There are benefits and drawbacks to leasing a van, but the same can be said for purchasing.
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 additional risk.
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.
At the end of the day there isn’t a one size fits all 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.