Leasing is quickly becoming the most attractive form of holding a vehicle in the UK as interest rates plummet and leasing options increase. Potential leaseholders have more leverage than ever when negotiating a fair and budget-friendly lease, but in order to get the best van leasing deals, there is a bit of work involved.
Know What to Expect
There are a number of websites such as LeaseBusters that will allow you to search for the van or vans you’re interested in and see what the average lease payment for that vehicle is going to be. Even if the model on the website is two or three years older than the current model, the lease prices shouldn’t significantly vary.
Set Your Budget
Knowing what you can afford before entering into any leasing deals is the best way to make sure that you stick to your budget and stay focused on the best vans for you.
Acquire an Independent Vehicle Pricing Report
A number of independent agencies offer both retail and wholesale pricing reports for a reasonable fee, which can save you hundreds if not thousands of dollars in leasing costs. Once you’re able to establish a dealer’s lowest wholesale price (or their starting point), confirm the current lease interest rate that is offered by the manufacturer’s leasing company. This will give you a firm leg to stand on when you begin negotiating for the most cost-effective lease.
Check for Lease Promotions
The Internet is your best resource when checking your options and being able to calculate which lease deal is the best for you.
- Check the websites of all manufacturers of vans you’re interested in possibly leasing. They may have special lease promotions on the vehicle of your choice.
- Check the websites of van dealerships and see if they are offering any special deals on leasing a vehicle.
- Browse the local newspaper and be on the lookout for ads from dealerships that are offering leasing specials.
Ask About the Over Cost Mark-Up
When speaking to a representative at the dealership, ask them to provide you with the van’s “over cost” mark-up, and ask the dealership to calculate your monthly lease payment based on the vehicle’s sale price. This should amount should also include:
- Freight costs
- Air tax
Also be sure to determine the administration fee prior to signing a lease.
Determining the Best Lease
By today’s standards, a mark-up that is anywhere within the 2% to 4% range is competitive and is a relatively solid deal. However, if the payment is even lower than the amount you’ve researched, then you’ve got yourself the best deal.
One final consideration you should take into account is the value of your time, and the petrol you may spend taking trips to other car dealerships simply to save a couple of percent points on the mark-up. In many cases, individuals will save more agreeing to a 3% mark-up than spending hours researching, traveling, and negotiating for a 1% mark-up lease.