Welcome to GroupM53 - Your Family Owned. Award-Winning dealer

Contact

Close
Contact
Commercial Vehicle Leasing - Header Image

Commercial Vehicle Leasing Explained: How It Works and Why It Might Be Right for Your Business

If your business relies on vans, pickups or company cars, managing your fleet the right way is key to staying competitive. One of the most practical ways to stay on top of costs is through commercial vehicle leasing.

At GroupM53, we specialise in helping businesses across the North West find the right commercial leasing solution. As a Ford Pro dealership and Transit Centre based in Birkenhead, we offer flexible finance plans on a wide range of Ford vehicles, from Transit vans to hybrid fleet cars.

In this guide, we explain how commercial leasing works, why it makes sense for so many UK businesses, and what options you have through our expert team. Whether you're looking to scale up, save money or reduce admin, we’ll walk you through everything you need to know.



What is Commercial Vehicle Leasing?

Commercial vehicle leasing is a long-term agreement that gives your business access to a new vehicle without buying it outright. Instead, you pay a fixed monthly fee to use the vehicle for an agreed period, typically between two and five years.

At the end of the lease, you return the vehicle, or depending on your agreement, you may have the option to buy it. Leasing helps you run a modern, fuel-efficient fleet without worrying about depreciation or resale.

Explore our latest Ford Commercial Vehicles




How Does Commercial Vehicle Leasing Work Step by Step?

Commercial vehicle leasing is a straightforward process, and at GroupM53, we’re here to make it as smooth as possible. Whether you’re leasing a single car or managing a growing business fleet, here’s how it works from start to finish.

1. Choose the Right Vehicle for Your Business

Pick the vehicle that suits your needs. We offer everything from the Transit vans and Ranger pickups to company cars and hybrid models.

2. Select Your Lease Plan

Decide on your lease length (24 to 60 months) and set your anticipated mileage. These factors determine your monthly payments.

3. Pay an Initial Rental

This upfront payment is usually the equivalent of 3 to 9 monthly rentals. A higher upfront amount can reduce your monthly cost.

4. Make Fixed Monthly Payments

You’ll pay a set amount each month, making it easier to manage your cash flow with no financial surprises.

5. Maintain the Vehicle

Add cover for servicing, MOTs, tyres and repairs to simplify your running costs and reduce admin.

6. End of Lease – Return, Renew, or Buy

Return the vehicle, renew your lease with a new model or, depending on your plan, purchase the vehicle outright.



Why Do Businesses Lease Instead of Buy Vehicles?

Leasing is fast becoming the go-to option for UK businesses that want greater flexibility, lower upfront costs, and easier vehicle management.

  • Lower Upfront Costs: avoid large purchase payments.
  • Fixed Monthly Costs: easy budgeting and better cash flow.
  • Access the Latest Models: regularly update your fleet with modern, fuel efficient vehicles.
  • No Depreciation Risk: return the vehicle at the end with no resale hassle.
  • Tax Advantages: lease payments may be tax-deductible. VAT-registered businesses can often reclaim VAT.
  • Maintenance Packages: optional servicing plans reduce downtime and admin.

The UK government has announced that the sale of new petrol and diesel cars will be banned from 2035. From then on, only zero-emission vehicles like electric or hydrogen-powered cars will be available new. So now’s a great time to get ahead of the curve and explore the benefits of electric driving.




What Types of Commercial Vehicle Lease Are Available?

We offer a range of leasing options to suit every kind of business, from small enterprises and sole traders to large commercial fleets.

Contract Hire

Straightforward leasing. You rent the vehicle, return it at the end, and upgrade if needed.

  • Benefits: fixed monthly payments, road tax often included, no risk of depreciation or resale hassle
  • Best for: businesses wanting predictable costs with no ownership

Finance Lease

You pay fixed monthly rentals and then sell the vehicle on behalf of the finance company. You keep most of the resale proceeds.

  • Benefits: lower monthly costs compared to outright purchase, tax-deductible rentals, flexible terms and mileage limits
  • Best for: businesses that want a return at the end without full ownership

Lease Purchase

Spread the cost with the intention of owning the vehicle at the end. Also known as hire purchase with a balloon.

  • Best for: companies that want ownership without large upfront costs.
  • Benefits: you own the vehicle at the end, no mileage restrictions, asset can appear on your balance sheet, VAT paid upfront (which may be reclaimed if VAT registered)

Ford Pro Leasing at GroupM53

We also offer a full range of Ford Pro leasing products to suit businesses of all sizes:

  • Ford Contract Hire: fixed rentals with no ownership responsibilities. Just hand the vehicle back at the end.
  • Ford Acquire: traditional hire purchase with ownership at the end, optional balloon available.
  • Ford Lease with Balloon: reduce your monthly cost by deferring a lump sum to the end.
  • Commercial Line of Credit: flexible, pre-approved credit line for businesses with multiple vehicles.

