Understanding How To Use The Van Leasing Market
Leasing vehicles and the associated marketing have gone unnoticed recently due to very low interest rates. Lower monthly payments have been the advantage most people have been seizing when dealing with leasing. With the low financing rates, this advantage has been shifted to traditional financing.
The world of leasing vehicles is complicated and difficult to understand fully. Even now it is possible find some good deals out there, but the financial process around leasing a van can still be quite confusing. It is this confusion that can leave you puzzled once the lease period is done.
So to avoid the van leasing confusion, we can look at some basic points.
In vehicle leasing, you are only paying for (in the form of monthly payments) the portion of the van that you use over the life of the lease. As part of the monthly repayments, the sales tax and financial charges will be included.
Yes, van finance or interest charges! In van leasing vernacular this is known as the money factor.
The van’s residual value is what is determined as the quantity of the van that you will use. The residual value is a predetermined number relating to the market value of the van at the end of the lease.
For example: if a $20,000 van has a residual value of $11,000 at the end of your 36 month lease, this means that you will have used $9,000 of this van; so your monthly payments will be based on $9,000 over 36 months. What is obvious here is that the higher the residual value, the better the monthly payments are going to be for you.
Often the money requirements at the start include the initial first month payment and the security deposit. It is optional of course for you to put more money down than recommended (cap cost reduction) which is similar to when purchasing, which will help to reduce monthly payments further.
For more information on leasing a van, including pick up truck leasing and vans of varying sizes, contact MWVC on 08450 500 800.
Tags: cheap van leasing, van finance, van leasing