Reviewed by
Billy Lang, Director
FCA Registration No: 835008
The two costs that matter
Van leasing has two cost lines you actually feel: the initial rental (paid up front, with the first payment) and the monthly rental (the same figure for the rest of the term).
The 1.5 vs 3-month initial rental rule
Our initial rental is typically structured as 1.5 or 3 months. It's paid as the first payment of the lease — not a deposit you lose. Which structure you sit on depends on your trading history and circumstances.
1.5-month structure
Lower up-front payment. Typically used for established self-employed applicants with clear trading history and a stable affordability picture.
3-month structure
Higher up-front payment, slightly lower monthly. Typically used for newer self-employed applicants or where the wider picture is less established. The default for under-12-months self-employed.
Important: the total cost over the lease is the same either way. Only the cashflow timing differs. For a worked side-by-side example, see our initial rental explainer.
What changes the monthly figure
- 1
Vehicle choice
A medium panel van vs a Luton-bed vs a small city van: very different monthlies. The single biggest driver of the cost.
- 2
Term length
Shorter terms cost more per month (you're paying for the flexibility). 6–12-month Flexi terms typically sit higher per month than 36-month options.
- 3
Mileage allowance
Higher mileage = higher monthly. Estimate honestly — overrun charges hurt at hand-back. Better to pay for an extra 5,000 miles you might not use than the other way round. Our mileage-allowance guide walks through how to estimate it.
- 4
Initial rental
Shifts cash from up-front to monthly (and vice versa). Doesn't change the total cost over the lease.
- 5
Specification & options
Paint, trim, power options, towing, racking — each adds incrementally. Usually small but can add up.
A worked example
Placeholder — awaiting real case study
Self-employed van lease — typical 3-year cost
Worked example: a sole-trader courier on a medium panel van over a 36-month Flexi Lease term. Initial rental, monthly rental, total cost over the term, and what changes the figure if mileage doubles or the term shortens. Real-ish numbers (not invented). Client to supply or confirm.
What we factor
What sits behind the quoted figure
- Vehicle and specification you choose
- Term length, mileage allowance and initial rental
- Soft credit check via Creditsafe — does not normally affect your credit score the same way as a full lending application
- Affordability against your trading history
- Identity, address and fraud-prevention checks
All quotes are subject to status. We do not offer guaranteed approval.
Related
Audience
Self-employed leasing
SA302s, bank statements and contracts accepted in lieu of payslips.
Decision support
Should I lease or buy a van?
Cashflow vs ownership for sole traders. Cost-of-ownership and tax notes.
Use case
Van leasing for couriers
High-mileage owner-driver work — and the mileage maths.
Explainer
Mileage allowance: how to choose
Estimating annual mileage honestly, and what excess charges actually cost.
Explainer
Initial rental: 1.5 vs 3 months
Worked side-by-side example of the two structures.
Frequently asked questions
How much do I need up front?
Initial rentals on Flexi Lease are typically 1.5 or 3 months — paid as the first payment, not a deposit you lose. Newly self-employed applicants and those on shorter trading histories typically sit on the 3-month structure. The total cost over the lease is the same either way; the choice is about cashflow timing. See our full initial-rental explainer for a worked side-by-side example.
How do I work out the right mileage allowance?
Track a representative four-week stretch of driving — including a busy patch — and multiply by 13. Add 10–15% contingency for the trips you can't predict, and round up to the next standard mileage band rather than down. Going over your contracted mileage costs 8–18p per mile at hand-back, and the rate is fixed when you sign. See our mileage-allowance guide for a worked excess example.
What changes the monthly figure most?
In rough order: vehicle choice (most), term length (next), mileage allowance (next), then initial rental (lowest impact on monthly because it shifts cash, not total cost). Specification add-ons (paint, options, racking) move the monthly slightly. Your trading-history profile may shift the rate band — but the soft credit check at quote stage tells us where you sit.
Is leasing more expensive than buying outright over time?
Over a long-enough holding period, yes. Over typical 3-year horizons the gap is much smaller, and once you factor in maintenance, depreciation risk, the cost of capital and the value of cashflow flexibility, the answer can flip. See our full lease-vs-buy comparison for sole traders.
Can I claim the lease against my tax bill?
[PLACEHOLDER — to be confirmed by your tax adviser] Sole traders can typically claim a proportion of business van leasing as an allowable expense, depending on use. Speak to your accountant for advice that fits your situation.
Does the soft credit check affect what I'm offered?
The soft check via Creditsafe lets us assess identity, address, fraud-prevention factors and general suitability — and gives us a first read on what we can offer. It does not normally affect your credit score the same way as a full lending application.
Costs vary by vehicle, term and circumstances.
The example figures on this page are illustrative — your actual quote will reflect your chosen vehicle, term, mileage and trading profile. 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 a real number for your situation
A soft credit check via Creditsafe takes minutes — and produces a quote built around your trading evidence, not a generic example.
