There are many options for choosing whether to buy or lease a minibus. The process can feel quite intimidating if you don't know what decision will be best for your business. Generally, people tend to buy a vehicle so they own it outright. However, leasing may be a more feasible option for the company. If you do want to own the minibus, alternatives such as lease-purchase are also available. This route allows you to see how you get on with the minibus and decide if you want to purchase it at the end of the contract. Leasing can provide you with more flexibility and allow you to keep cash within your business. There are varying factors regarding each option. This article will explain each of these and help you make an informed decision.
Leasing a minibus gives you more freedom than buying outright. Buying costs more, and there is no going back once you've made that payment. You can choose the period you own the vehicle over and the repayment times with leasing. Having this freedom and flexibility means you will have the minibus for a period that suits you. It can even start bringing in profits for you before you've started making payments on it.
Buying a minibus will mean that you have more control over it regarding insurance, modifications, etc. However, this could cause you problems when you come to sell it. Leasing a minibus is much less of a commitment.
The initial cost of leasing a minibus is more beneficial than buying. Your business may need the minibus to start or continue trading; but not have the funds to purchase one. Leasing gives you full access to the minibus without forking out a big lump sum to buy one, which could damage your business' cash flow.
If you choose to lease a minibus, you get the advantage of having the top choice of vehicles. Rather than being tied to specific dealers, we can help you find a vehicle that may have seemed initially out of your price range.
Vehicles depreciate at a high rate. If you buy a minibus, it's risky as you've tied up your valuable capital in something that you are unlikely to get a return on investment. Leasing allows you to save on VAT as you only pay it on the amount you rent, rather than the amount you pay on the vehicle as a whole. Again, this will be beneficial for your cash flow.
You can access helpful extras such as maintenance and roadside assistance. Some companies even offer 24-hour breakdown assistance, meaning that you don't have to stress about getting and paying to fix the minibus if anything happens to it.
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If you choose to lease a minibus, there are many different options for you to go about it. You could finance the minibus through a business or personal loan, lease agreement, lease purchase or contract hire. This means that you can choose the best option for you, depending on how you want to spend the money, whether you wish to own the minibus at the end of the agreement or only need it for a few months.
As mentioned several times throughout this text, leasing a minibus is an excellent way for you to protect your cash flow. It allows you to keep funds within your business as you gain access to a necessary asset without putting other expenses at risk (such as staffing costs, rent, tax bills, etc.).
Love Finance can fund an extensive range of assets. There is no ceiling to how many vehicles you can lease, so if you need a fleet of minibuses, that option is there for you. We have a dedicated team of experienced account managers and a wide panel of lenders who are there to find you exactly what you want. Leasing is ideal for getting the exact vehicle you need without spending loads of money and putting your business at risk.
Finance allows you to keep cash within your business while getting the assets or vehicles that you need to grow.
There are several other choices that you can make regarding getting finance and leasing. Read about these in our other blog posts here:
Everything You Need to Know about Van Finance
Leasing Assets For Your Business
