be at the end of the agreement as mileage and condition won’t be available, it is based on how many miles you estimate you’ll do over the duration of the agreement and the wear and tear you anticipate it will have.

Even better, you can set the balloon payment, depending on how much you want to put down as your initial payment and the amount you’re willing to pay on a monthly basis.

When you reach the end of the agreement there are a few options you can take. You can:

• Continue to make monthly payments on a yearly contract (you will usually have a charge that is equivalent to one monthly payment in order to arrange this – this payment is often referred to as a Peppercorn rental)
• Return the vehicle
  • The Finance House will then sell the vehicle to cover the balloon payment
• Sell the vehicle on to a third party to clear the balloon payment
  • Any profit from the sale will be yours (minus a small administration fee)
  • If the money from the sale doesn’t cover the balloon payment you will need to make up the difference

So, what are the advantages and disadvantages of a Finance Lease?

There are a considerable number of advantages to a Finance Lease for a business, especially if you’re looking for a vehicle or multiple vehicles. 

If you’re looking to convert your van – perhaps you need one to transport food requiring refrigeration, or a vehicle for transporting a number of dogs – Finance Leases give you this flexibility. There is no annual mileage allowance and you don’t need to keep to the Fair Wear and Tear conditions outlined by the BVRLA.

You can end the agreement early, which could be seen as an advantage, though you may be asked to pay a sizeable penalty for this. You also won’t own the vehicle at the end of the agreement.

Contract Hire

The other option when it comes to van leasing is Contract Hire. This is actually the most popular and traditional lease agreement available. It’s a perfect option if you’re looking to simply hand the van back to the Finance House at the end of the contract.

A business contract hire (or BCH) agreement enables a company to rent a van for between 1-5 years). Before you agree to the terms a mileage allowance is set and you will need to ensure the van is well maintained. 

When you reach the end of the agreement you return the vehicle to the Finance House and you have nothing further to pay, subject to fair wear and tear and any excess mileage.

As with any finance agreement, there are pros and cons that we believe you need to know about. 

Some of the pros are that:

• You won’t suffer any depreciation loss as you don’t have to sell the van
• As the monthly payments are consistent throughout it’s easy to budget for
• Vehicle Excise Duty (road tax) is included in the agreement

But with the pros come the cons, and these include:

• You will need to ensure the van is well-maintained as you’re subject to fair wear and tear conditions
• If you go over your mileage allowance you could incur excess mileage charges
• You won’t own the vehicle outright – though this could also be considered a positive.

What affects the price when van leasing?

When you start to look into van leasing it’s important to know what can affect the price of a van. It’s a relatively small list of items and incredibly similar to the things that can affect the price when you look at leasing a car. These things include:

• Mileage
• Length of the contract
• Type of van you’re leasing
• Residual value of the van
• Initial payment amount

With a Finance Lease, the price is also affected by the balloon payment at the end of the contract. As we’ve already said, due to the fact that you don’t have any mileage or condition restrictions with a Finance Lease there is no way to truly tell how much the van will be worth at the end of the agreement. The balloon payment is one estimated on how many miles the van may do and the condition it will be in at the end of your lease.

What should I consider when looking at van leasing?

So, what sort of things should you be looking for when you’re thinking about van leasing? We always suggest that you put together a list and below are a few of the things that you consider when you start your search:

• Type of contract best suited to your situation
• Size of the van
• Mileage
• Initial payment amount
• What the van will be used for
• Payload and loadspace
• Running costs

All of these things will come into play when you start to consider the best van to lease for your business. There are so many different vans available and each of them has something different to offer when it comes to your business needs. We’ve put together some articles that will give you some guidance on the type of vans available depending on your business, these may help when you start your search.

• Gardening vans
• Work vans (scaffolding, construction, carpentry)
• Refrigerated vans
• Vans for dog walkers

Conclusion: What are the next steps?

As you can see from the article, there are a few things to consider when you’re looking to lease a new van, including putting together a list of your business requirements, such as the sort of work you’re going to be doing, which will lead to decisions on payload, range and load space. You’re also going to need to think about your budget, mileage and how long you want to keep the van for. Once you’ve put together all of this, the next step is to speak to someone and that’s where we come in. 

At OSV we have over 20 years of experience helping people like you to find the right van for your business. Whether you’re looking for a fleet or a single van, give our experienced team a call and let us help you to find the right vehicle to fit all your business needs.

7 types of customer that aren’t a good fit for a vehicle broker like OSV

It is because, as a company, we like to be honest with our customers that we’re writing this article, so you know who will and won’t be a good fit for the business, depending on individual needs.

We know that we’re not the right vehicle broker for everyone and we believe it’s really important we talk about that.

Do you have bad credit?

If we’re being completely honest here, if you have poor credit or county court judgements (CCJs) in your credit history, we won’t be able to help you when it comes to leasing a new vehicle, even if you have outlined a sensible budget.

We always recommend customers sign up for a credit check service when they’re looking at big-ticket items such as buying a house or leasing a car. This gives you a really good idea of what is in the last six years of your credit history.

We’re experts at working with complicated finance applications, but we can’t help you if your credit rating is poor.

It’s for that reason that we might not be the right fit for you.

Are you based outside the UK?

If your legal base is somewhere outside mainland UK, unfortunately, we aren’t in a position to help you.

Essentially, if you live, or have a registered company, in England, Scotland, Wales or Northern Ireland, on Hayling Island or the Isle of Wight then we can help you to lease a car.

However, if you’re someone who lives on the Isle of Man or the Channel Islands then we won’t be able to help you. This is because though they are part of the British Isles, they aren’t part of the UK mainland so they have their own DVLA, and therefore their own registration system for new vehicles.

Because the Channel Islands and the Isle of Man have their own DVLA, you would have to change the registration plate of a car to drive it there as a resident. Unfortunately, you cannot do this when you lease a vehicle because you don’t own it. A leased vehicle is the property of a Finance House and they are based in mainland UK, so they are unable to do this.

Do you conduct all your business over email?

Are you someone who does all your business via email and doesn’t like to talk to anyone over the phone? If the answer to this question is yes then we’re not the right vehicle broker for you.

At OSV we offer a bespoke service, catering to you and your vehicle needs and this is not something we can do effectively by email.

We like to ensure that we offer a high level of service and that you get the benefit of our team’s expertise as well as ensure we fulfil requirements set out by the FCA that ensure we’re offering you the best and most suitable leasing options for your individual circumstances. This is something we need to communicate over the phone.

Of course, that doesn’t mean we can’t communicate with you over email, but we really want to understand your vehicle needs. We have so many options available to offer you and speaking on the phone makes it a much more personal experience. At OSV, no one is a number, every customer is an individual and we feel it’s important that we can provide you with the personal touch.

Do you prefer to do business face-to-face?

As a vehicle broker, we aren’t the same as a dealership, our business is carried out primarily on the phone and online.

This isn’t because we don’t want to see you in person, but our business is very rarely carried out face-to-face.

We’re based in West Sussex, but do business with people across the whole of the UK. So we may be just a little too far away for you to pop in for a visit.

If you do want to have a chat and see the friendly face of the person who’s helping you on your new vehicle journey, you can always speak with us on Zoom. We’re only a call away.

Of course, if you do want to visit us we’ll welcome you with open arms and a cup of something hot. Though we would recommend you give us a call to let us know.

Do you want your lease car for a taxi?

Have you been looking for a new car? Are you thinking about using it as a taxi or an Uber? If the answer to the second question is yes, then we’re probably not the right vehicle broker for you.

We’re not saying that you can’t lease a car to use as a taxi, but we would definitely recommend you go through a specialist lease company that leases taxis.

It’s incredibly rare for manufacturers to send lease deals for taxis across to a vehicle broker like OSV.

Are you happy to talk budget?

Some customers simply don’t want to talk about their budget and just want to be sent offers. 

Of course, your budget is not the most important factor in the beginning. However, having an idea of the budget you have set aside for your new vehicle will give us an idea of the direction we should be going when it comes to the requirements you have given us. 

It’s important for us to be able to provide you with vehicles that meet your individual requirements and are affordable for you.

Are you looking for the cheapest price?

We’re always looking for ways to give you the best deal when searching for vehicles. However, we’re not a company that just looks for the cheapest price, we focus on value. 

We’re going to look for the ideal price, and sometimes that may not, on the surface, be the cheapest one.

We pride ourselves on finding deals that are tailored for you and your situation. All this means is we listen to what you tell us about your specific needs and then we search for the vehicles that are right for you and fall within your budget.

We know that some companies focus on getting prices without considering whether the vehicles and offers they have found are right for your situation. For example, they may find an offer that has the monthly payment you want, but the mileage is too low, or your initial payment is higher than you originally budgeted for.

If you simply want the cheapest deal, then we’re not the right company for you.

Our focus is on customer service and ensuring you have a great experience when you work with us and get exactly what you are looking for. 

As you can see, the list of people we are not in the best position to help is rather short. But in summary, if you are not a resident of the UK mainland, want to do all your business via email, or want to lease a vehicle for use as a taxi or an Uber then we’re not the right vehicle broker to help.

We’re also not a good fit if you‘re only looking out for the cheapest deal and don’t want to discuss your budget.

We work hard to be a good fit for everyone, offering advice and finding the most suitable vehicle offers for our customers. However, we understand that we aren’t for everyone, and we hope that this article has helped you to decide if OSV is a good fit for you.

Who is a great fit for OSV?

Have you just started the search for your next vehicle? Do you live in the UK? Do you have a healthy credit score and want to get rid of some of the stress that can go with getting a new car or van? 

If you’ve been searching for a vehicle broker and we’ve just described you, then we’re the company you’re looking for.

With just a phone call or Zoom meeting, we can start the search to find the car or van you’ve been looking for, one that meets your requirements and budget. 

We hope, in the future, you will join the thousands of happy customers we have been able to help since the business was founded in 1997.

5 things you need to know about credit checks and car leasing

Are you looking to lease your next vehicle but aren’t sure how or even if this will impact your credit score?

Have you ever wondered why a Finance House will carry out a credit check before your finance is approved?

In this article, we take a look at why a credit check is carried out, the information that shows up in your credit report, the steps you can take to improve your credit score going forward, the impact that getting a vehicle lease will have on your score and whether you can lease a vehicle without having a credit check.

1. Why is a credit check carried out when leasing a car?

A credit check is the best and most reliable way for a Finance House to discover whether you will be able to make the monthly payments or not.

Your credit score will show the underwriters whether you’ll be able to make the payments, the higher your credit score the better. 

