By Lisa Brand
Setting up your new business can be stressful enough and having a van is an essential tool of the trade as are your tools and equipment. Without a van, you can’t get to jobs and you’ll have nowhere to store your tools.
Buying a brand-new van from a dealer can be very expensive, especially if you are just starting out. You may even be contemplating a used van and although it will certainly be cheaper, you need assurance that the van you are purchasing is going to be reliable and won’t break down on you when you need it the most.
Dealers will be very enthusiastic on selling you the advantages of why you should buy a brand-new van from them, but don’t be fooled by their sales talk. However tempting they make it sound, don’t rush out and buy a van on impulse. You will need to remember that the price of your van will dramatically decline in value as soon as you drive it off the forecourt and continually in the years that follow.
You should think of your van as a business asset and an expense that is going to depreciate in value almost immediately. You need to think smart and ask yourself, do you really want to spend your hard-earned business funds on something that will lose money when you could have another option? Leasing.
There are many advantages to leasing a van rather than buying one. Let’s look at some of them.
1. You’ll have the most advanced van
Once the lease on your current van runs out, you have the option to lease a newer, higher specification model and not have the worry of having to sell your current older van at a loss, just so you can buy a more up-to-date model. When the lease comes to an end, simply return the van and collect the keys to your new vehicle!
2. Accessible funds
Having funds available in your business is essential, as without it your business won’t be able to move forward and grow. The big chunk of money that you would have otherwise used to purchase a brand new or used van can therefore be used to invest in other business opportunities as and when needed.
3. It’s cost-effective
The up-front cost is low and by leasing a van your payments are spread out monthly. The leasing company also cover the costs of servicing and any repairs including new tyres or problems with your brakes.
Leasing a van also eliminates the risk should your business go into financial difficulty, as your van can’t be included as an asset to repay any debts that the business has accumulated.
4. Tax incentives
If your business is VAT-registered, you are entitled to claim ALL the VAT back on the monthly payments.
Most leasing companies also arrange your road tax for you, which is another hassle taken care of.
When you file your tax returns, your van rental costs can also be claimed back as an expense. Leasing expenses can be claimed back as a tax-deductible cost, whereas, if you owned the van that would be regarded as a debt.
5. Includes manufacturer’s warranty
One of the advantages of leasing includes a full manufacturer’s warranty on the vehicle (providing you remain within the mileage limitation and the lease period is 3 years or under).
Should a problem arise during the warranty time frame then you simply take it along to any of the manufacturer’s workshops to be repaired.
Some lease companies also include insurance as part of the deal.
As well as saving you money along the way, most small businesses feel that convenience is just as important to them. You will receive full support from your leasing company throughout your contract for any problems that may arise.
Most lease companies will also deliver your van directly to you free of charge and then collect it from you at the end of the lease. You will also have the option to buy the van at the end of the contract if this is something you are interested in.
7. Added extras
As part of your agreement with the leasing company, most companies permit you to have internal racking, signwriting and additional security added to your van rather than you having to independently source these services through another company.
Leasing could be the way forward
Although the thought of owning your own van may sound good, spending a big chunk of your hard-earned cash on something that is going to depreciate in value pretty much straight away just doesn’t make good business sense.
By leasing a van, you won’t have to worry about any additional maintenance costs and your payments will be spread out monthly.
Hopefully, this post will help you make the right decision when you are looking for a van for your business.
If you’re interested in any of our gas training courses, please take a look at our website courses or contact us on 01923 253 866 for more information.
What are your views on leasing a van? We’d love to hear your thoughts on the subject. Maybe you have just bought/leased a van or are in the process of purchasing one? – tweet us @BarrettBellLtd.