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What Is Personal Van & Pick-Up Leasing & How Does It Work?

Date Posted 26th May 2021
Read Time 11 min read
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Many people think that if you’re going to lease a van or pick-up truck you have to do it through a business. But that’s not true. 

If you’re looking for a new van or pick-up and can’t or simply don’t want to get it through a business lease, personal leasing could be the perfect solution. 

What is personal van and pick-up leasing?

Personal van and pick-up leasing is a low-commitment, low-cost way to drive the vehicle you want. 

You make fixed monthly payments for the length of your contract – which is usually between 12-48 months – and at the end of your agreement, you simply hand it back. It’s a bit like a long-term rental.

You’re then free to pick a new van, pick-up or any other type of vehicle you want and start a new contract – if you wish. 

What’s the difference between personal van leasing and business van leasing?

As the name would suggest, personal van or pick-up leasing is where the lease belongs to you; a person. 

Whether or not you get approved for a lease depends on your financial circumstances, rather than a business, and it comes with many benefits; which we’ll cover shortly. 

Business van leasing, on the other hand, is where the lease belongs to the business. This can be tricky for some businesses, especially if recently-founded, as you usually have to provide at least two years worth of accounts before being approved for a business lease. 

Also, unless your business is VAT registered, it’s hard to take advantage of the tax benefits which come with a business lease. 

Benefits of personal van and pick-up leasing

Personal van and pick-up leasing come with several benefits. And to help you understand them, we’ve listed some below. 

Low, fixed monthly payments

The monthly payments on a lease are usually much lower than those of other types of finance. That’s because you never pay the full price of the vehicle; only the value it loses during your contract – its depreciation. 

Also, your payments are fixed for the duration of your agreement, meaning you know exactly how much you’re going to pay each month so you can budget accordingly. 

Get a more expensive van or pick-up

With a personal lease, as you only ever cover the value the vehicle loses during its contract and not the full price, you may be able to get a more expensive van or pick-up than you’d otherwise be able to afford. 

That could mean a more economical engine, better interior spec or even a bigger vehicle for heavier loads. 

Change your van or pick-up more often

A personal van or pick-up lease is designed to last a set amount of time. It’s usually between 12-48 months; whatever suits your circumstances and budget. 

That means you can get a new van or pick-up every few years. By doing so, you can get access to the latest technology, more economical engines which help save you money at the fuel pump and a more reliable vehicle. 

Admittedly, there’s nothing stopping you from buying the van or pick-up outright and changing it frequently. However, if you do that, you’ll be subject to depreciation, and you’ll end up spending a lot more than if you leased. 

Enjoy the van or pick-up in its best years

A lease is usually designed for brand-new or nearly-new vans and pick-ups. Because of that, when you lease, you get to experience the vehicle in its best years. 

It’s unlikely to face any serious mechanical issues – and even if it does, there’s a better chance of you being covered by the manufacturer’s warranty. 

Also, the engine will be more economical – saving you on fuel costs – and, as it’s a newer van or pick-up, you’ll get better tech and up-to-date safety features. 

Everything in one payment

With a lease, your road tax is included in your monthly payment for the duration of your agreement. You can also add a maintenance package. 

A maintenance package covers the cost of servicing and any wear and tear items that aren’t covered by your warranty. For example, tyres after they need replacing due to wear. 

Avoid depreciation

With a lease, the van or pick-up is never yours. That means you don’t have to worry about it losing value during your contract as you would with other types of finance because you never have to sell it. 

At the end of your lease, you simply hand the vehicle back and walk away. 

Low and no deposit options

With some lease companies, you typically have to pay nine months’ payments upfront. However, at Hippo Leasing, that’s not the case. 

You can start your van or pick-up lease with whatever deposit you choose, including a £0 deposit option. That means you don’t have to have access to or use any savings to get the van or pick-up you want. 

Considerations for personal van and pick-up leasing

Like any form of finance, leasing also has elements you need to consider before making a decision. We’ve highlighted the key considerations below. 

You never own the vehicle

With a lease, you’ll never own the van or pick-up. Instead, you pay fixed monthly payments over the course of your contract, and at the end, you hand the vehicle back. 

So, if ownership is important to you, then a personal van or pick-up lease probably isn’t your best option. 

Mileage

With a lease, you set your annual mileage at the beginning of your contract. This is an estimate of how many miles you expect to cover in your van or pick-up each year. 

The mileage is used to help work out the monthly payment. The more miles you do each year, the more you’ll pay. 

However, if you exceed your mileage, for example, 10,000 miles a year on a 48-month agreement would be 40,000 miles, then you’ll face an excess mileage charge. 