Because you don’t own the car, the Finance House needs reassurance that you’re going to be able to meet the commitment of your monthly payments. The easiest way of determining your financial commitments is to take a look at your credit score.

As much as we are sure they would like to, finance houses can’t look at each case on an individual basis, so they do a quick credit check that is done by a computer.

2. What information is on my credit report?

Your credit report will actually tell you a number of things about your financial status as well as information about you. The things you will be able to see on your credit report include:

• Name and date of birth
• Electoral roll information
  • Including information about past addresses
• List of credit accounts
  • Including accounts that have been closed and settled in the past six years
  • Information on credit limits and loan amounts on mortgages
• Credit cards and loans
  • Details of your current account overdraft
  • Information about application searches
  • Any missed or late payments and how many
• Any financial links to other people
  • If you have any joint credit applications
• Any history of debt problems including bankruptcies or CCJs.

A credit report will go back six years and will also include information showing whether your identity has been used for anything fraudulent.

As you can see, there’s quite a lot of information to be obtained from your credit report that the underwriters need to then go through.

3. How can I improve my credit score?

If you’re concerned that your credit score isn’t what you want it to be, there are some things that you can do to improve it going forward. These things include:

• Paying bills on time
  • This one may seem obvious, but it’s actually the easiest way to improve your credit rating
• Keep your credit card balances low
  • Having a high debt-to-credit ratio could be considered a sign that you’re facing financial difficulties
• Only open new credit accounts if you need them
  • Having too many open credit accounts can be detrimental to your credit score
  • Having too few accounts is also bad, so ensure you have a healthy mix of accounts
• Pay off any debt
  • You can also improve your credit score by paying off any existing debt you may have.

Where can I check my credit score?

There are quite a few places online where you can check your credit score. At OSV, we use Experian most of the time, but there are others available.

Some websites will charge you for the service, however, the following will allow you to conduct a check without any fees:

• Clearscore
• Experian
• Equifax
• Creditkarma

4. Does leasing affect my credit score?

Any loan will have an effect on your credit score. From a credit standpoint, car leasing is exactly the same as getting a car loan.

Over a third (35%) of your credit score is based on your payment history, and car leasing is a payment. So, leasing does impact your credit score.

A further 25% of your credit score is the length of your credit history and the number of new accounts or enquiries you have.

Can car leasing positively affect my credit score?

It’s important to be aware that car leasing will likely have a negative effect on your credit score before it has a positive one, but this is the same as any loan you get on your credit account. However, as long as you stay on track with your payments and ensure that they are all made on time, it will improve.

If you don’t have much of a credit score, because, for example, you’ve not had time to build one, then leasing a car can be a great way to build your credit rating. 

As a car lease is an instalment account it can improve your credit score simply by appearing on your credit report.

10% of your credit score is the type of credit you use. So having a varied number (but not too many) of accounts open can improve your credit score.

While car leases are instalment accounts, credit cards are revolving accounts. So, if the only debt you have is credit card debt, adding an instalment account will improve your credit mix.

Can car leasing negatively affect my credit score?

There is a chance that a car lease will have a negative impact on your credit score.

As with any sort of repayment, if you miss an instalment then this will have a negative effect on your credit score.

If you open a new account or request new credit then your credit score can go down, though this is dependent on how many applications you have made in the past six months. 

New enquiries will stay on your credit file for two years. However, the good news is that any negative impact on your score from said searches is normally removed after 6 months. Though a car lease may have a negative impact initially, as long as you keep making your payments on time then your credit score will improve.

5. Can I lease a car without a credit check?

The short answer to this question is ‘no’.

If a vehicle broker or a leasing company claims you can lease a car through them without a credit check then we would advise you to be very wary.

There will be leasing companies and vehicle brokers that allow you to lease if you have a bad credit score, but they will still have to carry out a credit check.

We would never recommend you go through a leasing company that doesn’t carry out a credit check as it’s unlikely they will be reputable, and this means that if you experience any problems during the leasing process you won’t be protected by organisations such as the FCA and BVRLA.

If you don’t want a credit check because you have bad credit, then the best thing to do would be to find a reputable vehicle broker that has been set up specifically to help individuals or businesses with bad/poor credit.

Unfortunately, OSV has not been set up to aid those with bad/poor credit or CCJs and would therefore be unable to help you finance a vehicle. 

So, as you can see, a credit check is a vital part of the leasing process. Not only does it provide the Finance House with information about your credit, but also reassurance that you are able to meet the monthly payments you are committing to when you lease a vehicle.

Leasing can also be a really good way to build your credit rating, especially if your credit record is new. Making regular monthly payments and having a different type of credit account can also contribute towards building your credit score.

If you want to check your credit score before you apply for a lease then there are multiple online resources available that are free to use.

A credit check isn’t something to fear, it’s simply a way for a Finance House to reassure themselves of your financial status.

5 things to know about how to lease a vehicle for business

Do you run your own business? Have you just started the search for a new business vehicle? Perhaps you’re thinking about leasing and aren’t sure how to lease a vehicle for business and if you qualify.

There is a lot to know when it comes to business leasing, and having questions is understandable. Questions like: How do I lease a vehicle for business? What do I need to do to be eligible? What credit requirements do I need to meet?

We’re here to answer all of these questions and offer you support when it comes to finding your next business vehicle.

There are a huge number of benefits to business leasing, so it’s easy to understand why it has become such an appealing option for businesses when they are looking to get a vehicle or a fleet of vehicles.

But, how do you get a business car lease? Are you eligible and how can you get a business car lease if you run a new business?

1. How to lease a vehicle for business?

So, you’ve been searching for your new vehicle, but before you start the application process you want to know the answer to the big question. Can I get a vehicle lease through my business? 

There are several different types of organisations and businesses that qualify for a business lease.

If you or your business are any of the following, then you can qualify for a business vehicle lease:

• Public limited company (PLC)
• Limited Liability Partnership (LLP)
• Limited company
• Sole trader
• VAT registered business
• Charity
• Local authority
• Embassy

As you can see, there are a number of ways that you or your company can be eligible for a business lease.

2. How do you qualify for business leasing?

Whether you’re leasing a car through your business or privately, a credit check is carried out. 

If you’re a business customer, then the Finance House will carry out a credit check on the business, as well as possibly the director(s) of the company.

The credit check will be carried out so that the Finance House can be sure that it is able to meet the monthly payments and going through your financial history is the easiest way to do this.

A business credit report actually tells the Finance House a lot about your company, including:

• Basic company information, including the company’s address, past addresses, suppliers and the number of years it’s been trading
• The history of the business
• Government activity summary
• Company operational data
• Industry data
• Past payment history
• Business registration information
• Any public filings including judgements and legal filings.

It’s possible that the Finance House will ask for additional information and you’ll need to be prepared to send some (or all) of the following for them to look over:

• Bank statements that show a positive net worth, likely from the previous three months
• Valid addresses and identification of the company director(s)
• An opening balance sheet – if available

Unfortunately, if you have a bad/poor credit score, or you have CCJs on your credit history, OSV will be unable to help you to get a new lease vehicle.

3. My company is new, can I get a business car lease?

Have you just started your business? If so, then it is a little more difficult to get approval for a business car lease due to the fact that your company won’t have a very long financial history. However, we can show you how to lease a vehicle for business that is new.

Without a financial history to look through, the Finance House will have to use different tools to check your eligibility for a business lease.

In order to maximise your chances of getting a business car lease, you should be prepared to provide the Finance House with all the information we have already mentioned, but you should also be prepared to go above and beyond. This may include showing them a realistic cash flow forecast. If you provide the Finance House with a forecast that is unrealistic then it won’t be taken seriously, which will impact your chances of getting a business lease.

The more information you are able to show the Finance House, the more likely you are to be able to convince them that you will be able to make the monthly payments.

4. How can I improve my company credit score?

If your company is new, or your credit score is in need of improvement there are a few ways that you can improve it, though they aren’t an immediate fix and can take some time. These include ensuring you:

• Pay all invoices on time
• Avoid court judgments, though if one does occur ensure that it is settled within one month
• File annual returns and financial accounts on time
• Register your business with a credit reference agency or directory
• Check the credit position of your suppliers to ensure that you won’t be left in a difficult situation should one go into administration
• Keep an eye on the company credit score so that when the time comes and a credit check is carried out on the business there won’t be any surprises.

It’s worth taking a look at your credit rating using one of the free online resources available, such as Experian. This ensures that you’ll know what’s on your credit report when the Finance House carries out their credit check.

5. What are the business benefits of leasing?

There are quite a few benefits when you lease a vehicle for business, which is one of the reasons why it’s so popular.

Cash flow

One of the benefits of leasing a car through your business is cash flow. No doubt you’ve heard the phrase ‘Cash is King’ when it comes to business, and it’s true. Having your cash tied up in a depreciating asset is not ideal, nor is spending a huge amount of cash in one hit. When you lease, your money is not tied up in an asset that is losing money and, quite often, the monthly payments are lower than if you got the vehicle through a purchase scheme.

Leasing vehicles for your business frees up funds so you can continue to do your daily business. You also have the freedom to put down as little or as much as you would like as an initial payment. If you would prefer to pay a larger amount initially then you benefit from lower monthly payments. If you pay a smaller amount upfront then your monthly payments will be larger. However, leasing gives you the flexibility and ability to free up money for your business.

Time-saving

This benefit is often overlooked. But it has to be said, you can save a lot of time by leasing your vehicle, especially if you go through a vehicle broker like OSV.

All you have to do is tell us about your current situation, your requirements and your budget and we’ll do all the legwork for you.

We’ll do the research using the requirements you have given us, negotiate some great deals and then show you what we’ve found. You can choose which one of the options you feel suits your purpose the best and let us know. It’s really that simple.

Running your own business can be time-consuming and this means that you don’t always have time to trawl through a multitude of vehicle websites, looking at specifications to find the right vehicle to suit your needs. If you go to a vehicle broker, like OSV, for help then this is a responsibility that we will take on. Our team of vehicle specialists will do all the hard work for you. This will give you the opportunity to get on with looking after the day-to-day running of your business.

Tax benefits

A huge benefit of business leasing is the tax benefits, these are mainly seen when you look at Contract Hire agreements, making this a hugely popular scheme for businesses.

If you’re a VAT registered business and you have a vehicle on a Contract Hire agreement then you can claim 50% of the VAT back on the monthly and initial rental in your quarterly VAT return. If you don’t use your vehicle for personal journeys then you can claim 100% back.You can also offset the rentals against your monthly tax bill, the percentage of which depends on how much CO₂ your vehicle emits. If it emits less than 110g/km of CO₂ then you can claim 100% back. Any more than that, however, and you can only claim 85% of the rental against profits.

