Personal van leasing is when a private individual (as opposed to a business or a company) takes out a lease agreement on a new van or pick-up truck. It offers an alternative, often cheaper funding solution to buying a new van with a bank loan or dealer finance.
Personal van leasing is a long-term lease agreement offering the exclusive use of a van for a set period of time. An individual lease on a van or pick-up truck on a Personal Contract Hire agreement usually lasts for a period of 2, 3 or 4 years. Once the contract is up, the van is returned to the leasing provider without any further obligations, leaving you free to lease or purchase another vehicle.
Personal van leasing helps avoid any unexpected costs by offering a fixed monthly payment for the term of the lease. Any concerns about depreciation or disposal of the vehicle are also left to the finance provider as they are the registered owner and keeper of the vehicle.
Unlike a business lease agreement in which the business is required to undergo a credit check, with personal van leasing, the individual taking out the lease agreement is approved for finance. This makes it a popular lease choice for sole traders, partnerships and newly established companies who have been trading for under a year and may be otherwise unsuitable for business van finance.
On a personal contract hire agreement, the private individual pays an initial rental, followed by a series of monthly payments for the duration of your lease agreement (usually 2, 3 or 4 years). At the end of the agreement, the van is returned to the finance provider.
In some cases (subject to approval from the finance provider), you may also be able to extend the vehicle contract for a short period of time.
Personal van leasing offers many benefits, including:
While personal van leasing offers many benefits, this product may not be suitable for everyone. Key considerations include:
Personal van leasing is not available on every product as this funding solution is only available through selected finance providers. There may also be some limitations on a van leased on a personal basis, which your sales advisor will be able to advise you on.
All pick-up trucks are available to lease on a personal contract hire agreement. Although dealt with by our van specialists, these vehicles, are available to both personal and business customers, provided you are financially eligible.
As part of the finance application process you will need to undergo a personal credit check in order to lease a vehicle through Nationwide Vehicle Contracts.
Take our brief interactive questionnaire to find out if you are likely to be accepted for personal leasing finance.
When filling out our online Personal Finance Application Form, you will be asked to provide the following information:
As part of your application, you may also be asked to provide additional information in certain circumstances, which may include:
At the end of the four-year contract, Chris returns the pick-up to the finance company and chooses to take out a new PCH agreement on the new Nissan Navara.
Steven has just started up his own florist shop and is planning to offer his services for big events such as weddings. He takes out a personal contract hire agreement on a Citroen Berlingo. The contract:
At the end of the four-year contract, Steven returns his van to the finance company. He then decides to take out a BCH agreement as his business has grown and needs to take on two more vans.
Please note: case studies created for illustrative purposes only.
If you wish to see our top personal van lease deals, you can find them here.