Leasing an EV van can be a great way to start using electric vehicles within your business. These vehicles offer a quieter drive and no tailpipe emissions. They can help to save on some running costs and give drivers new vehicles to drive.

Having a good understanding of how leasing can work for your business can help you make the right choice. Whether you need a van for deliveries, trade, commercial use or even personal use. You will need to take into consideration how much you will be paying each month, charging, mileage and contract details.

Why More Drivers Are Choosing Electric Vans

Electric vans are becoming a key option for businesses looking to upgrade the vehicles they use. Rather than running on traditional fuel like petrol or diesel, they run on battery powered motors.

They offer a great driving experience as the motor offer a smooth acceleration and are much quieter. This makes them ideal for busy roads, residential areas or regular deliveries.

Key Benefits of Electric Vans

There are many other benefits to consider:

• No tail pipe emissions – As they are fully electric, there are no emissions created whilst driving.
• Quiet Motor – Due to the motor being completely electric, it will be much quieter.
• Low running costs – Less moving parts on the engine and no oil changes required.
• Charge at home – If you have the correct charging equipment then you can easily charge your vehicle overnight.
• Modern features – Many electric vans have digital dashboards, driver assistance and smart connectivity features. This can make them appealing to companies who rely on regular transportation around urban areas.

How Does Leasing An Electric Van Work?

Leasing a vehicle means that you can use the vehicle for an agreed period of time. You will agree to make regular payments to the leasing company.

Most contracts will ask for an initial payment to be made. Followed by regular payments each month. The contract will state the length of the lease, how much mileage you can do within the year and any return conditions.

For example, a small delivery company could lease an Electric Van for 3 years. They would pay the agreed monthly payment and use the vehicle for their daily activities. Once the contract has ended they will usually return the vehicle under the conditions set by the provider.

When looking to Lease EV Van it is a good idea to look at a few different providers.

Popular Lease Contracts

There are two popular types of contracts:

Personal Contract Hire (PCH)

This is for private customers wanting to use a vehicle. The customer will pay regular monthly payments and return the van once the contract has ended.

Business Contract Hire (BCH)

This is for companies and eligible business users. It allows businesses to use commercial vehicles.

Which one is right for you will depend on how you are going to use the vehicle, your financial situation and what the leasing company requires.

What To Expect With Costs

When looking at leasing an Electric Van there are a few extra things to consider. Whilst you will be paying monthly payments there are other costs to think about.

Upfront Payment & Monthly Payments

Most leasing contracts will require an upfront rental fee. This will usually be higher than the monthly payments.

Depending on how much you pay upfront, your monthly payments may be lower. However, you will still be paying the same overall. Be sure to look at the overall cost of the contract.

Charging Costs

As these vans run mainly on electricity there are a few things to consider when looking at charging. This includes battery size, electricity costs, charging speed and driving style.

If you have the right parking facilities then charging at home could be a convenient option. Public charging points can also offer added flexibility.

Insurance & Servicing

You will also need to think about insurance. Be sure that your insurance covers the activities you are doing with the vehicle.

Servicing can be very different compared to diesel vans. However, you will still need to ensure that tyres, brakes, suspension and regular servicing is carried out as recommended by the manufacturer.

Some contracts will include servicing, however some will need to be organised and paid for separately.

Choosing The Right Electric Van

Not all electric vans will be suitable for all businesses. Consider how far you will be driving each day, how much cargo you need to carry, parking and charging.

Range

One of the most important factors to consider will be the range. If you are only doing local deliveries then you may not need such a high range.

Manufacturers will give approximate ranges but this can vary depending on:

• Weight of the vehicle and cargo
• Outside temperature
• Road conditions
• Speed of driving
• Use of heating and air con
• Driving style

It makes sense to choose a vehicle that will give you a good range to complete your usual journeys without needing to stop regularly to charge.

Payload & Space

Be sure to check how big the vehicle is and how much weight it can carry.

If you are a courier company then you may need more space to carry lots of parcels. If you are a construction worker then you may need space for your tools, materials and equipment.

Key Things To Look Out For

• Maximum pay load
• Length and height of cargo area
• Access to rear and side doors
• Tow capacity (if applicable)
• Number of seats

Even if the van has a great range it may not be suitable if it cannot carry the right amount of equipment.

Charging Options

Considering how you will charge your electric commercial vehicle can make it more convenient.

Home/Work Charging

If you have the right charging point then it can be easy to charge overnight. If you have private parking then you may want to consider having multiple charging points.

Public Charging

If you are doing longer journeys or do not have the option to charge at home then public charging points can be a great option. Be sure to check that there are charging points available on your regular routes that will be compatible with your vehicle.

Fast Charging

Some electric vans offer fast charging. This can help reduce waiting times on longer journeys. However, how fast you can charge will depend on the vehicle, charging point, battery temperature and current battery level.

Try to create a charging schedule that fits around your working hours to help avoid any unnecessary delays.

Things To Look For In Your Contract

Just because the monthly payments are low doesn’t mean it will be the best option. Be sure to read through the contract to avoid any unexpected costs.

Important Contract Details

Look out for:

• Mileage – Is the mileage limit suitable for how much you will be driving?
• Extra Mileage Charges – What will happen if you exceed your mileage?
• Contract Length – Is the length of the contract suitable for your business?
• Wear & Tear – What are the companies guidelines on acceptable wear and tear?
• Early Termination – What are the financial implications of terminating the contract early?
• Servicing – What servicing costs are covered?
• Delivery Times – When will the vehicle be available?

It can also be helpful to ask for a written breakdown of any extra charges.

Should I Lease Or Buy An Electric Van?

This will depend on your budget, business needs and plans.

Benefits Of Leasing

Leasing can be a good option if you want regular monthly payments and to regularly upgrade your vehicles. Depending on the contract it can also reduce the need for a large initial payment.

Benefits Of Buying

Buying can be a good option if you are planning on keeping your vans for many years and want full ownership. You will also have more freedom to customise and sell your vehicles (depending on any finance requirements).

If you want to regularly upgrade your transport then leasing an EV van can give you flexibility.

However, be sure to compare the overall cost of leasing against buying, finance costs, servicing, depreciation and resale value.

Final Thoughts

Electric vans can be a great alternative to traditional diesel and petrol commercial vehicles. They offer a quiet drive, easy charging and can save on some running and servicing costs.

To make the right leasing choice consider what you need to use for your daily transport. Think about range, payload, charging, length of contract, mileage and extra costs.

By carefully considering your contracts and choosing a vehicle that will suit your workload you can make a more informed choice and benefit from using electric commercial vehicles.