When it comes to how to lease a vehicle for business, as you can see, there are several different types of companies that are eligible to get a business vehicle lease and when a Finance House requests your credit history they will get a lot of information about your business. If your business is new and therefore has a very minimal credit history it’s possible that the Finance House will ask for more documentation but with the help of the information in this article, you’ll be prepared.

At OSV we work with businesses every day helping guide them through the business leasing journey. 

Is Dacia reliable?

Dacia, the comeback kid of the automotive world. Once a communist-state owned company, Dacia is now owned by Renault and thriving, but are Dacia reliable?

You may have noticed how many Dacia’s are currently on the road, there seems to be more and more every day. They are becoming an ever-increasing sight on the UK road network, and for good reason. Their cars are affordable, they are now well built and they are reliable.

That word; reliable. Reliability, or unreliability, has plagued Dacia since the days they were owned by the State, with it not uncommon to see drivers fixing their cars on the side of the road. And though that was a long time ago, and Romania is no longer a communist country, the unreliability tag seems to have stuck.

But is this still the case? Is Dacia still as unreliable as they once were?

In this article, we look at everything to do with reliability and Dacia, including comparing it to some of its main rivals.

Is Dacia unreliable?

Contrary to popular belief, Dacia’s are pretty reliable. In fact, they are very reliable. The AutoExpress Driver Power survey of 2016 put Dacia in third place for dependability, with a score of 96.17 out of 100. This was higher than Toyota and Honda. The only two that beat it were Tesla and Lexus. For a budget car brand, that’s extremely impressive going. Owner reviews are just as good. Both the Duster and Sandero receive an average of 87.83% on AutoExpress, with the reliability coming in as the highest ranking. The reviews on carbuyer are mainly positive, with a few negative reviews thrown in there. But overall, drivers seem to be very happy with their Dacia’s. However, there were reports of rust a few years ago. There were reports from customers about issues with rust on the Dacia Dusters. As a response, Dacia instigated a fix and offered an inspection and a free repair for the affected vehicles.

It was rumoured to be the reason that Dacia moved their production from India to Romania, where they already produced their left-hand drive cars. However, Dacia said that this was not the case and it was purely coincidental. Regardless, there was an issue with rust a few years ago. However, that seems to have been cleared up and Dacia is currently on the top of their game when it comes to reliability.

Why are Dacia reliable?

These results may come as a bit of a shock to some, as it is widely assumed that Dacia produces unreliable cars.

One of the reasons Dacia have been considered unreliable is because at one point in their history, they were. But as we mentioned before, this was in communist Romania, a country that was shut off from the rest of the West and therefore lacked the technology and had yet to develop their own technology to improve their cars. That’s essentially the reason they were so unreliable. But Romania hasn’t been communist since the revolution in 1989, so why do people still think Dacia aren’t reliable?

Possibly because they are so cheap. Dacia produces some of the cheapest cars on the market and definitely produce the cheapest SUV’s. In fact, some of their SUV’s cost less than many city cars. So people assume that cheap = unreliable. Yet, this has been disproven several times in regards to several different things, particularly with cars. It is assumed that the more executive and expensive the car, the more reliable. When this is not the case at all. And one of the reasons this is not the case is because of the amount of technology that is in these cars. While this extra tech is great for drivers and it makes the car more appealing, it is not always reliable. Many have put unreliability down to an increase in complicated technology that is prone to problems. Looking to get an affordable SUV? Watch our in-depth review of the Dacia Duster for more information about the modern and robust SUV.

And Dacia? Well, Dacia doesn’t have any of that. Dacia is all about keeping costs low, meaning that you won’t be getting a lot of complex technology. The drivers know this, and it’s why people choose Dacia’s. But this means that there are no problems because there is no complex technology to go wrong. That’s not to say there isn’t technology onboard a Dacia, it’s just not as advanced as the tech you would see in an Audi or Mercedes. And that simply means that they are more reliable.

Not only that, but they are also cheap to repair. The parts are common and easy to source, meaning that you won’t have to fork out a fortune for the repair costs.

So there are a few reasons why Dacia are reliable. Considering getting a Dacia Sandero? Check out our full Youtube review to learn more about the tough yet comfortable hatchback.

How reliable are consumer reports and surveys?

It’s at this point in the article where we justify our use of consumer reports and surveys in determining reliability.

Consumer surveys are accurate because it’s owner feedback. This means that those who drive the car every day are able to give feedback on how dependable, or not dependable, their car is. We also use reports from the likes of WarrantyDirect, which provide extended warranties for many makes and models. When someone makes a claim, they can record this. They then use this data to come to an informed conclusion about which makes and models are the most reliable and which ones aren’t.

The only problem with customer surveys is that you can’t know the longevity of a brand new car. Therefore, you won’t get a completely accurate judgement until the car is a few years old. Many, such as J.D Power, use predicted dependability, which is usually quite accurate.

Overall, using consumer surveys are a good and unbiased way of knowing how reliable a car is.

Common Dacia problems to look out for

When you are looking at a car, particularly a used one, then there are things that you should be looking out for. Some of the common problems for Dacia include;

• Faults with the catalytic converter
• Problems with the engine management systems
  • These aren’t too common, but some have been reported.
• Rust
  • As we mentioned earlier, rust has been a problem for Dacia. If you’re looking at a used Dacia, then make sure that you check carefully for any signs of rust.

If you are looking at a used Dacia, then it’s worth asking the person selling if they have had some of these problems.

Dacia vs. Peugeot vs. Renault

It can be difficult to decide who to compare Dacia to in terms of rivals. In this section of the article, we have gone for brands that produce cars similar to the Duster rather than going by the price.

Both Renault and Peugeot also fare pretty well in terms of reliability. However, in the survey that put Dacia in third place, Renault and Peugeot were quite a bit further down the list. Renault came 11th, with a score of 93.72 and Peugeot were 13th, with a score of 93.09. These aren’t bad scores by any means, and they’ve done considerably better than many luxury brands, but they don’t quite meet Dacia’s third place. However, in a survey by Motoring Research, Peugeot came out on top in 5th place with 92 problems per 100 vehicles. This is compared to Renault who came 14th with 116 problems per 100 vehicles. And Dacia? Well, Dacia didn’t fare too well in this survey at all, coming in at 23rd with 174 problems per 100 vehicles. Which is quite a lot. However, this was in 2016, and the AutoExpress survey was this year (2017). So I think we can say that it averages out and it seems that these brands are pretty reliable. So, if you’re looking for reliability and price, then Dacia is the manufacturer for you.

In conclusion, Dacia is surprisingly reliable. This is considering their past reputation and the fact that their main focus is keeping costs as low as possible. They are so reliable that AutoExpress have put them third in their recent reliability table. That said, their main rivals, Peugeot and Renault, have been reliable for longer. Whether this means that they are actually more reliable remains to be seen. So, if you have faith in the most recent reliability tests, need a family car and want value for money, then a Dacia is perfect for you.

Self-employed car finance: The 5 things you need to know

Have you just started up your own business? Are you self-employed and looking for a new vehicle that is going to get you to jobs? Perhaps you’re unsure as to whether a vehicle lease is something available to you.

When you’re looking for the ideal vehicle to help your business grow we know that you’ll have questions. We are sure that the question at the top of your list is going to be “Can I lease a vehicle if I’m self-employed?”.

We know that the idea of getting a lease can be rather daunting, finding the right vehicle, applying for the lease, going through the paperwork. And we can help you with all of that. At OSV we can take all the stress of the process away, helping you to get the right vehicle for your business.

1. Can I get car finance if I am self-employed?

Do you run your own business and are wondering if you’re eligible to get car finance? Perhaps you’re looking for a vehicle that you can use to deliver your wares or something that you can use to travel to your next plumbing job.

Whatever your business may be, the chances are you’re looking at this and want to know if, as you’re self-employed, you qualify for car finance through your business. The answer to that question is that yes, you can lease a vehicle through your business.

2. How does self-employed car finance work?

Believe it or not, if you’re applying for car finance through your business, even if you’re self-employed, the process is the same as if you were applying through a larger business. 

The first step is to put together a list of what you need from your vehicle, whether you need a van for transporting plumbing materials or a car to impress clients at business meetings.

Now that you have your list of wants and needs where your new vehicle is concerned, get in touch with a vehicle broker, like OSV. We can help you to find a vehicle that meets your business needs and budget.

When you speak with us we can talk you through your contract options. How long you want the vehicle for, what type of contract you want and how the leasing journey will work.

So, how long do you want your vehicle for? Do you want to upgrade regularly? If so, how often?

Once you’ve done all of that it’s time to think about the type of contract you want. There are two options when it comes to business leasing, contract hire and finance lease. We’ll come back to these two options later in the article.

Credit checks

As with any other finance application, the Finance House will carry out a credit check on your business to see if it is able to meet the monthly payments for the vehicle and if you pass this check it’s possible they will ask you to provide them with more information. This includes:

• Your latest set of accounts – which will hopefully show that your business has a positive net worth
• Proof of address
• Proof of ID

You may also be asked to provide a copy of your most recent bank statements.

As long as your credit score is good and the Finance House is confident that you will be able to meet the monthly payments for your lease, then there is no reason why you shouldn’t qualify for vehicle finance.

3. Self-employed car finance and company car tax

This is the moment where we have great news for you if you’re a sole trader or self-employed.

As, if you are, you won’t be liable for any Company Car or Company Van Tax. This definitely works in your favour, but you may be wondering why you don’t have to pay it. Essentially, it’s because, as a sole trader, you and your business aren’t judged as separate entities.

How does Company Car Tax work?

Company Car Tax works on a sliding rate. The amount you’ll pay is worked out using the following information:

• The amount of CO₂ the vehicle you drive emits
• the P11d value of the vehicle
• the tax bracket you’re in

If you would like to find out even more about Company Car Tax we have an article outlining all the calculations, costs for this year and going forward.

You can benefit from massive reductions in Company Car Tax if you choose an electric vehicle.

How does Company Van Tax work?

When it comes to vans, the tax works on a fixed rate, which can be hugely beneficial, depending on the vans you choose. Cars work on a sliding rate that depends on the amount of CO₂ that the car emits.

If you’re driving a petrol or diesel van then Company Van Tax works on a fixed rate of £3,500. Your annual payments will depend on the personal tax bracket you are in, so if you’re in the 20% bracket you’ll pay 20% of £3,500, which is £700 per year, or £58.34 per month. Of course, if you’re in the 40% tax bracket then you will be paying 40% of £3,500.

