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It’s the question almost everyone asks when it’s time to replace their van: should I lease, buy or hire?

The truth is, there are great reasons for each, and some drawbacks too. At www.vanleasing.com we offer all three options so we’re well placed to give you some insight into what might work best for you.

Leasing

  • Low upfront costs
  • New or nearly-new van
  • Low, fixed monthly payments
  • Full warranty
  • 100% tax deductible
  • Minimum commitment of 2+ years
  • Subject to a full credit check
  • A new upfront payment every time

Buying New

  • It's yours to sell
  • A brand new van
  • No mileage restrictions
  • Costs less over time
  • Full warranty
  • Large upfront costs
  • It loses value quickly
  • You are responsible for all maintenance works
  • You need to pay for wear and tear items

Buying Used

  • It's yours to sell
  • No long term contracts
  • No mileage restrictions
  • It costs less over time
  • High maintenance costs
  • Reliability issues increase with vehicle age
  • You need to pay for wear and tear items

Hiring

  • No long term commitment
  • Switch vans easily as your business grows
  • A flexible way to fill short term requirements
  • Higher monthly costs
  • Restricted mileage
  • End of contract damage assesment

Now you know the benefits and drawbacks of each option, how can you use this information to make an informed decision as to what might work best for you?

The first thing you should do when considering buying, hiring 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.

Secondly, weigh up the overall costs against how important the benefits of each option are to you. For example, if you are just starting out and want to dip your toe in the water for 6 months, you might decide the flexibility of a 6 month hire works best. If you are established business with a regular and long-term requirement for a van then buying or leasing might be more cost-effective.

At the end of the day there isn’t a one size fits all option as it all comes down to personal circumstances. If you’re still unsure about which 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.