January 21, 2020 at 4:18 PM
Purchasing a van for use in your business is a major consideration for many small businesses. Whether you decide to purchase a new van or one that’s only had one careful owner for the past few years, the initial outlay can be surprisingly high.
To help deal with all aspects around a van purchase for a business and the financing of it, along with some unanswered questions about usage during the ownership period, we’ve provided some answers below.
Finance for Vans Self Employed
Financing is not just open to limited companies. There’s often finance for vans self-employed as sole traders and partnerships too. All regulated by the Financial Conduct Authority, you know that your business is in safe hands. It just remains to borrow responsibly, and not more than your business can afford to repay.
Financing is available to many businesses that either need to or prefer to borrow money to purchase a van. The idea with borrowing to purchase a van is that it spreads the cost over the useful life of the asset. Payments made often mirror the depreciation of the asset on the balance sheet. It’s also beneficial if the business is still a small one and needs time to grow.
Finding the money for a new or used van may be problematic, which could halt the expansion plans for the business when more vans are needed in the fleet to manage the growing level of business and transportation requirements.
New Vans for Sale 0 Finance
With new vans for sale 0 finance (0% APR for a limited time), it makes financing vans even more affordable for companies expecting higher revenues to support the loan payments. To keep payments lower, getting a great price is very important.
Whether purchasing a fridge van, crew van, MWB van, a tipper van, or something else in this vehicle category, you still want a good price. What factors into the price are the size and features of this form of business transportation.
Think about whether you want to purchase new or used. The mileage on a used vehicle indicates how much it has been driven and the possible level of wear and tear on it. But also think about whether it’s been stored outside overnight or in a garage where it’ll likely be in better overall condition even with the same mileage.
Learning a bit about negotiating well can make the difference between your business affording one medium size van or being able to stretch to something bigger, or with more of the needed features. See what terms are negotiable or could be added to the deal, like an extended warranty to create new points of discussion too.
0 Finance Vans
With 0 finance vans, there are often flexible terms from 12 months up to 5 years in duration. With affordable financing deals, it makes purchasing easier than going to a bank for a business loan to purchase a vehicle.
When going through a van retailer that’s already set up with this facility, getting a loan arranged to purchase transportation is much quicker with less hassle.
With finance lease vans, there are other questions that arise around van usage in business. This includes topics like how to keep unnecessary mileage down, relevant insurance policies, and whether it’s better to purchase one large van or two smaller ones.
We answer these useful questions below:
Proper route management is something that single truck or small fleet management might overlook. However, using a sat nav facility like a TomTom for trucks and vans can provide various benefits. These include:
Less mileage – When using efficient routines, vans skip inefficient driving routes that lead to higher miles and extra time. They skip bad routes - those that have height restrictions or other obstacles that will create further issues too.
Higher retained value – The value of the van will be higher than it would otherwise be. This is because the reduced mileage means less wear and tear on the vehicle as a whole. It’s likely to need fewer repairs when it’s driven for a shorter duration on delivery assignments too.
Saving on fuel – The fuel costs add up with van use depending on how large the van is, what it weighs, and the typical load it’ll be transporting too. By using better route management, it’s far less wasteful on fuel usage. Here we’re not just referring to choosing a more fuel-efficient van during the purchasing phase but on saving money on fuel due to better routing too.
Getting van insurance is in a separate category to car or home contents insurance that people are more familiar with and may have purchased in the past. It needs to be competitively priced. Insurers that primarily deal with other businesses providing commercial-led insurance policies often have good deals. When they compare their prices to that of their competitors and/or compare their quote to what their new business customer paid with another insurance provider the year before, they have a good point of comparison.
Actually, A-Plan Insurance surveyed new van customers about what they paid previously on van insurance and found from February to mid-year 2019, that almost two-thirds saved money over their previous insurer. That’s the kind of thing businesses like to see when they own several vans and want to keep their insurance costs reasonable.
When transporting goods from point A to point B, does it make sense for your business to have two drivers each with a van taking different routines making a series of collections or deliveries, or one driver and a single, larger van?
Financing two vans might end up more expensive than a single larger one. It really depends on what your needs are, the types of vans, new vs second-hand, and so forth. However, it’s worth considering the benefits/drawbacks to operating two vans over a single smaller one and the financial implications either way too.
For businesses, there are different things to consider with purchasing a van and operating it. Not only do drivers need to get enough rest with long drives to stay safe and legal on the road, but the cost of the van must be affordable for the business too.