If you’ve decided to drive an electric van then, as of April 2021, Company Van tax has been reduced to £0 in an effort to encourage more businesses to drive electric. We have put together an entire section on the benefits of electric vehicles. We have also written a comprehensive article that covers everything you need to know about Company Van Tax if you have more questions.

4. Self-employed car finance with no credit history

If you’ve only just started your business or you don’t have a long credit history it can be a little more difficult to get approval, but it’s not impossible.

As your credit history is the way that the Finance House checks that your business will be able to meet the regular monthly payments, they will ask you to provide more information in order to help your application for finance. As a new business, there  are some things that you can do in order to improve your chances of getting your finance application approved and these include providing the Finance House with the following:

• Bank statements that show positive net worth (from the previous three months)
• Valid address(es) and identification for the company director(s)
• An opening balance sheet

You may also be asked to provide them with a realistic cash flow forecast.

The more information you provide, the easier it will be for them to understand your situation and if you are able to meet the monthly lease payments consistently.

5. The best car finance for the self-employed

We briefly touched on the finance options available earlier in the article. As a business, the two best leases for you to choose from are Contract Hire and Finance Lease.

If you decide that you would like to get your vehicle on contract hire then you have the vehicle for a set period of time (between 1 and 4 years – though if you get a van this can be extended to 5 years) and have a pre-agreed annual mileage. At the end of the agreement, you return the vehicle at no additional cost (subject to mileage and condition).

Of course, if you’re looking for vehicle finance that has no mileage or condition restrictions then Finance Lease may be the better option for you. At the start of the agreement, you set a balloon payment amount (this depends on the size of your initial payment and how much you want to pay for the duration of the lease. You lease the vehicle for between 1 and 4 years (5 if it’s a van) and when the agreement ends you settle the balloon payment by selling it to a third party. 

Both of these finance options have been designed with businesses in mind and come with pros and cons. 

If you’re looking for a van and unlimited mileage is an important item on your requirement list then Finance Lease is the better choice, while the more traditional contract hire is perfect if you’re looking for a vehicle that you can drive, maintain and hand back at the end of your agreement.

Conclusion: What to do now

As you can see, if you’re self-employed or have just started a new company, you can still qualify for a vehicle lease through your business.

Sure, you may have to provide the Finance House with more documents than you would if you decided to lease privately, but this is standard for any business.

Of course, there is an added bonus if you’re a Sole Trader in that you won’t have to pay any Company Car Tax on a vehicle leased for your business. 

Now that you know you’re eligible to apply for a business lease as someone who is self-employed, the next step to getting your new business vehicle is just a phone call away.

What are the best vans?

Have you just started the search for a new van to lease? Do you want something that meets all your requirements? Have you been looking for something that can transport goods or is it a vehicle you’re going to use to travel with your family to the Norfolk Broads? There are so many different vans to choose from and it can be difficult to know where to start. How can you possibly find the best van when you don’t even know what you’re looking for.

Whether you run a business and are looking to start a delivery service or need to replace your existing vehicle, or you’re going to take the family on a camping trip, there is an ideal van out there and in this article we’re going to help you find it.

What are the best vans for small business?

So, you’re looking for a new van for your business. Perhaps you’re expanding your services, or maybe you’re replacing a van you’ve had for a while. Let’s take a look at the vans that are perfect for a small business whether you’re starting out or growing.

Volkswagen Caddy Cargo

The Volkswagen Caddy has been produced by VW since 1980, though it wasn’t introduced to the UK until 1982. However, it was originally only produced as an MPV. In 2010 that changed and the Caddy Panel or Caddy Cargo as it is known in the UK was released. It is likely familiar to anyone who has ever seen a British Gas van as Volkswagen has had a contract to supply the utility company with vehicles since 2007 – this was renewed in 2015.

The Caddy Cargo was given a huge facelift in 2021 and with the facelift comes a new name, the Caddy Cargo Commerce. It also has three brand new trims, the Cargo Commerce, Commerce Plus and Commerce Pro. As standard, all Caddy Cargo vans come with Autonomous Emergency Braking, Cruise Control and a handy multi-function steering wheel.

Pros

• Plenty of safety features
• Incredibly comfortable interior which can be vital if you drive it a lot
• Great tech options, depending on your choice of trim
• Fantastic choice if you’re not going to be transporting too much
• Easy to put items in as load space is lower than many other vans
• Great modern infotainment system similar to most other Volkswagen models

Cons

• Payload isn’t as great as other small vans, at just 687kg
• Storage space isn’t the most practical
• Can be rather loud in the cabin

If you’re not looking to transport a bathtub, paving slabs or other heavy items then this van is absolutely perfect. In fact, it’s ideal if you’re going to be spending hours on the road at a time making deliveries or going to multiple locations in a day to make repairs this is definitely a van to look at. When you’re in a vehicle all day it really needs to be comfortable.

Mercedes Citan

Being the creators of the first-ever motorised vans, it wouldn’t be a complete list without a Mercedes. The manufacturer produces several different vans and the Citan, their smallest commercial vehicle is ideal for a small or new business. With a payload of up to 661kg, and comfortable seating in the front for driver and passenger, it’s a little on the small side in comparison with other vehicles. However,  if you’re looking for something practical, without all the trimmings, then the Citan is definitely a vehicle to consider.

As we’ve already mentioned, the Mercedes Citan doesn’t have the highest payload capacity of the small vans, but there are some advantages to its stature, and one of them is the fact that it is much easier to park. If, for example, you’re delivering packages or flowers in a busy city, parking is at a premium. When transporting light goods such as flowers or perhaps cakes you want to be closer to the end customer to ensure no damage occurs. With a small van, this becomes a much easier prospect.

Pros

• You have a choice of three different wheelbase lengths
• Very comfortable interior
• It’s nice to look at

Cons

• One of the more expensive options 
• Low payload of 661kg

Of course, it wouldn’t be a Mercedes if there weren’t upgrade options, and whether that’s parking sensors or an ISOFIX fitting, Mercedes gives you that choice. The Citan definitely isn’t lacking when it comes to customisation options.

If you think that the Citan meets your needs, call us or schedule a call with us now to go over your wish list and let us help you find the right option.

Best vans for towing

Are you looking for something that can tow a concrete mixer or a caravan?  Whatever your towing requirements it’s important to select the best vehicle for your needs. At OSV, that’s one of the things we always pride ourselves on, we want to find the vehicle that meets your needs, from towing to legroom.

Ford Transit

The Ford Transit has been on the market since 1965, so it’s an old boy on the block. It’s also one of the most popular vans available for sale. In fact, in 2021 it’s the second highest-selling van in the UK, only being beaten out by the Ford Transit Custom.

So, why is it that here we’re talking about the Ford Transit? Well, this van is one to consider if you’re looking for one that can carry a generous interior payload, as well as having the capacity to tow a pretty good weight.

Payload: 969 – 2,457kg

Tow capacity: 1,650 – 3,600kg (braked)

The maximum tow capacity offered by the Ford Transit is specific to a single trim of the van, the Heavy Duty rear-wheel-drive model. However, if you’re looking for the highest combination of payload and towing capacity then it’s important to know that the Heavy Duty model has a payload maximum of just 969kg.

Pros

• Flexible configuration options – not as many as the Sprinter, but enough to make it easy to find one that suits your needs
• Quiet and comfortable interior – some vans can have quite a lot of cabin noise
• Low step-in height which is ideal for those of a shorter stature
• The side sliding door opens to an incredibly impressive 1.3 metres
• Load space is over 3 metres long

Cons

• Higher towing capacity costs you interior payload
• Some configurations have more cabin noise than others

The Ford Transit is probably one of the vans you’re most used to seeing on UK roads, they are the chosen transport of the ubiquitous white van man. But that’s not necessarily a bad thing.

If you’re a landscape gardener this van is ideal as you can load it up with all the paving slabs for a new patio or rocks for that feature rockery your new client wants. The 3-metre loading length of the van makes this perfect transport if your business is decorating, there’s plenty of room to slide in a couple of ladders, and all the wallpaper, paint and brushes you could need to complete multiple jobs.

IVECO Daily

Believe it or not, the IVECO Daily has been around since 1978, though it was originally marketed as the Fiat Daily until 1983. Since 1978 over 3 million units have been sold globally.

There are several different models of the Daily available and each has advantages depending on your needs. If you’re looking for something that can carry a payload of up to 2,700kg then take a look at the twin-wheel model that has QUAD-TOR suspension.

There is also a Daily CrewVan that is perfect if you’re travelling with a small team and some equipment to a job site.

Payload: 1,900kg – 2,700kg

Tow capacity: Up to 3,500kg (braked)

Pros

• Largest panel van on the UK market
• Simple design very large load interior

Cons

• The vans with a GVW (gross vehicle weight) of more than 3.5 tonnes need you to have a special driving licence
• The build and interior are incredibly basic

The IVECO Daily has a very similar design to a truck and that harks back to the days when that is all IVECO produced. The Daily is one of the only panel vans where the chassis and body are two separate parts that are bolted together.

That having been said, if you’re in the business of transporting anything bulky, heavy or both then this is one of the best vans on the market thanks to the higher payload and towing capability.

If you’re interested in finding out more about the deals available on the IVECO Daily, get in touch with our vehicle experts today on 01903 538835.

Peugeot Boxer

The Peugeot Boxer is the largest in the company’s range of vans. There are several different trims that offer different options depending on your needs. Whatever your requirements, there is a Boxer (or another van in their range) to meet them.

If you want something that doesn’t rely on petrol or diesel, then the new e-Boxer is perfect. Depending on whether you select the 37kWh or the 70kWh you can travel between 73 and 139 miles according to official WLTP tests. Unfortunately, the e-Boxer has no towing capacity.

Of course, you want to find out more about payload and towing weights, so let’s take a look at the Boxer’s impressive stats.

Payload: 1,125 – 1,870kg

Tow capacity: 2,500 – 3,000kg (braked)

Pros

• Generous payload and towing capacity
• Large loading area, wide-opening rear and side doors
• Great value for the size of the vehicle

Cons

• Quite a heavy vehicle can make for an exhausting drive over long distances
• The cabin can be quite loud when driving on the motorway
• Average fuel economy depending on the engine chosen, ranging from 26 to 35 miles per gallon

There are so many options when it comes to the Peugeot Boxer, whatever your business. The generous payload makes it great for landscapers, builders, carpenters and plumbers, but it’s also perfect if you’re someone who makes deliveries all day for Amazon or another delivery company. It’s also a great van for conversions so would be ideal if you wanted to convert it into a refrigerated van for transporting perishable goods such as meat and ice cream.

