Leasing a van or buying
There are benefits and drawbacks to leasing a van, but the same can be said for purchasing. In this article we’ll be shedding some light on the pros and cons of van leasing vs. buying so you can make an informed choice as to which is best for you.
Buying New or Used?
If you’re lucky enough to have bought a new vehicle before, you’ll understand how it feels to sit in the cabin, turn the key and drive away in it for the first time – there’s nothing quite like it and you’ll be left grinning for weeks. Buying gives you an asset and a new vehicle(s) can improve your company image too, which may be important depending on your industry. The unfortunate news is that new vans are expensive and they need to be paid for up front; whether that’s from your own (or business) funds, or by some kind of finance agreement. This is when buying used can seem like an appealing alternative and you could save quite a bit of money up front, but by doing so comes with additional risk. The used van market’s a bit of a minefield and you could be left pulling your hair out soon after closing that deal that really was too good to be true!
Take into Account the Overall Costs
The first thing you should do when considering buying a new vehicle or leasing a van is compare the overall costs between the options you have. If you’re buying a van outright, this means calculating how much the vehicle is likely to depreciate by in the time you own it, the maintenance and servicing costs, insurance, fuel, roadside assistance etc. Leasing a van only includes the costs associated with the vehicle for the length of the lease which is covered by your monthly payments, fuel and insurance. Like any new vehicle, you’ll still be covered by manufacturer warranties and any other cover they provide in the same way you would if you purchased a new van. Bundling together a number of different packages with your van can be arranged by a contract hire agreement – make one fixed payment each month that includes all the additional cover you choose.
Why Not Both? Lease Purchasing
If you’re torn between leasing a van for business and buying one you could benefit from the best of both by lease purchasing a van. A lease purchase begins just like a normal lease, but at the end of it you purchase the van and keep it as your own. By doing this you can keep your monthly payments low and treat the vehicle as your own with no mileage restrictions. You might even be able to afford a better vehicle or a higher spec model than you could afford if you didn’t lease purchase.
At the end of the day there isn’t an option that will be best for everyone as it all comes down to personal circumstances. If you’re still unsure about which finance option is best for you, or you’d like to discuss your possibilities with an expert, get in touch and we can point you in the right direction.