Should you lease or buy a van for your business?
You will learn
- Things to consider when getting a van for your business
- The pros and cons of buying a van
- The pros and cons of leasing a van
You need transport, but you might not know the best way to get a van for your business. You might be in a great position financially and are able to buy a vehicle outright, which is great. However, you might not have that much money to hand but need the van to be able to run your business. If that’s the case, you could look into commercial vehicle leasing instead.
Whether you lease or buy a van depends on your business and its operations. Both have some great benefits, and it’s up to you to decide which is right for your business. We’ve pulled together some of the pros and cons of leasing a vehicle for your business.
Pros of buying a van:
- It’ll be completely yours and an asset for your business
- You’re not restricted to a mileage limit which you might be with a lease
- There are often deals which you can use to bring the overall costs down
- It should come with a manufacturer’s warranty to make sure it doesn’t have any problems for a specified time period
- You can put your logo and contact details on it which can be a useful marketing tool
Cons of buying a van:
- It’ll cost you a lot to buy up front
- You’ll be responsible for services, maintenance costs, insurance and tax
- It will start to lose value the second you take it away from the dealer
- There are so many options available to you it can be daunting and hard to choose which will be best
Pros of leasing a van:
- You won’t have to worry about maintenance costs
- Leases often come with breakdown cover included so you won’t be left stranded if something goes wrong
- Some lease businesses offer a lease purchase which gives you the option to buy the van once your lease has come to an end
- Spreads the cost so you don’t need to pay out a large sum all at once, fixed monthly costs can make budgeting easier
Cons of leasing a van:
- You’ll have to abide by the terms of the contract, i.e. keep within the set mileage limits
- You’ll need to make sure the van is returned in good condition, and that wear and tear is kept to a minimum
- There might be fines if you don’t meet the terms of your contract
- You might need to pay some admin fees at the start as well as a deposit but these will be much less than buying the van outright
- You might have to commit to a long term contract that won’t necessarily change as your business needs do
There are lots of pros and cons of leasing a vehicle for your business and it’s ultimately up to you to decide which option is best. Commercial vehicle leasing can often turn into a purchase once the period of lease is over, so you could get the best of both worlds. You might also want to consider a hire purchase agreement for getting the big vehicles and machinery you need to operate efficiently and you can find out more about hire purchasing here.