If you want to find out more about the options available when it comes to the Peugeot Boxer, call us now on 01903 538835 and talk your van needs through with one of our vehicle specialists.

Best vans for a family

Okay, so why are we talking about vans for a family here? As we’ve already established, vans aren’t just for businesses. Large families are a thing and if you need something practical and spacious that doesn’t leave anyone out then it’s definitely worth looking at a van. We have already mentioned that several of the vans in this article are also sold as crew vans, and if you’ve got 7 kids, you’ve got a ready-made crew.

Ford Transit Kombi

The Ford Transit Kombi is another vehicle that has space for 9. Like the Vito, it’s available in multiple lengths and heights so you can easily select the one that meets your specific needs. If, for example, you use your van for a big school run and luggage storage is something you are concerned about, then the short-wheelbase option is perfect.

If you tend to take your family on holidays with a tent and camping gear plus luggage, then it’s worth taking a look at the long-wheelbase option.

Pros

• Easy to drive
• Comfortable seating
• Stylish looking family vehicle
• Servicing costs are relatively low

Cons

• Fuel economy is not the best for a family car – between 30 to 36 miles per gallon

If you’ve got a bigger family then the 9-seat mini-bus style you get from the Ford Transit Kombi is exactly what you’re looking for. If you invest a little bit more and get the long-wheelbase model then you’re going to have room to pack a few suitcases or, better still, some decent camping equipment for a fantastic staycation.

Want to find out more about how the Ford Transit Kombi could be just the MPV you’re looking for then give our friendly vehicle specialists a call on 01903 538835 and they can help.

Citroen Berlingo

The Citroen Berlingo is probably one of the most commonly spotted MPVs on British roads. It has a rugged outward appearance. The Berlingo is practical, great for weekend trips whether you’re heading for a bike ride or out on the water with a kayak.

The Berlingo, like the e-NV200, is smaller than the other vans we have mentioned, but it’s a practical MPV that has up to 7 seats and is one of the best vans for a slightly bigger family.

Pros

• Great build quality
• Comfortable interior for driver and passengers
• Decent fuel economy – between 36 to 57 miles per gallon depending on engine choice

Cons

• The build style is not to everyone’s taste
• It is very definitely a van disguised as an MPV

No matter what, the Berlingo is a popular vehicle, reliable, sturdy and a decent amount of storage space, so if you’re looking for something that can cope with rugged terrain or a campsite then you’re in luck.

If you’d like to find out more about why the Berlingo could be the MPV you’re looking for, call us and we can help you find the right vehicle to meet your needs.

As you can see from the list we have put together, there are many vans available suitable for multiple purposes. Whether you have or are setting up a business that delivers flowers or you’re a landscaper needing something sturdy enough to transport concrete slabs we’ve got you covered. Of course, it may be that you’re simply looking for a vehicle large enough for a bigger family, there are plenty of options available.

What is the top gardening van in the UK?

Are you a gardener? Have you just started a search for the next vehicle that will help you to grow your business? 

Whether you’re a small domestic gardener looking after a few clients, so only need to transport smaller tools, such as a push lawnmower and general tools of the trade to a fully-fledged grounds maintenance manager looking after an estate, it’s important to select the van that fits your needs.

There is such a variety of vans available on the market it can be really difficult to know where to start. And that’s where we come in.

Gardening can seem like an incredibly relaxing profession, in the fresh air, just you and the plants for company. It can also be a very profitable one if you provide a great service to your customers and they help you to spread the word.

Of course, one thing that can help you to build a popular business is reliability.

Choosing the right van to get you from A to B is vital when you are trying to build and maintain a reputation as a gardening service that can be depended upon. You don’t want to break down and be unable to get to your customers.

As with anything, there isn’t a single right answer when it comes to which van is best for your business, it depends entirely upon your specific needs. 

Buying or leasing a gardening van is a big investment, so you need to make sure to choose a model that can offer you the best value for money. If you don’t do this then you will find you’re eating into your profits, which in turn could affect your business profitability and your pricing structure.

You need a van that can offer you the perfect blend of quality, comfort – after all if you’re driving around every day from one client to the next the last thing you want is an aching back or a sore posterior – and of course performance.

What should you consider when selecting a gardening van?

When you are choosing a vehicle to use as a gardening van there are many factors you need to take into consideration, including things like fuel economy, reliability and comfort. However, the two things that you should put at the top of your list when you start your search are size and payload as these will affect the sort of work you are able to carry out, the equipment you can transport and, if your client base is domestic customers, how easy it is to park near their properties.

Size

When you first start thinking about what you need for your new business it’s incredibly tempting to make the most logical move and get a very big van. However, if you don’t need all that space then the decision would end up costing you more in fuel and, as mentioned before, cause problems with parking if you are working in areas where parking is at a premium.

Of course, if you go to the other extreme and look at a van that is too small then you may find issues with transporting everything you need in order to carry out your job, or even worse it will be piled into the vehicle in such a way that it’s a chore actually reaching the hose or spade when it’s needed.

As with many other jobs, there is no one size of van that’s going to be right for every single gardener, as it’s dependent on the type of work you carry out.

We would recommend you put together a list of the services you offer, and the equipment you will be transporting. Once you have this, plus any other requirements you have for your gardening van, the process of finding the right van for your gardening business can begin.

Payload

Gardening is a professional industry so you need to choose a model where the payload matches your business requirements. 

So, what is a payload? Essentially this is the total amount of weight a van is legally allowed to carry – and, even more importantly, the amount it can carry safely when being driven. If you do end up exceeding the legal limit that a van can transport then you will find yourself facing fines and penalties on your licence.

The type of van you end up choosing will depend greatly on the type of gardening work you do. If, for example, you’re a landscape gardener then you could well find yourself transporting decking, patio slabs and rocks on a daily basis. These weigh a lot more than spades, buckets and a push lawnmower.

It’s important that you take all this into account when selecting your vehicle. If the payload is not high enough then you could find yourself in trouble when you start packing those concrete slabs in the back!

Top 5 gardening vans

Citroen Berlingo Van

We know, most often people will look at the Citroen Berlingo and think MPV. But there is also a Berlingo van and it’s a nice practically sized vehicle that is perfect for the smaller business.

The fact that it’s rather compact makes it ideal if you’re working in the city, relatively easy to park in comparison with much larger vans.

When it comes to choosing the right Berlingo van for your needs there are 8 different configurations to choose from.

Payload ranges from 660kg in the base model Berlingo M 650 to 1,009kg in the Berlingo Van M 1000.

Of course, it’s not only payload that’s important when it comes to a gardening van. It’s all very well if the van can carry all the heavy equipment, but can it all fit inside? The Berlingo also comes in several different heights and widths, which will make it easier to identify which of these models is the ideal one for your business or not. The smallest starts with a load length of three metres and the longest is almost three and a half metres. It’s not that much, but it can make a difference.

Vauxhall Vivaro

If you’re looking for fuel economy then the Vauxhall Vivaro should definitely be on your list. It can get up to an impressive 44.8 miles per gallon, which is fantastic when you’re looking at how far you can travel on a single tank of diesel.

The Vivaro was first introduced in 2001, and the van is currently in its third generation, which was unveiled in 2019.

This is the ideal medium-sized van with a very generous payload of between 1,415 and 1,548 kg depending on the wheelbase length you select. The short wheelbase option has a load length of 2.5 metres, while the long-wheelbase option comes with an additional 30 centimetres at 2.8 metres.

If you’re thinking about using it as a gardening van then you’ll definitely be interested in the great accessibility offered by the side-loading door, which can make it that much easier if you’re in a location with smaller parking spaces.

Volkswagen Transporter

An excellent medium-sized van choice that is ideal as a gardening van, whether you’re a landscaper or a florist. The original Transporter was released in 1950. However, the van as we know it today was first seen in 1990 with the introduction of the Transporter T4. The fact that it is an incredibly reliable vehicle has made it an ideal choice for businesses.

In 2015 the Transporter was given a facelift and the T6 was born, with even more changes introduced in 2019 when the T6.1 was unveiled, though it didn’t become available for sale until early 2020. During the update, the T6.1 was given a new interior as well as upgraded power-steering and more improved efficiency.

The Volkswagen Transporter T6.1 comes in two different trims, the Startline and the Highline. 

Depending on the model you select you get between 713 and 1,309 kg payload. They have a flexible load space and multiple storage options.

In 2021 the Transporter T6.1 was presented with the WhatCar? Award for Best Value for Ownership Costs as well as a gold medal for safety by Euro NCAP.

Ford Ranger

Unlike the other vans on this list so far, the Ford Ranger is a pick-up truck. With three different body styles to choose from you won’t be short of options. And to top it off, depending on the option you select, it can turn into a family vehicle when you’re not using it for business.

The Ford Ranger is definitely an all-purpose vehicle, which makes it an ideal gardening van.

If you’re someone who is looking to transport heavy goods on a regular basis, then the Ranger is a great choice, with a payload of up to 1,252 kg.

So, what are the three options? 

First is the regular cab, this is a two-seater, stripped back, basic with a generous payload thanks to its extended load bed. Every single inch of this vehicle has been designed for practicality. 

The second option is the super cab. This has another row of seats so you can fit 4 people in the cab, which makes it ideal when you need to take more people to the job site. Of course, with the additional seats comes a loss of cargo space, which is why the load is a little lower, at 1,197kg.

The final option is the one that is ideal if you want to use the pick-up for other things once the working day is done. The double-cab has all the comfort you’d associate with any other passenger vehicle. Though the load space has been reduced by almost half in comparison with the more basic regular cab option, the payload itself has only dropped a little, so it’s still impressive at 1,140 kg.

If you want to maximise the load space when you select the vehicle for your gardening business and have your heart set on a pick-up, then the regular cab is the way to go. Of course, they’re all a great choice. Even better, all Ford Ranger builds have the bonus of a whopping 3,500 kg trailer capacity.

Ford Transit

We couldn’t finish this article without giving a mention to one of the most popular independent trader vans on the market, the Ford Transit.

This van is an icon that has been on the market since 1965 (just a few years less than the VW Transporter).

It’s a very popular van amongst sole traders and large businesses alike due to its practicality, flexibility and generous load space.

There are so many build options when you take a look at the Transit that going into each one would take a good few hours to read. 

