Business Leasing Advice: Buying vs Leasing a Van

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Whether you run a delivery business or any other kind of company for that matter, understanding your options when it comes to obtaining a van is essential. In the past, leasing was definitely the more expensive option, but in recent times this isn’t always the case, so don’t rule it out just yet as you might be ignoring an opportunity for significant savings.

That said; there are advantages to both solutions, but the decision you make will depend heavily upon your business model and how you intend to use the vehicle. With that in mind, this article has been written in an attempt to highlight the pros of each option and provide you with enough information to come to your own conclusions.

So, have a quick read through the following few paragraphs and I’ll do my best to help you out.

So What’s The Difference?

Buying a van means you will own it outright and so are responsible for its upkeep. You will have to deal with all maintenance costs as well as tax, MOT, and business insurance. Whereas leasing means you simply pay a monthly fee and leave all the hassle to someone else.

The Pros Of Buying

Obviously, when you buy a van outright it’s your property to do with what you wish. This means you’re free to have your business logo on the side, can make any adjustments you wish with regards to the engine or bodywork, and have no limitations on how far the van is allowed to travel.

Also, if you’ve already got a van, in most cases you can trade it in, thus bringing the cost down – a cost that can be listed as an expense on your tax bill.

The Pros Of Leasing

When leasing, you’re free to swap the van for a newer or more suitable model whenever you want (outside of contract). This will also mean that all maintenance tasks like MOTs and any repair work is the responsibility of someone else, all you have to do is let the leasing company know there’s a problem.

Making Your Decision

As I mentioned previously, the solution most suited to you will depend upon your business model, but there are still some universal truths that should be applicable to everyone. Buying a van outright can mean your firm takes a significant financial hit. Some vans cost upwards of £20,000, and the costs don’t stop there. You’ll need to pay for repair costs, tax, breakdown cover etc…

So, if you asked me which option would suit your business right now, I’d advise you all to try leasing first – even if just to test out different vans. It really doesn’t cost the earth, and could help you to make a much wiser decision relating to your long term solution.

I hope that helps!

Author Bio: The top deals on vans always come from leasing companies, and nowadays some even over a lease-to-buy solution, so you can try a van out for a few months before deciding whether or not you want to purchase it outright.