Those in the trade industry, transport sector or courier/haulier business often use a fleet of vans for work. If you’re in such such sectors, then buying or leasing vans would be necessary.
Unsure about which option is best for you? Let’s take a look at the advantages of both van buying vs van leasing.
What is the difference between buying and leasing?
- Buying a van means the vehicle belongs to you. You’ll either pay for it outright or get a loan to pay it off.
- When leasing a van, you don’t own it. Instead, you pay a monthly fee for use of the vehicle. (Some schemes allow you to pay a lump sum at the end of the lease period to buy the van outright).
Buying a van: what are the advantages?
If finance is not a hurdle, buying a van makes sense for commercial usage needs. If you are in a position to apply for vehicle loan- you should go for it. The main benefits of purchasing a van include:
- The first benefit of buying a van for business usage is the unlimited flexibility. You can use it the way you want. You may use it for your company work and in your spare time, rent the vehicle too. Buying a vehicle like a van makes it easy for you to apply for traders insurance policy.
- Once you buy a van you can modify it to suit your business and usage needs. You can fit various accessories and attach external parts. Using special paint and banners on the exterior is also hassle-free. This can help you get a better price when you sell it later or exchange for a new van.
- If you buy more than one van for the company, you can negotiate with sellers and actually get a bargain deal. This is possible if you buy the vehicles during major festivals.
- The commercial vans have resale values. So, you may be able to get a significant amount in exchange when you buy a new vehicle after using the first one for some years.
Renting a van: what are the advantages?
Not every business owner has the money to buy a van or more than one vehicle. For them, renting vans is a more economical choice. In recent years, car and van leasing has become increasingly popular within the trade sector.
Remember, you’ll still need to get van insurance for using a leased motor. Of course, there are some advantages of leasing a van.
- When you have a modest budget, but still want to use a high capacity and attractive looking vehicle for business, van renting is the better choice. You can pick from a broad range of models and lease a van that matches your needs within budget.
- You may want to change a van after using it for some time. This can prove costly if you’ve bought a van. With leasing, you can simply opt for a new van for an upcoming period after your leasing period expires.
- Many lease companies offer a choice of a straight lease or a lease purchase. With lease purchase, you have the option to buy the vehicle out the end of the lease period.
- Maintenance and breakdown cover is often included in most lease schemes. If your vehicle does break down, the company will fix it and cover the cost.
At Business Choice Direct, we’re experts in providing cost-effective and bespoke trade insurance. Get in touch for a tailored quote.