If you’re a landscaper and need to transport incredibly heavy cargo then this is definitely one of the vehicles you need to consider, with its incredibly versatile payload of up to 2,457 kg (if you select the brand new 5-Tonne model) and a load length of up to 4.2 metres which is definitely long enough to fit a decent amount of equipment. 

The fact that there are so many different configurations to choose from makes the Ford Transit a great option as a gardening van for your business.

As you can see, there are many different vans with multiple configurations to choose from when you begin your journey as a gardener, whether domestic or landscape. Before you make your decision on the right van to lease there are many things that you need to consider, from equipment you’ll be using to the distance you’ll be travelling to visit clients. All of these factors are important when you start looking at a new van for your gardening business. The vans we have mentioned above are just a few of our recommendations, there are many more that will fit your needs and budget and we can always talk you through them when you call.

What are the top 7 refrigerated vans?

Does your business make deliveries? Are they local? National? Chances are that if deliveries are part of your business then, at some point, you’ll be in need of a van. Of course, searching for a vehicle that fits your needs isn’t a quick process, and that’s where we come in.

When it comes to searching for a van whether you’re looking for refrigerated vans to transport meat if you’re a butcher or deli or one that can transport more fragile goods like flowers or cakes, it can take time to find. We can help take some of the stress away, whether that’s because we do all the searching for you, or help you with the frustration that can be the paperwork.

What should you consider when looking at new refrigerated vans?

When it comes to choosing a new delivery van for your business there are multiple factors to consider including what your vehicle needs to be capable of in order to be the right one for your needs.

Cost

No matter whether you’re looking at a van or a food mixer, cost is a huge deciding factor for every high-value purchase you make. 

It may seem that selecting a lower-cost vehicle, however, going cheap very rarely proves to be cost-effective in the long run when you take into account the number of repairs you will end up paying for.

That having been said, investing in a van that is incredibly expensive doesn’t always mean you’re getting the best value for your money either.

As we’ve already said, buying a new van is a significant investment for your business so you want to ensure that you’re getting the best vehicle for your budget. Remember, there are few things worse than acting on impulse only to find that you’ve made a huge mistake soon after, which is why it’s important to carefully consider your requirements before making a commitment.

Temperature Range

This is probably the most important thing to consider when you’re buying a refrigerated vehicle. The last thing you want to discover is that your perishable produce (whether that’s meat, flowers or cake) has been damaged as the temperature you need isn’t properly maintained.

Since the temperature range varies from one vehicle to another, it’s important to assess the temperature that you want your vehicle to reach. There are four different types of refrigerated van and each one has a different temperature range. Knowing the temperature range that you require for your business will help you to determine which conversion option you need to select when you come to get your van.

Insulation-only

An insulation-only van can maintain the chilled temperature of non-perishable goods. As an insulated van isn’t refrigerated it is not suitable for transporting food or any other produce that requires specific temperature control.

Typically, an insulated van is one where insulating material such as styrofoam or polystyrene is used in the loading bay of the van in order to keep warmth out and cool in.

An insulation-only van is ideal if you’re a florist transporting displays or delivering bouquets to customers.

Chiller conversion

A chiller van is actually relatively similar to the insulation-only van, with a thick lining of styrofoam or polystyrene, but for one thing, it also contains a chiller. The inclusion of the chiller unit means that, unlike the insulation-only vans, it can chill food as well as ensure perishable items maintain a temperature between 0 and 8 degrees centigrade.

This sort of conversion van is ideal if you are planning on travelling with your goods for any length of time. Given the temperatures it can maintain, it’s ideal for transporting drinks and dairy produce (including milk, butter and cheese).

Semi-Freezer conversion van

This van is ideal if the perishables you’re transporting need to stay frozen. A semi-freezer conversion can reach temperatures as low as -15.

As well as being able to maintain these temperatures, it also has some additional features which include:

• Reverse cycle defrost – which defrosts your produce by reversing the actions of the condenser and evaporator
• Hot gas defrost – which uses the hot gases produced in the freezer system to quickly defrost your goods.

As a semi-freezer conversion van can maintain temperatures between -10 and -15 degrees centigrade without issue, this is the perfect van for transporting frozen goods.

Full-Freezer conversion van

A full-freezer conversion van is similar to the semi-freezer in that it has a thick layer of insulation that is the same depth (around 75mm) as well as the same defrosting capabilities. This means that your products can be quickly and easily defrosted using either the reverse cycle or the hot gas defrost functions.

The biggest difference between the full- and semi-freezer conversions is that the full-freezer conversion has reinforced rear and side doors which means that it can reach much cooler temperatures. In fact, it can reach temperatures of up to -20 degrees centigrade.

If you’re looking to reach temperatures of -25 degrees then you will need to consider getting a van with more insulation – up to 10cm (100mm) thick and a heavier exterior door in order to ensure that the temperature inside the van doesn’t fluctuate.

The ideal temperature for transporting frozen meat, poultry, fish and other deep-frozen goods is between -20 to -25 degrees centigrade.

Size

When you start your search for a van, it’s helpful to know the size of the van that caters to your specific needs. While it may seem logical to look at only your current needs, you should consider your future needs too. This van is a significant business investment so planning for the future is important.

How big do you see your business becoming over the next few years? If you can see your business expanding in the future then it’s likely you’ll need a vehicle with larger load space. 

Purchasing a refrigerated van that is even a little bigger than what you presently need would be a smart investment in the future plans for your business.

Fuel Efficiency

Driving a refrigerated van can be quite expensive. This means that when it comes to assessing the fuel efficiency of a vehicle (with the refrigerated aspect both on and off) should be one of the deciding factors that’s close to the top of your list when you start your search.

The fuel efficiency of your refrigerated van will depend greatly on the conversion type you have chosen for your business. Logically, the insulation only one will have less of an impact on your fuel use than the semi- or full-freezer conversion options.

Technology

As with anything that relies on technology, refrigerated vehicles are constantly evolving. More efficient designs and new technology are continuously being applied and implemented. This is something you need to take into consideration when you’re looking at a new vehicle for your business – or any other purpose. Admittedly, an older vehicle can be retrofitted with newer technology, however, it’s more practical to get a vehicle that was designed with it in mind.

Efficiency

Whether your van is for ice cream, meat or transporting flowers, getting the right one can make a great difference. When you’re going to be using a van for your business it’s important that it’s dependable. The last thing you want is to invest in a van that doesn’t meet these requirements.

Delivery efficiency is an essential part of every delivery business’ success so a refrigerated van that is the correct size will be the key to yours. It’s important to consider the area that you’re going to be covering with your delivery van (or fleet of vans) and whether a large or small van is best suited to the route that it will be travelling.

What are the top refrigerated vans for butchers?

No matter whether you’re delivering meat to private households, catering a large event, or a small local supplier delivering to other small businesses, buying a refrigerated van is the best way to ensure that you deliver safe food to your customers.

It’s true that purchasing or leasing a refrigerated van can be a significant investment, but having one is vital for adhering to various health and safety regulations. Getting a refrigerated van can even help you to expand your existing business – something that can be an advantage during a time when home delivery – both food and other goods – has increased, with the business worth over £11.4 billion. 

If you’re wondering where to start when it comes to purchasing a new vehicle for your business then we’ve done some of the research for you. Have a look at our list of vans below.

Mercedes-Benz Sprinter

The Mercedes Sprinter has been around since 1996 and is one of the most popular and reliable vans on the market. It’s at the top of the list when businesses start looking for a new refrigerated van.

So, what is it that makes it a top van for butchers? A combination of sustainability, impressive fuel economy and great performance make it one of the best vehicles to choose if you’re looking to take your butchery (or catering) business mobile.

Three different versions of the Sprinter are available, as well as the 100% electric eSprinter Progressive.

Payload: 884 – 2,317kg (it varies greatly depending on the trim)

Ford Transit

Having been around since 1965, the Ford Transit is definitely an old guy on the block. It’s also one of the most popular vans available for sale in the UK.

The Ford Transit has quite a spacious interior with a load space that is over 3 metres long, giving you adequate space for insulation and the equipment required to convert it into a refrigerated vehicle. Depending on the trim you select, the payload is incredibly generous.

The van has multiple configuration options, making it easy for you to find the right one appropriate to meet your business needs.

Payload: 969 – 2,457kg

The Ford Transit is probably a van you are incredibly used to seeing on UK roads, as it’s one of the most popular vehicles in the country.

Vauxhall Movano

The Vauxhall Movano is a prize-winner, with incredible records for reliability and with a smart, versatile interior, it’s the perfect van to select when you’re considering converting it into a refrigerated vehicle for your business.

The Movano is a large panel van that allows numerous customisation options to you as the owner. If you’re looking for a high-quality vehicle with a variable load capacity, this van should be on your list.

Payload: 830 – 2,110kg

The Movano is a great choice for a refrigerated van, especially if you’re looking for something with generous and versatile loadspace.

What are the top refrigerated vans for florists?

Are you looking to increase your floristry business’ potential by adding a delivery service? Or perhaps you’re already delivering but the business is expanding or you need to replace your existing vehicle?

As with any business, a reliable van is vital, and when it comes to flowers it’s important that your carefully created arrangements are delivered in the condition they left your premises. Of course, the van will also need to be able to keep your flowers at the right temperature, which is between 1 – 8 degrees centigrade.

No one wants a bouquet of limp roses.

Mercedes Citan

The Citan is considered to be one of the best small vans and it’s a great option for conversion into an insulated vehicle.

This versatile van is ideal for urban deliveries and short journeys. The longest Citan has a load length of just over 2 metres and a payload of up to 661 kg.

The cargo bay is a generous 1.2 metres high and 1.5 metres wide, giving you a lot of space to load and unload your goods.

If you’re going to be spending all day driving then comfort is important and with easily adjustable seats that’s one concern to tick off your list. It also has a generous amount of storage space in the cabin so you’ll have somewhere for your phone, water and coffee in preparation for a long day on the roads.

Fuel economy is another thing that Mercedes took into account when designing the Citan, and with up to 62.8 miles per gallon (tested) you’re not going to be having to make too many pitstops to refuel anything but the coffee mug.

Ford Transit Connect

The Ford Transit Connect has been around for about 20 years and over eight million of them are on roads across the planet. The Transit Connect was also the first European panel van to go on sale in the US. In 2013 the second generation model was introduced, with a comfier interior and a number of new safety features. This second-gen model got a significant facelift in 2019.

With a side-loading door that opens to 82 centimetres and a load space that is 2.1 metres in length, there is plenty of room get this converted into a refrigerated van and use it to carefully load the flowers for a wedding or a generous afternoon of deliveries.

