How To Choose The Right Van Lease For Your Business

Choosing the right van lease isn’t just about finding a model you like, it's about choosing a vehicle that works just as hard as you do. The van you drive directly impacts how much you can carry, how secure your equipment is, how comfortable your team feels, and even how much tax you'll end up paying. 

Whether you're a sole trader or managing a growing fleet, the right choice of van can save you time, money, and stress in the long run. 

In this guide, we'll break down the key factors you need to consider, from payloads and body styles to security, running costs, and tax rules. We'll cover: 

Before you look at makes and models, start with the basics: what do you actually need the van to do? Think about: 

• What you're transporting - tools, materials, parcels, or bulky goods. 
• How far you drive each day - short city routes or long motorway runs. 
• Passenger space - will it just be you, or do you need space for a team? 

The most important factor is payload capacity. Overloading a van doesn't just put extra strain on the vehicle, it can also lead to fines, invalidated insurance, and serious safety risks. 

To gauge payload, think about real‑world items:

• A bag of builder’s sand weighs roughly 1.3 tonnes per cubic metre.
• A standard Euro pallet (1.2 m × 0.8 m) weighs around 25 kg empty.
• A single sheet of 18 mm MDF is about 30 kg.
• A bag of cement is roughly 25 kg, while a bale of hay can exceed 15 kg.
  

If you're carrying heavy materials or multiple pallets, you'll likely need a van with a 1-tonne or higher payload. couriers, on the other hand, often prioritise load length and volume rather than weight. 

It's also smart to plan ahead for growth. Many tradespeople underestimate their requirements, only to find themselves needing a larger van. Always allow for extra capacity. 

Van racking can transform the way you work. A well-organised load space means quicker access to tools, safer storage, and a more professional image. But there's a trade-off: racking takes up weight and space, and the wrong setup can impact payload and fuel economy. 

Materials 

• Steel racking - Strong, durable, and cost-effective. It's heavier than aluminium and reduced payload. 
• Aluminium racking - Lightweight and rust-resistant. It helps keep fuel costs down but usually comes at a higher price. 

Racking styles 

• Folding shelves - Fold back against the van wall, leaving space for bulky items. 
• Adjustable shelving - Flexible systems that can be repositioned for different needs. 
• Accessories - Bins, drawers, dividers, and tie-downs. 

Unfortunately, van theft remains a growing issue in the UK, with criminals using advanced techniques like relay attacks, key cloning, and even 'door peeling' (Crime Survey for England and Wales). Protecting your van is about layering security so it's not an easy target. 

Key security options:

• Deadlocks & slam locks - Deadlocks require a key each time, offering excellent protection but relying on you to engage them. Slam locks lock automatically when the door shuts, which is handy for couriers, though they’re easier to bypass.
• High‑security locks - Whether it's for your door lock, gear lever, or steering column, getting an extra lock provides an extra barrier. 
• Alarms - Modern alarm systems include motion sensors, shock detectors and high‑volume sirens. 
• GPS tracking - Real-time tracking helps police recover stolen vans and can sometimes lower insurance costs.
• Immobilisers & cameras -  An immobiliser cuts power to the engine unless the correct key signal is detected, stopping hot‑wiring. Motion‑activated cameras or dashcams provide evidence and deter thieves, particularly in high‑risk areas.

Want more details? Read our Top Van Security Tips for practical advice on protecting your van and its contents. 

How you fund your van lease can make a big difference to your monthly costs and tax position. The two main options are Business Contract Hire (BCH) and Personal Contract Hire (PCH).

When choosing how to fund your van, you’ll usually decide between a business lease or a personal lease. Business leasing tends to suit companies looking for tax efficiency, while personal leasing is aimed at individuals who want fixed monthly costs without the admin of business contracts.

Business contract hire is best for VAT-registered businesses and limited companies. 

• VAT reclaim - VAT-registered businesses can reclaim 100% of the VAT on van lease payments and maintenance packages, provided the van is used solely for business purposes.
• Tax-deductible - Lease rentals for vans are generally deductible as business expenses, giving corporation tax relief. 
• Lower BIK - Vans are classed as commercial vehicles, so company van drivers usually face much lower BIK charges than company car drivers.

Personal contract hire is best for sole traders and individuals. 

• VAT included - Monthly payments include VAT and it cannot be reclaimed.
• Personal expense - Payments are personal expenses, so they do not qualify as a business tax deduction.
• Flexible use - Great for drivers who mix personal and business use without needing business paperwork.
• fixed costs - Predictable monthly payments with no risk of depreciation. 

For more details on the different types of leasing available, read our Guide to Lease Contract Types.

Leasing isn't just about the van, it's about knowing what it will cost to run. 

• Electric vans - Electric vans cost more upfront, but have lower running costs, fewer moving parts, and less maintenance. Electricity is also usually cheaper than diesel per mile.
• Diesel vans - Although cheaper upfront, they are more expensive to run with higher fuel costs and regular servicing needs. They can also cost up to £320 per year in road tax.

• Electric vans - Most models now achieve 130 to 200 miles on a single charge. Suitable for daily UK business use (average van mileage: 80 to 100 miles).
• Payload - Similar to diesel, though often slightly reduced. For example, the Vauxhall Vivaro Electric carries up to 1,000 kg compared to 1,400 kg for the diesel.

Use this checklist to shortlist the best van lease for your needs:

Selecting the right van involves balancing load capacity, body style, security, tax implications and running costs. Medium panel vans remain popular because they offer versatile space and strong reliability, while smaller vans are perfect for trades working in cities and towns.

Electric vans are on the rise, offering low running costs, tax advantages, and exemption from ULEZ charges. 

• Looking for the latest offers? Browse our van leasing deals. 
• Want more advice? Visit our van leasing guides for tips and expert insights.
• Need help comparing van sizes? Head to our van size & dimensions guide for a full breakdown.