A van lease is a fixed-term vehicle finance agreement, typically lasting 2–5 years, with fixed mileage limits and additional services arranged separately.
A van subscription is a more flexible model that offers shorter terms and greater adaptability, and usually bundles costs into a single monthly payment.
This guide compares van subscriptions and van leasing to help UK businesses decide which option best suits their needs.
Two ways to get a van
If you’re looking to get a van for your business, you might automatically think about van leasing. Until recently, that was the only real option on the table.
However, nowadays you’re more likely to see two alternatives: van leasing or van subscriptions. While these look similar, there are some key differences.
These mean that they suit different types of business.
Van subscription vs van leasing: a side-by-side comparison
The table below highlights the key differences between van subscriptions and traditional van leasing, set out side-by-side:
The main takeaway so far
The key difference between van leasing and van subscriptions is flexibility versus long-term commitment: leasing prioritises fixed pricing over several years, while subscriptions prioritise adaptability, in case your business needs to change.
A van lease is a fixed-term vehicle finance agreement designed for businesses with predictable, long-term needs.
A van subscription offers greater flexibility, often with shorter commitments and bundled monthly costs, which can suit businesses whose requirements may change.
What is van leasing?
Van leasing is a fixed-term vehicle finance arrangement. You agree to lease a van for a fixed period and pay a set monthly amount for the use of the vehicle.
Typical features of van leasing usually include:
- Fixed contract length (normally 24–60 months)
- Monthly payments that cover the vehicle only
- Service & Maintenance not included as standard
- Early termination fees normally apply
- Slightly lower costs reflect longer-term commitment
What is a van subscription?
A van subscription offers a more flexible alternative to traditional leasing.
Instead of committing to a longer-term deal with more add-ons, you pay a single monthly fee to access a van, with options to make changes if required.
Van subscriptions typically include:
- Shorter-term options and/or rolling agreements
- Monthly payments covering both van and services
- Lower upfront commitment and flexible plan-building
- Slightly higher costs reflect inclusiveness and flexibility
DriveSimple provides van subscriptions for UK businesses. A good way to understand van subscriptions is to select a vehicle, and customise a plan.
Which option is better for your business?
There’s no single best option. It depends on the type of business you have, and how certain you are about your future needs.
Van leasing may suit businesses with a long track record and predictable usage.
If you’re pretty sure that your requirements are going to remain the same for years to come, you may be willing to bank on that to secure the cheapest leasing option.
However, if you’re a new, or growing business - or one likely to be impacted by seasonality, the economy or varying demand levels - van subscriptions are often a better fit, as they are more adaptable.
Cost differences to be aware of
Leasing often appears cheaper at first glance.
This is partly because monthly payments usually cover only the vehicle. Once you’ve added in things like Service & Maintenance, the picture might be different.
But another reason for lower sticker prices is that leasing companies tend to offer cheap deals if you’re able to guarantee that nothing will change - and are willing to sign a financing deal with their bank on that basis.
While that can work well for long-standing operations with a predictable future, there is always a risk of locking in for a low price, then remaining liable for payments for the remainder of the contract term even if circumstances change.
Subscriptions often (but not always) cost more per month. This can be attributed in part to the fact that Service & Maintenance are usually included.
But when subscriptions are pricier even with the same services offered, that might be because you’re making a business decision to pay a little more each month in the knowledge that there is more scope to make changes if needed.
How DriveSimple fits in
DriveSimple provides van subscriptions designed for UK businesses seeking flexibility and transparent monthly costs.
We’re committed to inclusive pricing. We’ve created this comprehensive van subscription pricing guide, to cover all the pricing differences between subscriptions and leases.
It also includes advice on how to compare sticker prices, and a worked example of a subscription price vs. a lease from a big provider.
Next steps
If you’re comparing van leasing and subscriptions, you can review vans currently available on subscription, learn more about why DriveSimple exists, what we offer and who we are there to serve, or explore our van subscription FAQs.