As the Transit Connect has a payload of up to 982kg, it can easily be converted if you’re looking for refrigerated vans, to ensure that your flower deliveries get where they’re going without any heat-associated drooping.

Vauxhall Combo

If you’re looking for something that’s practical and have been thinking about refrigerated vans, as well as giving you the choice of several different configurations and is a 2021 award winner then look no further. The Vauxhall Combo is an award-winning van that has been around since 1993. It’s modelled on the Vauxhall Astravan and is currently in its fourth generation.

As another small van, this is perfect for a small business, especially if you’re looking for something that is spacious enough to have insulation added so it’s ready for your flower deliveries.

There are a few different body style options available, but if you’re looking for the one that’s ideal for our flower delivery business, then we’d definitely recommend you select the Combo Cargo with 1000 kg of payload and a load length of 2.1 metres. 

The Combo is also pretty good when it comes to fuel economy, great if you’re driving around all day and don’t want to keep on stopping to refuel. It can get up to 56 miles to the gallon.

Volkswagen Caddy Cargo

In 2010 the Caddy Cargo van was released in the UK. It’s a popular choice for utility companies including British Gas, which has a contract with Volkswagen for the vehicles. It’s also popular when companies are looking for vehicles to convert into refrigerated vans.

In 2021 the van was given a massive facelift and at the same time it was renamed, so the Caddy Cargo became the Caddy Cargo Commerce, complete with three brand new trims in the form of the Cargo Commerce, Commerce Plus and Commerce Pro. All three different trims come with Autonomous Emergency Braking, Cruise Control and a handy multi-function steering wheel as standard.

The Caddy Cargo has a payload of up to 687kg and a load length of up to 1.8 metres. Depending on your model, you can also get up to 58.2 miles to the gallon, making this a pretty fuel-efficient van.

So, there it is, our list of recommendations if you’re looking for a delivery van that can be converted for refrigeration.

If you don’t see the right one here, there are more to choose from and we can help.

Whatever your business, if you’re looking for the ideal van to convert into something to transport perishable goods, we can help you to find the right vehicle. We have been looking after businesses like yours since 1997 and our team of experienced vehicle specialists have a vast array of knowledge that will help you find exactly what you’re looking for.

What you should know about business leasing

Business leasing is extremely popular, and is one of the most common ways to get a vehicle, or a fleet of vehicles, for a business. In fact, over 91% of new vehicles are now leased rather than purchased in the UK. We have become the 3rd largest leasing market globally, following closely behind China and North America.

The reason business leasing is so popular is because there are a considerable number of benefits that come with business leasing. However, that does not mean that it’s without its pitfalls. There is a lot that goes into business leasing, from the application process to eligibility. So how does a business lease actually work? In this article, we look at a lot of what is involved in a business lease, and we believe you should be aware of these things when you start looking for a new business vehicle.

What is business leasing?

In short, a business lease is an agreement between an established company and a Finance House for a new vehicle. At OSV we help you to find the right vehicle for you, whether it’s a van or a saloon, you make the initial payment (sometimes referred to as a deposit, though it is non-refundable) and you make monthly rental payments for the duration of the contract. 

If you’re looking to get a new vehicle for your business but you know that you would like to reduce the financial risk to your company then Business Contract Hire (which is often referred to as BCH) is an option you should consider.

With a business lease, your company will never actually own the vehicle though you will have use of it for the duration of your agreement. It’s a great option for a business, you have access to the latest models and as a lease can protect you from any financial loss you would experience due to depreciation if you owned the vehicle, it can be a benefit to your balance sheet.

Business car leasing is growing in popularity. According to the British Vehicle Rental and Leasing Association (BVRLA) it has experienced year on year growth.

Choosing to lease vehicles for your business can be a really efficient way to reduce costs for your company. It is flexible and suitable for a number of different company types, from sole traders to limited companies. Not only is leasing a vehicle a great alternative to finance your cars and can prove to be less costly and therefore more beneficial to your business, it’s also a relatively straightforward process that we have considerable experience with. We have put together an article that covers everything you need to be aware of when setting up a business lease agreement.

What vehicle or vehicles to get

One of the biggest decisions you will have to make is what vehicle or fleet of vehicles to get. In fact, it’s probably one of the first decisions you should make when you’re thinking about getting a new vehicle whether it’s for business or personal use.

Traditionally, the company car, especially for management, was a big executive saloon, but with this came a hefty price tag. However, this is no longer the case, and with business leasing, you can now get an executive car that will make the best first impression with the benefit of lower monthly payments.

So, your biggest problem is choosing the vehicle you are going to get. You will need to consider how big you need the vehicle to be, especially if you are getting a van. Other things such as the fuel economy, the emissions and the practicality of the vehicle all come into play.

Also, if you’re considering getting a fleet of vehicles for your business then you will need to decide whether you’re going to give your employees a budget to select their own vehicles, or if you’re going to have a uniform car policy, where all employees drive the same vehicle. When looking at a fleet for your company there are many other things to consider, including whether you want to hire a Fleet Manager to take over the sourcing and management of your company vehicles. 

So the biggest problem? Business leasing has opened up so many more opportunities in terms of what vehicles you and your employees have to choose from when it comes to a company car that it could be seen as too much choice.

The solution

When you’re looking to make a large investment, be it a new vehicle or a new washing machine, research is the best thing. A new vehicle, whether you are leasing or buying, something you will have for a while and the last thing you need is to choose the wrong one and suffer from the dreaded Buyer’s Remorse.

• Read reviews, or watch them on YouTube (this can be a really good way to get a better idea of driving comfort and space if you are unable to arrange a test drive). 
• Check out lists on sites such as Which?. 
• Check reliability data – we have a comprehensive selection of articles on our site that look at vehicle reliability.

We always recommend that you spend a bit of time doing research as this helps you to narrow down your options. This means that when the time comes to talk to a vehicle broker or a dealership, you have a rough idea of what you want and a list of what you don’t.

What businesses are eligible for a business lease?

To some this will seem incredibly logical, however, to others, especially if they are newly set up businesses, it’s something that you may not be aware of. Before you apply for a business lease it’s important to be aware of your company status. Is your business eligible for a business lease?

There are many different types of business that qualify, and in order to help you understand what qualifies your business we have put together a list of eligible businesses that qualify for a business lease.

Documentation and the application process

Once you’ve chosen your vehicle, it’s time for your business to go through the application process. And though many people will have gone through this before, it is possible that you will have questions as to what you can expect.

When you apply for a vehicle lease, be it personal or business, the Finance House will carry out a check on your credit to reassure themselves that you (or your company) will be able to meet the monthly payments. We have put together an article that will guide you through everything you will be asked to provide as part of the credit check during the application process.

Understanding company car tax

If you, or your employees, are using your company vehicles for personal as well as business journeys, then you/they will need to pay Company Car Tax.

Though it sounds both intimidating and confusing, it’s actually quite straightforward. The amount of Company Car Tax you pay depends on the following:

• The P11d value
• Your personal tax bracket
• How much CO₂ the vehicle emits

It should be noted that the higher the CO₂ emissions on a vehicle, the higher the amount of Company Car Tax you’ll need to pay.

You (or your employees) will only be liable for Company Car Tax if the vehicle is being used for personal journeys, this includes the commute to and from work.

Not only that, but if you are leasing or buying vehicles for your employees to use, you will have to pay tax on them. In the eyes of HMRC, a company car is considered to be a perk.

It is also worth being aware that if you are considering purchasing or leasing vans for your business that the tax payable on a van – Company Van Tax – is not worked out differently. We have written an article that will help you work out what you are liable to pay if your business requires vans.

The solution

If you want to ensure that you don’t have to pay Company Car Tax then the simplest way to do this is to restrict the use of the vehicles to business purposes only. This means that they will need to be kept on-site in secure parking facilities on evenings and weekends.

If you would prefer to give your employees flexibility then we would suggest you look at vehicles with low or zero emissions, such as hybrid or 100% electric models in order to reduce the cost of Company Car Tax. When it comes to Company Car Tax it, the lower the emissions, the lower the tax.

Looking at more environmentally-friendly options will not only lower Company Car Tax costs, but will also enhance your company image as you can present yourself as an environmentally conscious and eco-friendly company.

Seeing the contract through to the end

Lease contracts, both business and personal, are not designed to be ended early and this is something that you need to consider carefully when getting vehicles for your staff.

If an employee leaves halfway through the leasing contract, you can’t simply hand the car back to the Finance House with nothing further to pay when your company doesn’t need it anymore.

The solution

Unfortunately, there isn’t much of a solution to this one. We always recommend that you have a contingency plan in place should this particular situation occur.

There are a couple of moves you can make:

1. If you recruit to replace the employee who left, give the vehicle to their replacement
2. Contact the Finance House and try to end the contract early

As we have previously mentioned, we would suggest putting some contingency plans in place so that if this situation does arise you are prepared, otherwise it can cause undue stress.

Keeping all vehicles in good condition

No matter whether it’s a business or personal lease agreement, you always have to keep your vehicle in good condition. This also ensures that you aren’t hit with any unexpected costs when your agreement finishes.

If you have a fleet of company cars, then you will need to ensure that your employees keep their vehicles in a condition that’s in line with the BVRLA Fair Wear and Tear Guide.

If any of the vehicles suffer damage outside of the BVRLA guide then you will be subject to additional charges when the agreement ends.

It is important that you make this clear to your employees and that they understand the guidelines and that they have to keep their vehicle in a good condition.

The solution

Some employers opt for their employees to provide information on their mileage every so often, and the regular services that every lease car is required to have means that the condition of the vehicle and the mileage will be monitored.

It’s also worth explaining to your employees what their responsibilities are when they have a company vehicle. Although it will be clearly set out in their contract, it’s worth carrying out regular checkups on all your vehicles.

Avoiding company politics

As we’ve already mentioned, you’ll have to decide whether you want a uniform policy that means all your employees drive the same vehicle, or if you’re going to give them a specific budget and send them away to find vehicles for themselves.

If you have decided that setting a budget is the way to go, then you’ll have to ensure that you avoid company politics. When we say this we mean that lease prices change quite frequently and when looking for great prices, people tend to look in different places for a great offer. So, while one employee may find a great offer on a Ford Fiesta or Focus, another employee in the same professional tier with the same budget may find a deal on a BMW or Mercedes. It’s possible that these two offers are identical when it comes to price and mileage but they are clearly very different manufacturers. As I’m sure you can imagine, this can cause tension between employees and within the company as a whole.

