If you've decided to take the next step and purchase a van, or another commercial vehicle for your business, the decision between buying or leasing can be a daunting one. The traditional norm is to buy a vehicle outright, so your first instinct may be to buy the vehicle so you own it. However, if you look into it more, leasing may be a more viable option for your business. There are pros and cons of each, this article will help you make the best decision for you.
With a lease, you get all the benefits of having the best, most affordable vehicles and not having to worry about the time-consuming issues of maintenance and services - all of this is outsourced.
Buying a fleet means all your valuable capital is tied up in an asset that depreciates more than anything else - vehicles. One of the great benefits of leasing a van is that it allows you to pay VAT on the amount that you rent for rather than the amount you pay for the vehicle as a whole. If you go out and buy half a dozen vans for £30,000, for example, you’re going to pay 20% of that extra as VAT, by leasing these half a dozen vans, you pay the VAT as you rent the vehicle, which drastically improves your business’ cash flow.
Better yet, when your commercial vehicle fleet is on its way out, the usual expenses associated with disposal are passed onto the lease company. With Love Finance, there is no limit to how many vehicles you can lease or what make, model or year that van/vans (or any other commercial vehicles) happen to be. Our commercial vehicle experts will tailor a bespoke package that constantly works for you. At the end of the agreed lease, there are several options for you to expand your fleet or upgrade to newer vehicles - whatever suits you.
Buying will cost more outright, whereas leasing gives you more freedom and flexibility. A lease period typically spans twelve months to five years, though this can be decided by you. This means that you can use the van for a period of time that suits you, and even start earning on it before you've started paying for it. If you choose to buy the vehicle outright, you may have more control over the modifications and insurance; but it is a much bigger commitment and you may run into problems down the line when it comes to selling it.
If you're still unsure about which is the best decision for you, read more here.
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