At the end of the vehicle lease period, provided the client has the requisite finance available, the car will then be available for purchase. Of course, should the prestige vehicle in question not live up to its expectations in maintaining its worth, the beauty of PCP is that the customer then has the right to simply walk away from the deal. Whilst van leasing is known to be relatively cheaper than purchasing, some small businesses worry about the restrictions that leasing might impose. Once all van leasing options are looked into however, it becomes clear that such restrictions need not be a concern. Leasing restrictions are generally associated with contract hire, a method of leasing whereby a vehicle is returned to the lease company at the end of the lease period. Since the contract hire payments are based largely on the expected depreciation of the vehicle during the lease period, there will be mileage restrictions imposed on the business customer, with financial penalties if these are exceeded. The first point to note is that mileage allowances are negotiable at the outset; if a business expects to do more mileage than the run of the mill van leasing customer, this can be factored into the contract hire monthly lease payments and stringent penalties avoided.

The second point to note is that specified types of van leasing do not impose mileage restrictions. Lease purchase, for example, is a form of leasing in which a business still enjoys the benefit of low monthly payments but commits at the outset to buy the van at the end of the lease period. This purchase is made at a pre-agreed price via a large final payment, known as a ‘balloon’ payment. Since, unlike contract hire, the business customer absorbs the depreciation risk, the lease company will have no need to impose mileage restrictions.

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