Reviewed by
Billy Lang, Director
FCA Registration No: 835008
“Cheapest” depends on which question you're asking
Three different questions, three different answers. Be clear which one you mean before you compare quotes.
Cheapest per month
Usually a longer-term lease or a second-hand HP at low monthly. Doesn't mean cheapest overall.
Cheapest in total
Usually buying a sensible second-hand van outright with cash. You wear the depreciation and the cashflow hit.
Cheapest right now
Whichever route gets you working without a big up-front payment you can't spare. Often Flexi Lease.
Three honest routes
| Flexi Lease | Second-hand HP / cash | Van subscription | |
|---|---|---|---|
| Up-front cost | 1.5 or 3-month initial rental | Cash purchase or HP deposit | Often £0 deposit; first month up front |
| Monthly cost direction | Mid | Lower (HP) or zero (cash) | Higher |
| Total cost over 3 years | Mid | Usually lowest (cash) | Usually highest |
| Eligibility for newly-formed business | Yes — soft credit check first; director guarantee normal | HP often declined without trading history; cash always works | Yes — designed for short commitments |
| Depreciation risk | On the lender | On you | On the subscription provider |
| What's included | Vehicle + VED. Maintenance optional bolt-on. | Vehicle only — everything else on you | Often vehicle + insurance + maintenance bundled |
| Best for | New businesses needing predictability + cashflow | Cash-rich operators with stable working pattern | Very short-term needs (1–3 months) |
A worked comparison
Placeholder — awaiting real case study
Three routes, same van, same period
Worked example: same medium panel van compared across Flexi Lease (36-month), second-hand HP (36-month), and a 3-month subscription stretched to a year. Total cost over three years for each route, including the up-front cash and what you have at the end. Real-ish numbers (not invented). Client to supply or confirm.
When each genuinely wins
An honest matchmaker
Flexi Lease wins when
You're newly incorporated or under 12 months trading, you want predictable monthly costs, and you'd rather keep cash inside the business than tie it to a depreciating asset.
Second-hand HP / cash wins when
You have cash, a stable working pattern, and intend to keep the van 5+ years. Buying a sensible used van outright with cash usually beats every leasing or subscription route on total cost.
Subscription wins when
You only need a van for 1–3 months — a short contracted job, bridging period before a longer commitment, seasonal cover. Past 3 months the maths usually breaks.
Related
Audience
Leasing for new limited companies
Newly incorporated, no filed accounts? Soft credit check via Creditsafe.
Decision support
Lease vs buy: van for a limited company
VAT, BIK, capital allowances and cashflow — the proper tax-aware decision.
Cost guide
Van leasing cost guide for self-employed
Initial rental, monthly figures, what changes the price.
Frequently asked questions
Cheapest by total cost or cheapest by monthly?
These two answers don't always match. Cheapest monthly is usually a longer-term lease or second-hand HP. Cheapest total cost over the period you keep the van is usually buying a sensible second-hand van outright with cash. Cheapest "I-can-actually-afford-it-now" depends on cashflow and credit availability. We'll tell you which question matters for your situation.
Is van subscription a real option?
Sometimes. Subscription products typically have lower minimum commitments (1 month) and bundled insurance, but the per-month cost is usually materially higher than Flexi Lease for the equivalent vehicle. Worth a look for very short-term needs (1–3 months); rarely the best route for a sustained working van.
How does Flexi Lease compare to second-hand HP?
Second-hand HP can be cheaper monthly but you take depreciation risk, you typically need a deposit, and you tie cashflow into the vehicle for the duration. Flexi Lease keeps cash inside the business and shifts depreciation off your books — but the total spend over the period is normally higher than a well-bought second-hand HP.
What's actually included in a Flexi Lease monthly figure?
Vehicle finance and the cost of the depreciation between now and the end of the term. Road tax (VED) is typically included. Insurance and maintenance are extras (we can quote a maintenance bolt-on; insurance is yours to arrange). The figure is the figure — no hidden charges, no balloon payment.
I'm newly incorporated. Will I be approved?
Yes — newly incorporated companies can lease with us. We use a soft credit check via Creditsafe at the eligibility stage. A director's personal guarantee is typically required for new companies. See leasing for new limited companies.
Comparison content is editorial.
Specific deal terms always depend on the vehicle, customer, and provider. We have not named third-party providers. All quotes subject to status. First Flexi Lease is a trading name of Oak First Investments Ltd. FCA Registration No: 835008. Authorised and regulated by the Financial Conduct Authority.
Get the Flexi number alongside whatever else you're considering
Soft check via Creditsafe takes minutes — and we'll tell you if a different route would suit you better.
