Can I lease a car and van at the same time?
You can lease a car and a van at the same time. Each vehicle is a separate business contract hire agreement with its own term, mileage and monthly rental. Funders assess the business's commitments as a whole, so whether each agreement goes ahead is their decision.
The detail
There is no rule limiting a business to one contract hire vehicle. A company, sole trader or partnership can run a mix of cars and vans, and many do: a van for the trade, a car for the owner or a sales role.
Points to bear in mind:
- Separate agreements. Each vehicle has its own term, annual mileage, maintenance choice and end date. They don't have to match, and they can be arranged at different times.
- Credit assessment. As a broker, we pass your details to funders. The funder decides whether to offer each agreement, and it will usually look at your existing commitments, including any other leases. Having one agreement already doesn't rule out a second, but it doesn't guarantee one either.
- Business use. Contract hire through us is for business customers. Vehicles are leased in the name of the business.
- Tax and VAT. Cars and vans are treated differently. Rules on recovering VAT on rentals, and on tax for employees who use a vehicle privately, differ between the two. Check with your accountant before you choose.
- Different needs. A van agreement is usually chosen around payload and mileage. A car agreement is usually chosen around the driver, running costs and emissions. They are worth comparing separately.
A worked example with no invented figures
Imagine a limited company that installs heating systems. It has two staff who need different things.
- The lead engineer needs a panel van for tools and materials. The company arranges a van contract hire agreement with a mileage allowance that reflects daily site visits.
- The director visits clients and wants a car. The company arranges a separate car contract hire agreement, with a term and mileage that suit that use.
- The funder assesses each application using the company's accounts and existing commitments. It may ask for further information on the second request because the company already has the first.
- Each agreement runs on its own timetable. When the van agreement ends, the company can return it, replace it or extend. This doesn't change the car agreement.
The business ends up with two monthly rentals to budget for, two end dates to diarise and two sets of vehicle terms to follow.
Related questions
- Can I lease more than two vehicles as one business?
- Do I need to be VAT registered to lease a van?
- What happens to my other agreements if one vehicle is returned early?
- Can a sole trader lease a car and a van?
- How does a funder assess a business that already has leases?
Questions people ask
Does leasing a van affect my chances of leasing a car?
It can be taken into account, because funders consider a business's existing commitments. Each application is assessed on its own merits and we can't predict the outcome.
Do both vehicles need the same funder?
No. Different vehicles can be arranged with different funders, depending on what is available for each.
Can the agreements start and end on different dates?
Yes. Each is a separate contract, so terms and end dates can differ.
Is contract hire the same as a loan?
No. With contract hire you rent the vehicle for an agreed term and mileage and return it at the end. Swiss Vans Ltd is a credit broker (FCA FRN 668283), not a lender.