We all love to get the best value for our money, especially when it comes to our businesses. Getting a van for your business is no exception. They’re a commitment moneywise and can eat out a large portion of your company budget.
So, should you buy a brand new van outright? Or could leasing one be the right choice for you? For some businesses, van leasing is a great alternative. At Van Ninja, we have a wide range of vans in all sizes to fit your business’ needs. Here, we highlight the benefits of buying and leasing to help you decide which is right for your business.
What’s the difference between buying and leasing?
The difference between buying and leasing is pretty much what it says on the tin. When you buy a van, it’s yours. The payment is done with a dealership, and you then own and are responsible for the vehicle.
When you lease a van, you pay a monthly fee for use of the vehicle. Most leasing contracts require you to return the vehicle once the contract is up.
Buying a van
The main attraction of buying a van rather than leasing is that you have total ownership of the vehicle. Whatever you want or need to do with that van is entirely up to you, and you don’t need to worry about any contractual obligations. This means you have the option to sell the vehicle if necessary.
Naturally, a good, reliable van can come at quite a cost, though. Paying upfront can affect your company’s budget. These vehicles also tend to depreciate in value over time.
Another detriment to buying is that you’re responsible for the vehicle’s maintenance. Any damages, accidents, or unexpected garage trips will need to be covered by you, the owner. This can rack up more costs and end up being more of a worry in the long run.
Leasing a van
Leasing a van means you forgo ownership, and this can bring a host of unexpected benefits and flexibility. Van leasing with us here at Van Ninja means you can choose from contracts of two, three, or four years, with customisable monthly payments to suit your budget.
These monthly payments come at fixed rates, so you don’t have to worry about prices going up. There are also no worries about vehicle depreciation either. Plus, with certain contracts, breakdown cover is included. This means less fretting over maintenance as well.
Another advantage to leasing is that once your contract comes to an end, you have the choice to renew it or upgrade to the latest model or a larger size van. This means you can enjoy our current options, such as the Fiat Scudo Tecnico, and once your contract expires, you can shop around our fleet for your next vehicle to lease.
For businesses that are VAT registered, leasing a van comes with more great news. Leasing means you can claim back the monthly payments as deductible expenses, which is preferable compared to paying a large sum to own it.
That said, if you prefer to have ownership control of a vehicle, be mindful that a leased vehicle won’t be yours to own. In addition, when settling a contract for your lease, you must predict and forecast the mileage the vehicle will travel, as going over could incur extra charges. Similarly, while maintenance is handled by the leasing company, any damages the vehicle sustains are still your responsibility.
Buying or leasing a van is an individual business decision that will vary. Buying may be cheaper if you plan to keep the vehicle without upgrading in the long term, as you’ll have ownership of it. The main problems will come when it needs replacing or maintenance, which are costs you’ll have to front yourself.
On the other hand, van leasing is a great option for those who don’t want to spend a large sum on a vehicle, and you have the option to upgrade to a new van at the end of your contract. Plus, a lot of the hang-ups that come with owning the vehicle, such as added maintenance charges and anxieties around value depreciation, aren’t present when leasing.
So if you think van leasing could be the best option for your business, why not have a look around our fleet and see which option at Van Ninja is right for you?
