# Van leasing vs buying outright

> Leasing or buying a van for your business: where the depreciation sits, what each does to your cash and tax, and the case where buying clearly wins.

Source: https://fleetme.co.uk/guides/van-leasing-vs-buying

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# Van leasing vs buying outright

By [the FleetMe team](https://fleetme.co.uk/about) · Updated 14 October 2026 · 9 min read

The short answer

**Leasing turns a van into a fixed monthly cost and hands the resale risk to us. Buying makes the van yours and the depreciation yours. Buying wins on a van you keep a long time and work lightly; leasing wins on almost everything else.**

## The real question is who carries the depreciation

## What each one does to your cash

## Side by side

|  | Contract hire | Buying outright |
| --- | --- | --- |
| Who owns it | FleetMe, throughout | Your business |
| Up-front cost | An initial rental, typically a multiple of the monthly | The full price, or a deposit plus borrowing |
| Monthly cost | Fixed for the whole term | None once paid for; loan repayments if financed |
| Resale risk | Ours | Yours |
| At the end | Hand it back | Keep it, sell it or run it on |
| Maintenance | Optional package, fixed monthly | Yours, whenever it happens |
| Mileage | Agreed up front, charged over | Unlimited |
| Modifications | Restricted; return it as it was | Yours to do as you like |
| Accounting | An operating expense | A capital asset, written down over time |
| Best when | You want a fixed cost and a new van every few years | You keep vehicles a long time and work them lightly |

## The tax treatment is genuinely different

## When buying genuinely wins

## When leasing genuinely wins

## The mistake made in both directions

## How to decide in ten minutes

## Put a price on it

Tell us the vehicle, the term and the annual mileage you need and we come back with a written quote, and we aim to do that the same working day. Rentals are quoted ex VAT with the VAT-inclusive figure alongside, and your agreement is with FleetMe.

How many vehicles do you need?

Takes a minute. No obligation.

## Enquiry received, one step to go.

We can put a guide figure together from what you ve told us. To confirm the vehicle, the monthly rental and a delivery date **in writing**, we need your business details and the underwriting information.

Next step · about 5 minutes

Complete your business application

It s pre-filled from your answers. Nothing is committed until we confirm your quote and you sign.

No obligation · About 5 minutes

Prefer to leave it there? We ll still be in touch about your enquiry.

## FAQs

### Is leasing a van cheaper than buying one?

Not inherently. Over a short holding period leasing is often cheaper in total because you never absorb the steepest depreciation. Over a long one, keeping a van a decade, buying is usually cheaper, because you stop paying for it and keep using it.

### Can I buy the van at the end of a contract hire agreement?

No. Contract hire is a rental: the vehicle goes back at the end and ownership never passes to you. If owning the van at the end matters, hire purchase or a finance lease is the route to look at instead.

### Does leasing a van affect my credit or borrowing?

A lease is a commitment and an underwriter will see it, in the same way a loan would. What it does not do is consume a lump of cash or sit on the balance sheet the way a purchased asset and its borrowing do. Your accountant can tell you how it presents in your accounts.

### What happens if my mileage changes mid-agreement?

Tell us early. A mid-term mileage amendment is often possible, the figure is adjusted and the rental re-rated for the remainder, which spreads the cost rather than landing it as an excess charge at the end.

### Can I reclaim the VAT either way?

On a commercial vehicle used for business, VAT on lease rentals is generally reclaimable in full, and VAT on a purchase is generally reclaimable too. Cars are treated very differently. Check your own position against HMRC Notice 700/64 and with your accountant.

## Next step

Business van leasing →

How the monthly rental is built, what is included, and who business contract hire is for.

Business van leasing eligibility →

The honest answer on who gets considered, and what we look at when we assess a business.

Or go straight to the range: [browse vans and pickups](https://fleetme.co.uk/vans) · [company cars](https://fleetme.co.uk/cars)

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