Should your Business Buy a Van or Lease one?
When you run a business there are many things that you have to budget for, and managing what you pay out is essential if you want to make sure that your profits and your cash flow are healthy. There are many businesses that need vans in order to carry out the business activities – delivery companies, plumbers and landscape gardeners are just a few of these, and each vehicle that your business owns is something that needs to be paid for of course.
There are two main options when it comes to getting the vehicles that you need for your business. You can either buy them outright or have them on lease. There are pros and cons for each, and it entirely depends on your business and what works best for it as to which option you pick. Here is a brief overview of the positives and negatives of each:
When you buy a van outright it is yours. You don’t have to worry about keeping up with paying for it monthly and what you do with it (as long as it is legal!) is up to you. It is also an asset that your business will own.
However, buying a van is a big outlay for a small business, especially if you are just starting up, and getting the amount of money together to buy one can be hard and put a strain on your business finances. It is also worth bearing in mind that vehicles depreciate in value with age, so it might be hard to get a return on your investment if you want to sell them.
There are many companies like this van leasing Gloucestershire based company https://www.mphvehiclesolutions.co.uk/van-leasing that can provide you with a lease van. When you lease a van, you need to put down a deposit and then pay monthly – as you would if you were renting a house. If you are a smaller business and money is tight, this is a much better option to help you to manage your cash flow.
You can also trade the van in with no obligation to buy it when the lease comes to an end.
Of course, you need to ensure that you keep up with the monthly payments for the vehicle, and not owning it means that it is never something that belongs to the business.