Personal Van and Pick-Up Leasing

What is personal van leasing?

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.

How can it work for me?

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.

Key benefits of personal van leasing

Personal van leasing offers many benefits, including:

• Low initial rental
• Fixed monthly rentals to make budget planning easier
• Flexible duration and mileage terms to meet your needs
• Servicing and maintenance can be included in the monthly fees, helping to spread the cost
• No depreciation or disposal concerns as this responsibility lies with the finance provider

Key considerations of personal van leasing

While personal van leasing offers many benefits, this product may not be suitable for everyone. Key considerations include:

• Early termination can be expensive
• An excess mileage charge will be payable if agreed mileage perimeters are exceeded.
• The vehicle must be returned in a well maintained condition. Any damage over and above that stated in the Fair Wear and Tear Guide will be subject to additional charges
• Vehicle must be insured with full comprehensive cover
• You will never own the vehicle as there is no option to buy it

Are there any exclusions?

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.

Am I 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.

What we need to know about you

When filling out our online Personal Finance Application Form, you will be asked to provide the following information:

• Personal details, including marital status and number of dependants
• Address details for the past five years
• Employment details for the past three years
• Your bank details
• Your monthly income and expenditure

Additional information that might be required

As part of your application, you may also be asked to provide additional information in certain circumstances, which may include:

• Further details about your employment history
• Further details about your monthly income and expenditure

This information will be used to ensure you are able to afford the lease you have applied for.

When to choose business over personal van lease?

Business van leasing is an excellent choice for sole traders, partnerships and limited companies but if your company is relatively new (e.g. has been trading for less than a year) or has been previously been denied vehicle finance, you may not be eligible for business van finance. Personal van leasing offers an alternative funding solution, allowing you to lease a van or pick-up truck on an individual basis, rather than through your business or company.

Personal contract hire case studies

Case study 1:

Chris is a Utilities Manager. He lives in Cheshire with his family and on the weekends he enjoys spending time in his own farm. He takes out a personal contract hire (PCH) agreement on a Ford Ranger. The contract:

• Duration: 48 months
• Annual mileage: 8,000
• Initial rental: £894.42
• Monthly rentals: £298.14

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.

Case study 2:

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:

• Duration: 48 months
• Annual mileage: 8,000
• Initial rental: £543.42
• Monthly rentals: £181.14

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.

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