Is there such a thing as cheap Van Leasing?For many labour, trade and delivery-based business, a commercial van is a must. If you’re looking for a cheap van, leasing is a viable option – here’s why.
For many labour, trade and delivery-based businesses, the use of a commercial van is essential. Without their own vehicle, many tradespeople would have no business. However, for many, the expense of getting that vehicle can prevent them from starting a business at all. If you’re looking for a cheap van leasing is a viable option. It saves you having to find a large chunk of cash and it allows you to get mobile, faster.
But is it a viable option for you and how cheap is van leasing exactly?
In simple terms, van leasing is where you pay an initial deposit, followed by a fixed number of set payments, over a period of months. At the end of the period, you can pay a lump sum to own the vehicle outright, or you can opt to hand back the vehicle and take out another lease on a newer van.
Van leasing is a sensible financial option for your pocket
Many start-up businesses simply cannot afford to hand over a huge chunk of their business finances, to get a vehicle. For many, even if they have the available cash to buy a vehicle, find they can’t afford something new or even reliable. Buying an older vehicle can become a further drain on your income, as you need to factor in an increased need for repairs and they are not so great when it comes to fuel economy.
Cheap van leasing enables you to make a considerably lower initial payment, followed by set affordable monthly payments – something a start-up CAN afford. But what makes it a truly sensible option is the fact you can get your hands on a new van, as soon as they’re available – meaning the newest technology, great fuel economy and new vehicle warranties.
Van leasing is a sound financial move for your business too
When you own your own vehicle, you need to factor in depreciation; as the vehicle gets older, the value of it drops considerably. When you opt for the cheaper, van leasing option, you don’t own the vehicle, so it doesn’t appear on your balance sheet. Another benefit is the ability to offset the costs against VAT and Corporation Tax. If you’re VAT registered, you can also claim back the VAT on your payments.
Another key financial aspect is that of budgeting. When you lease a van, you know exactly what you need to set aside for it each month, as the payments are a set amount. Many van leasing companies also cover the costs of maintenance too, so there’s no unexpected bills to pay either.
Is there such a thing as cheap van leasing?
When it comes to van ownership, if you have the funds to invest in a vehicle outright AND you don’t need those funds for your business, it makes sense to buy your vehicle outright. However, if you’re like many tradespeople, you simply don’t have the available cash spare to do that – and that’s where van leasing is not only a smart financial move, it’s also a sensible business decision to make, as well. If you’re on a budget or are just starting out and are looking for cheap van ownership, leasing for many, will be the best option.