When it comes to acquiring a van for your business, you typically have the option to buy or lease. Both methods have seen major spikes and dips in popularity over the years as business owners are always looking for the best way to save money and build out their commercial fleet in the most cost-effective manner possible.
While leasing offers some benefits and has often been a preferred option among business owners, purchasing a second hand van can be a smart investment for your business. Here are some of the benefits of buying a van for your business over leasing:
Long-term savings
While leasing can offer lower monthly payments, over the long-term, purchasing a van can be more cost-effective. With a purchase, you will eventually own the vehicle outright and will no longer have to make payments. This can save you money in the long run, especially if you plan to keep the van for several years.
Customization
When you purchase a van, you have the freedom to customise it to meet the specific needs of your business. You can add shelving, drawers, and other features to increase storage and organisation. You can also add branding and graphics to promote your business. With a leasing agreement, you have to return the van in the condition it was when you first picked it up and in most cases, you can accrue hefty fines for any changes or damage caused over the leasing period.
No mileage restrictions
When you lease a van, there are typically mileage restrictions that you must adhere to in order to avoid extra fees. This is typically decided at the start of a leasing agreement and while this isn’t an issue if you know your likely mileage over the next few years, it is unlikely most of us will. Businesses are ever changing, especially in the current climate with recessions and Brexit causing businesses to continually change their output and delivery to adapt to a new market. When you own a van, you can use it as much as you need to without worrying about mileage restrictions.
Flexibility
Flexibility is becoming a key focus with commercial vans right now as we begin to see the rise of electric vans and the general improvement of the technology is making a switch more viable for business owners. When you own a van, you have the flexibility to sell it or trade it in whenever you want. With a lease, you are locked into a specific contract and may have to pay penalties if you terminate the lease early. This flexibility is more noticeable with second hand commercial vans as the up front fee is lower and this provides a bit more freedom in terms of when to move to a new van.
Tax benefits
When you purchase a van for your business, you may be eligible for tax benefits such as depreciation and interest deductions. These benefits can help to reduce your overall tax burden and save you money. If you are working with a larger scale commercial fleet, these benefits can quickly add up and improve your general outgoings significantly.
Overall, purchasing a van for your business can be a smart investment that offers long-term savings, customization options, flexibility, and tax benefits. While leasing may be a good option for some businesses, purchasing a van can be a better choice for those looking for a long-term solution that can be tailored to their specific needs.