The solution

The most obvious solution is to have a uniform policy, meaning that all employees in the same tier drive the same make and model of vehicle, with different tiers having different models.

However, if you decide to assign budgets for your teams, then we would recommend you put some guidelines in place regarding makes and models when you allot a budget. Doing this should help to reduce or eliminate any tension or problems that could arise when the time comes for everyone to drive their new cars to the workplace.

As you can see, there are some issues that can arise with business leasing and we would never try to disguise that fact. However, there is a solution to each of these problems.

Some of the issues we have outlined mean that you need to set guidelines in order to remove the potential for disagreements and tension in the workplace. There is also the issue of understanding Company Car Tax and the fact that you will need to see the lease agreement through to the end.

As we have said though, there are solutions to the issues you can encounter and we hope that this article has helped you to formulate a solid plan in your mind.

At OSV, we have over twenty years of experience working with individuals and companies who are leasing vehicles and have a considerable amount of experience in helping our customers to solve any problems they come up against. So, if you have any questions or concerns, please contact us.

Citations

Leasing Broker Federation

BVRLA

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Setting up vehicle leasing for a business

Chances are, if you have a business then you will, at some point, be in a position where you’re setting up vehicle leasing for a business, perhaps for a single vehicle or a fleet.

It’s possible that if this is the case, you may be thinking about getting these vehicles using a business lease. Leasing is an incredibly popular option for businesses and there is a multitude of reasons for this. If you would like to find out more about the benefits of leasing a vehicle for your business then we have a detailed article that looks into this and how leasing can be an advantage for your business.

So, how do you go about setting up a vehicle lease for a business?

At OSV, we work with businesses, helping them to get started on their leasing journeys every day. In this article, we’re going to go over how to set up a vehicle lease for a business.

Setting up vehicle leasing for a business

Firstly, what is a vehicle lease?

In this instance, a vehicle lease is where a business or a corporation have a vehicle, or a fleet of vehicles, for a set period of time while making monthly payments. What happens at the end of the contract depends on the type of contract you decide upon, but we’ll explain more about that later.

When you lease a vehicle you don’t own it. If you want to purchase your vehicle once the contract comes to an end then we recommend you look into Hire Purchase, which is a purchase scheme where you make monthly payments and own the vehicle at the end.

It’s important to know that when you get a vehicle on a lease, you are essentially renting the car or van.

So what is involved in setting up a vehicle lease for your business?

1. Choose your vehicle/vehicles

When it comes to setting up vehicle leasing for a business, the first thing you should do is have a look at what sort of vehicle, or vehicles, you want for your business. If you’re getting a fleet, consider whether you are going to get the same cars for all employees or if you are going to provide more luxury cars for management and a more practical vehicle for other employees.

If you’re looking at vans, maybe you need a fleet, it’s important that you think about how large you need them to be. Do they all need to be the same size, or are some employees in need of something a little larger or smaller than others? If some of your business is in the city will you be looking for an electric van to save money when it comes to the congestion charge, Vehicle Excise Duty and Company Car Tax?

Company Car Tax is definitely something that you need to keep in mind when getting vehicles for you or your employees through your business. If you, or your employees, are going to be using the vehicle(s) for personal errands then Company Car Tax is something that you will have to pay. 

Company Car Tax is calculated using the P11d value of the vehicle, the employee’s personal tax bracket and how much CO₂ the vehicle emits. Therefore, you might want to put a CO₂ limit on the vehicles that you are looking at in order to keep your company car tax costs low.

If you want to find out more about Company Car Tax, we have written a detailed article that will help you figure out everything you need to know.

It’s worth being a little flexible when you’re looking at vehicles; choose two or three makes and models that you would be happy with. That way, when you start to look through the offers that are available you can compare them and choose the ones that are best for you.

2. Decide how long you want the contract for

Typically, lease contracts last for three years. However, they can last for between one and five years, so there is a degree of flexibility.

The shorter your lease contract, the sooner you will need to arrange in order to get a new vehicle or an entire new fleet. You will also have to consider that you will have to put down another initial payment, so you will have to budget for that a lot quicker than you might like.

A common misconception when it comes to leasing is that the longer the contract, the cheaper your monthly payments will be, but this is not always the case. When you lease, the cost is dependent on the depreciation. In order to work out the overall cost of the lease, you work out the difference between the purchase price and the residual value of the vehicle (how much it will be worth at the end of the contract). Divide the total by the number of months of your contract (12, 24, 36, 48) and that will give you the monthly cost you will be required to pay.

Therefore, by the end of a longer contract, the higher the depreciation of the vehicle, due to higher mileage and the age of the car. This could mean that the vehicle actually ends up costing you more.

Of course, this is not always the case, but it is definitely something that you should take into consideration before you make a decision about the length of your contract.

3. Choose your contract

There are two options available to you: Contract Hire and Finance Lease.

Contract Hire is the most popular form of leasing and is what people often refer to when they are talking about leasing.

With Contract Hire, you have your vehicle or vehicles for a set period of time, while making fixed monthly payments. You also have a fixed mileage and are contractually obliged to keep the vehicle in a good condition. This condition is in line with the BVRLA Fair Wear and Tear Guide and is the industry standard for all lease vehicles upon their return.

Once the contract is up, you hand the vehicle or the fleet of vehicles back with nothing more to pay, subject to mileage and condition restrictions. If you do choose a Contract Hire, then you will have to think about how you are going to keep track of the mileage and the condition of the vehicles. Some require their employees to submit their mileage at certain intervals. This way you can keep track of the mileage for each of the vehicles and won’t get any unpleasant surprises when the vehicles are returned.

Finance Lease is a lease option that is far more suited to you if you’re thinking about getting a van or multiple vans, as there are no mileage or condition restrictions. However, it’s also possible to get a car on a Finance Lease if you want to choose this option.

At the start of a Finance Lease, you set a balloon payment, which is a slightly larger payment you make at the end of your contract. The balloon payment depends greatly on how much money you are paying at the start of the contract (your initial payment) and also how much you want your monthly payments to be.

At the end of the contract, you need to find a third-party purchaser to buy the vehicle, or fleet of vehicles from you in order to cover the remaining balloon payment you agreed at the start of the contract.

If you sell the vehicle(s) for more than your outstanding balloon payment then the remaining equity is yours. However, if the reverse is true and the value of your sale is lower than your balloon payment then you will have to make up the difference in order to clear the balance you owe.

4. Dealership versus Vehicle Broker –  which is better?

Now you’ve decided on the vehicle, or vehicles, you want, how long you want the vehicle(s) for and what contract you would prefer to go with, it’s time to talk with someone about making everything happen.

We always recommend that you take a little bit of time to look for the vehicles yourself, rather than sending your employees out to do their own shopping. If you have a large number of vehicles in the company already then it may be that you have a Fleet Manager that will carry out this task for you.

The main reason we would recommend that only one person carry out the task of searching for vehicles is that it is incredibly time-consuming and we are sure you would rather that your employees are carrying out their day-to-day responsibilities.

Contacting a dealership and getting your vehicles through them, whether buying or leasing, is the most traditional method when it comes to getting a new vehicle. This is a more viable option if you know exactly which manufacturer you want to get.

However, due to the fact that dealerships are tied to one brand – rather than many – you are unlikely to get an unbiased opinion and are more limited when it comes to choice if you aren’t sure what you want. A dealership also won’t have access to multiple Finance Houses, so you may not actually get the best offer available.

That all being said, dealerships do have access to discounts that vehicle brokers won’t have due to their special relationship with their dealership brand and the associated Finance Houses.

Many, though not all, vehicle brokers are independent, which means that you are far more likely to get an unbiased opinion about the different manufacturers due to the fact that they aren’t tied contractually to one particular brand. Experienced and established vehicle brokers are also more likely to have access to multiple Finance Houses, which means they could get you a very good deal on your vehicles. At OSV, we have access to 23 different Finance Houses, so are able to help find the best finance option for your business.

If you’re concerned about credit then it’s worth being aware that many vehicle brokers are practised in working with individuals and businesses with bad credit, as well as having access to Finance Houses that work with bad credit.

When it comes to setting up vehicle leasing for a business, you need to ensure that whatever broker you go through is reputable and has the experience and accreditations required to give you the customer service and treatment you deserve, as well as the best solution for you.

OSV is a member of several associations, such as the BVRLA, that ensure we follow the rules as outlined for any business leasing and selling vehicles. If you’d like to know more about what you should look out for when searching for a reputable vehicle broker, we’ve put together an article that outlines that will help.

5. Consider whether you need a maintenance agreement

A maintenance agreement is a package that comes at a small additional cost and covers all services for your vehicle throughout your contract. You may be considering including a maintenance package when you get your vehicle as, essentially, it staggers the cost of services and maintenance for your vehicle, meaning you don’t end up paying for it all in one wallet-hitting go. 

If you’re setting up business leasing for a business then a maintenance agreement is particularly viable if you have a fleet of vehicles. If they all have to be serviced at the same time then you could end up parting with a hefty amount of money.

6.  Go through the approval process

When you lease a car, you need to get approved for finance. The Finance House needs to know that you’re able to make the monthly payments. To ensure this, they’ll take a look at your credit score.

As a business, the Finance House will carry out a credit check on your business. It’s also possible that they will ask you to provide more information.

If you’d like to find out more about the information a Finance House will ask you for when applying for finance, we have an article that outlines what you need.

7. Sign the documents

Once your finance application has been approved, all you need to do is sign the documents and wait for your vehicle to be delivered.

8. Decide what you’re going to do at the end of the contract

It doesn’t matter how long your agreement, while you have your vehicle or fleet of vehicles, you will need to think about what you want to do when your contract(s) comes to an end.

If you have a Finance Lease, then you will have to decide whether you want to sell the vehicle(s) on to pay off the balloon payment or if you would like to make a Peppercorn Rental payment in order to extend your lease for another year.

If you decide to sell on your Finance Lease vehicle, or you chose to get your vehicles on a Contract Hire agreement, you’ll want to start looking for a new lease vehicle. When making this decision it’s worth thinking about all the things you do and don’t like about your current vehicle. Did you have enough mileage on your contract? Would you prefer a shorter contract? Once you know this it’s time to get in touch with us, and we can start the search for your next vehicle.

So that’s everything you need to know about how you go about setting up vehicle leasing for a business. As you can see, it’s incredibly straightforward if you make the right preparations before you start.

When it comes to looking for a new vehicle we recommend you keep open-minded. It may well be that the vehicle you least expect is the one that not only meets, but possible exceeds your expectations, including budget.

As we said, we work with businesses every day and we talk through this process on a regular basis.

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