There are lots of different business types that would require a van – whether you are looking to become a professional tradesperson, a logistics specialist, or run a mobile food truck. One of your biggest considerations to make when you are running a business of this description is deciding whether to buy or lease the van. There are pros and cons to each approach, and here’s an evaluation of both.
Leasing Your Van
When businesses are first starting out, leasing is often the path that they choose to go down. This is largely down to the fact that they do not know how successful the company is going to be, so they do not want to make a big initial investment too early. First of all, when you start looking into business lease deals, you already know that you are not going to have to pay as much as buying the van outright, so there is less of a risk involved straight away. Of course, you still need to keep up with all of the monthly repayments, so you need to make sure that this is factored into your initial business plan. You also take on less responsibility with regards to the maintenance costs, which you will need to cover all by yourself if you go down the path of buying rather than leasing.
On the downside, there may be more restrictions involved when it comes to customizing the van for your own individual business needs and requirements. For example, you might struggle to add vinyl customisations to your van, which will affect how you brand yourself and your vehicle. There may also be limitations on what you can do within it, which can mean that you won’t be able to operate certain businesses with it. Due to these reasons, you may feel like you are not as free and there could be a worry always eating away at the back of your mind all the time. Leasing agreements also sometimes come with a set of restrictions when it comes to the amount of mileage that you can cover, which again might not suit various businesses as it’s likely that ventures such as delivery drivers or even workmen will get a lot of mileage from their vehicle.
Buying Your Van
Of course, we have already mentioned the initial upfront cost of buying a van, but you know that you have the freedom to do anything that you like with it as the vehicle is entirely yours. Also, even if you are on a payment plan with the van, you know that you are going to actually own it at the end of the contract. This is simply not the case when it comes to a leasing deal, as you are paying towards something that you are not going to own in the end. This means that buying a van is a much more economical option as time passes, so it’s a really good option if you’re sure that your new business will be something that you’ll be doing for a very long time. Additionally, when you buy a van, that vehicle becomes an asset to your business, which can increase the overall value of it. This can be extremely useful if you’re ever in a position where you want to sell your business.
On the other hand though, if your business is not a success, you are going to end up with a van that you do not actually need, and this could also end up being problematic. It’s for this reason that it’s best to perhaps start off with leasing a van while your business finds its feet and then invest in your own after the first few years. Of course, if the business does fail, there is always the option to sell the van, although this may make you a little bit more wary with regards to how much customisation that you do along the way as you have one eye on the value of the van and how your customisations may negatively impact that.
Hopefully, this guide has provided you with the additional level of information that you need when it comes to deciding to buy or lease a van for business. What’s best for you will be different from someone else, so it’s always important to consider your own situation and requirements and evaluate the various factors mentioned to help you figure out if leasing or buying a van will be the best decision for you.
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