The excess mileage change is a pence-per-mile charge which is applied at the end of your agreement. It can be as low as five pence per mile, but as high as 40p per mile, depending on the lender. 

Vehicle condition

With a lease, you have to keep the vehicle in good condition throughout your lease. That includes the aesthetics, mechanics and servicing. 

For example, if you bump your van or pick-up, you’ll either need to get it repaired before you hand the vehicle back at the end of your lease or face a repair charge. 

It’s also important to note that this includes any signage, modifications or decals you add to the vehicle. The van or pick-up needs to be returned in the same state you received it, minus fair wear and tear. 

So, if you want to add a logo or body kit to the vehicle, for example, it’ll need to be removed before you hand it back, even if it adds value. 

Constantly making monthly payments

As you never own the vehicle, you may find yourself jumping from lease to lease, meaning you never stop making monthly payments. 

Can I lease any van or pick-up on a personal lease?

Yes, you can lease any van or pick-up on a personal lease. Whether that’s a small van; perfect for around-town driving, a double cab pick-up for the family, or a Luton van if you regularly carry bulky items, there’s a personal lease for you. 

If you’d like to know more about different van sizes and types, you can read our full guide here.

What are the most popular vans and pick-ups for personal lease?

When it comes to personal leasing, there are a select few vans and pick-ups which are in higher demand than anything else. 

Ford Transit Custom

As you’d expect, the Ford Transit Custom is one of the most popular vans for personal lease. 

With plenty of space, iconic styling, outstanding reliability and unmatched customisation options, including the Sterling Ford Transit, the Transit Custom has everything you need from a medium-sized van. 

Ford Ranger

Another popular model from Ford is the Ranger pick-up. Its unmistakable styling, practicality, comfort and dependability make it one of the best pick-ups available. 

You can read our complete Ford Ranger review here

Vauxhall Vivaro

The Vauxhall Vivaro van is an affordable, dependable workhorse that also brings with it much of the great tech you find in Vauxhall’s road cars. That includes sat-nav and smartphone projection, which helps turn your van into a mobile office.

It’s practical, too. With smart long-loading features, a decent payload capacity and a wide engine range, including all-electric. 

Mitsubishi L200

The Mitsubishi L200 is a stylish, strong and practical pick-up that has a variant to suit every need. 

Whether that’s simple crew cab dependability for everyday labour or double cab, statement-provoking styling for added kerb appeal, it’s hard to think of something the L200 can’t accomplish. 

Mercedes-Benz Sprinter

The Mercedes-Benz Sprinter comes with one of the highest specifications on the van market. And thanks to its three-pointed star at the front, you know it’s going to be smooth and reliable. 

It also features great adaptability, including a 3.0-litre turbocharged long-wheelbase variant which comfortably sits at the head of its market. 

Am I eligible for a personal van or pick-up lease? 

Finding out whether you’re eligible for a personal van or pick-up lease is easy, and you can get an answer in minutes. 

Just click Apply Now, fill out our quick form, and we’ll tell you whether you’re eligible for a personal van or pick-up lease directly to your inbox without affecting your credit score.

Even if you’re unsure whether you’ll be accepted, there’s no harm in finding out, as our check is soft, so it won’t appear on your credit file or harm your credit score. 

But as a quick guide, here are some must-haves to being accepted. You have to:

  • Be 18 years old or older
  • Have a full UK driving licence
  • Have the ability to make your monthly payments

Do I have to pay a deposit?

No, you don’t have to pay a deposit with any of our van or pick-up personal lease agreements. So, you can pay nothing towards your finance agreement for 30 days. 

That means even if you don’t have or want to use savings, you don’t have to, and you can still lease the van or pick-up you want. 

What happens at the end of my lease?

At the end of your lease, it’s time to hand the van or pick-up back. You’ll usually arrange this a few weeks in advance. 

Most lenders will contact you to arrange a time, date and location for handing the vehicle back, but some won’t. If that’s the case, you must contact them before your contract is up. Otherwise, you could face a late return charge. 

When the date comes, the lender will send an independent body to collect the vehicle. Before they do, they’ll check over your van or pick-up, assessing its mileage and condition to ensure you’ve kept up your end of the contract. 

If you’ve exceeded your agreed mileage or there’s damage to the vehicle outside of fair wear and tear, the independent inspector will report back to the lender who’ll then issue you a bill.

If you’ve kept to your mileage and there’s no damage outside of fair wear and tear, then you’ll face no extra charges and you’re then free to start a new contract if you wish. 

Want to know more about van leasing? Read our complete guide here