Should You Buy or Lease a Van?
Are you thinking of getting a new car for your business? For many businesses, a van is essential and so it important that, economically, you choose the one that is going to be right for your business’s needs and matches in line with your finances.
While buying a van, or a car for that matter, used to be the most popular way of getting a vehicle, having a van on finance is not always a great option for many people. It is normally pretty easy to spend time choosing the lovely new van that you want, but then working out how you are going to afford it can be a little trickier. This is where leasing comes in and this has become extremely popular in recent years as a way to drive a lovely new vehicle.
For more information about the differences between buying and leasing and what the advantages are of this, be sure to carry on reading!
What Is the Difference Between Buying and Leasing a Van?
There are some fundamental differences between buying a van and a leasing a van and they are actually quite different ways of owning a vehicle. When you buy a van, you will either be paying for it outright in cash, or you will be taking it out on finance. Paying for it in cash is the preferred option, however, for most people this is not something that is going to be feasible and so the majority tend to choose the financing option. This is essentially a loan which you pay over an agreed length of time, with interest, and at the end of this period you will own the van outright.
Leasing a vehicle is a great alternative for those who cannot afford to buy a vehicle outright. When you lease a vehicle, you will be paying a specified amount every month for a set period of time which is usually around two years. The main difference with leasing a van is that you won’t own it at the end and instead you will hand it back to the van leasing company. With these monthly payments, you will be covering the depreciation value of the van. With some leasing deals, you may also have the option to buy the van for a lump sum at the end.
The Advantages of Buying A Van
There are many advantages to buying a van. Firstly, if you are buying with cash then you may be able to haggle on the price a little more as the sales people will want to secure that deal, which means a better deal for you as you are in the better position. What’s more, if you already own a van, you might want to consider trading it in to save even more on your purchase and the biggest advantage is that the car is yours and an asset that you can do with as you please. Finally, when you buy a car, you won’t be restricting your mileage which is something that many people don’t like when they are leasing van.
The Advantages of Leasing a Van
So, is leasing your van the best way? Well, for most people, it likely is! There are a number of advantages to leasing a van and the main one is the monthly fixed cost associated with it. Every month, you will know exactly how much it is that to have to pay and so there shouldn’t be too many nasty costly expenses that are sprung on you since they are new vans.
One of the main advantages to businesses leasing out a van is that you won’t be paying out any maintenance costs as the van starts to depreciate in value. What’s more, when you take out a leasing package, many will also include a maintenance package and breakdown cover which means even more saving for your pocket. If the van should break down due to no fault of your own, you have the peace of mind knowing that the company will fix it and cover these costs, which means you won’t have to worry about losing any more business too.
Leasing vehicles tends to also be the best option for those of you who just simply like being able to drive around in a new van every few years and the luxury and convenience that leasing brings. Once your leasing term has finished, you can ten decide whether you want to buy the van outright if this is an option, return the van, or return the van and then take out a new leasing contract,
In the long run, leasing is definitely a great option. You can spread payments out over time, there are no extra servicing costs and it also removes a lot of the risks that can come with paying for a van outright and owning a business.
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