Our team will guide you through each product to find the best fit for your operations, cash flow, and long-term goals.

Explore Ford Pro Finance & Leasing at GroupM53



Things to Consider Before You Lease a Commercial Vehicle

Leasing can work brilliantly, but it’s important to plan:

  • Mileage Limits: Every lease comes with a set annual mileage allowance. Go over this, and you could face excess mileage charges. If you do a lot of long-distance driving or seasonal work that increases usage, speak to us about setting realistic limits from the start.
  • Vehicle Condition: You’ll need to return the vehicle in good condition. Fair wear and tear is expected, but any significant damage, like dents, deep scratches, or heavily worn interiors, could result in additional charges.
  • Choosing the Right Lease Term: Most contracts run for 24, 36, or 48 months. Shorter leases offer flexibility, while longer terms usually provide lower monthly payments. Consider what works best for your business cycle.
  • Early Termination Fees: Ending a lease early can be expensive. If you think your needs might change, ask us about flexible agreements or mid-term upgrade options.
  • Your Long-Term Goals: Think about whether your business would benefit more from regular vehicle upgrades, or from ownership at the end. We can help match you to the right type of lease based on your future plans.




Who Is Commercial Vehicle Leasing Best For?

At GroupM53, we work with a wide range of businesses, from sole traders to nationwide fleets, and leasing can be a great fit for many of them.

  • Sole Traders and Self-Employed: choose practical lease terms that suit how you work.
  • Construction, Delivery, and Trade Businesses: reliable, well-maintained vans reduce the risk of breakdowns that can halt operations.
  • Small to Medium-Sized Businesses: access newer vehicles without a large upfront cost, and keep planning monthly cash flow easy.
  • VAT-Registered Businesses: take advantage of tax and VAT savings.
  • Larger Fleets and Fleet Managers: keep running costs predictable and vehicles up to date, alongside access to the latest fleet management tech and support packages


Quickfire FAQs: Commercial Vehicle Leasing


Why Is A Business Lease Cheaper Than Personal?
Business leases often come with tax advantages and lower interest rates compared to personal leases. You may also benefit from VAT reclaims if your company is VAT-registered.

How Are Fixed Monthly Payments Calculated?
Costs depend on the vehicle value, lease length, mileage limit and initial rental.

What vehicles qualify as commercial vehicles?
Typically vans and pickups used primarily for transporting goods, such as the Ford Transit, Ranger and E-Transit.

Is a van 100% tax deductible?
Often yes, depending on the vehicle use and lease type. VAT may also be reclaimable for VAT-registered companies. Speak to our team at GroupM53 for advice on the most tax-efficient way to finance your vehicle.

Are All Leased Vans New?
At GroupM53, the majority of our lease vans are brand new. However, we also offer Pre-Registered Vans (Pre-Reg), which are nearly-new vehicles with minimal mileage at a more affordable price.

Are Tax And Insurance Included In Your Van Lease Contract?
Road tax is usually included in your lease deal. Insurance, however, is not included and must be arranged separately by the business or driver.

What Is a Pre-Reg Van?
A Pre-Reg van is a vehicle that has been registered by the dealer (usually to meet manufacturer targets) but has little to no mileage. These vans offer significant cost savings without compromising quality.

Is a Ford Ranger classed as a commercial vehicle?
Is a Ford Ranger classed as a commercial vehicle? Yes — but from April 2025, double-cab variants will be taxed as passenger vehicles for BIK (Benefit-in-Kind) tax purposes.



Is Commercial Leasing Right for Your Business??

If you want to drive new vehicles without tying up your capital, benefit from fixed costs, and remove the headache of depreciation and resale, then leasing could be the right move for your business.

At GroupM53, we specialise in commercial vehicle leasing and fleet solutions through Ford Pro, helping businesses across Birkenhead, Ellesmere Port, and the North West keep moving.

We offer expert advice, flexible lease options, and a wide choice of Ford commercial vehicles and company cars, with dedicated support every step of the way.

Whether you need one vehicle or an entire fleet, we’re here to help. As a Ford Pro Transit Centre, GroupM53 offers expert advice, flexible finance, and top-tier commercial vehicles to keep your business moving.

Contact GroupM53 Today

Browse Our Latest Vans and Fleet Vehicles