November 20, 2020 at 9:52 AM
When it comes to running a business, there will come a time when you need to add a vehicle or upgrade your existing van but if you are constrained to a limited budget, investing in a brand new vehicle might be at the very last thing on your to-do list. Purchasing a brand new van, in most cases, will cost you around £15,000 or more.
Thankfully, as long as you carry out diligent research, purchasing a van that is way cheaper is possible. This is where used small vans would come in. In reality, the market is filled with numerous used vehicles and choosing the right one might be a confusing task for you. Do not fret, we will tell you what you need to know and where to begin.
As a business owner, you may already be aware of VAT. This is a value that is added to various goods and services which goes directly to Her Majesty’s Treasury. The applied rate on most goods and services is 20%.
This rate is also applicable whenever you purchase a used small van. This additional value will be outlayed to you in a cost breakdown upon your purchase. Most of the time, this additional value can be reclaimed with the help of your accountants.
On the other hand, if you decide to use the van privately, your company can claim only part of the VAT that corresponds to business purposes. For instance, if your current van is used for business half of the time, you can apply to claim half of the VAT that you have paid.
You might be wondering how this added value is applied to used vans. It will depend on several factors and categories: the added value may be charged to you during the point of purchase and the validity of your claim may depend on where you bought the used van from. This paid duty is categorised into three;
A vehicle dealer that is not VAT-registered. If you decide to buy from non-VAT registered businesses, dealers, private individuals, traders or entities, your vehicle purchase will not be charged with VAT but this would also mean that you are not qualified to apply for a VAT reclaim for that specific vehicle.
A VAT-registered vehicle dealer that adds 20% VAT on your used van. If upon purchase you are charged 20% VAT from VAT-registered businesses, dealers, traders or entities, this added value must be outlayed clearly in the paperwork so that you can reclaim this value later on.
A VAT-registered vehicle dealer that adds VAT on a margin outline. If VAT-registered businesses, dealers, traders or entities have bought a vehicle from a source that is not qualified for VAT reclaim, for instance a private individual, they have to pay the VAT using the profit they earned from that specific vehicle and charge you the VAT based on that margin. Although you are paying a certain allocation of VAT, your billing statement will not outlay any VAT payment and will be treated as an unqualified item. This means that you are not qualified to reclaim VAT for this vehicle.
It makes sense to buy from a trusted and reliable vehicle dealer as they can offer you a wide array of options or an exceptional post purchase service and allow you to take advantage of their wide network. For instance, if you have a preferred vehicle brand, the vehicle dealer can show you all their latest models at various price points. If you need to customise your used electric vans, you can ask them to modify it according to your specifications.
Another benefit of staying with approved dealers is the fact that they can help you with the resale value of your vehicle when the time comes. They can also offer you various initiatives,financial services, regular servicing and access to their repair facilities. Wouldn’t you agree that this could help make your life so much easier?
Aside from inspecting the complete service history and the present condition of the used van, you could also take note of the mileage that the vehicle has accumulated. There is no such thing as ‘good mileage’ for used vehicles because mileage is simply an indicator of how far the vehicle has traveled. There are other factors that you should prioritise over it such as the steering wheel capability, the condition of the air-conditioning and etc.
If you come across a cheap used Ford van for sale with high mileage, do not be put off immediately. If that vehicle had served as a delivery van, most of its miles could have just been accumulated running on city motorways with one cautious driver and regular vehicle maintenance. This could be a good bargain compared to grabbing a van with low mileage, a reckless owner and no regular servicing.
If you are lucky enough, you may find a used van that is rather fitting to your business. It may come with bespoke racks and shelves that are great for organising goods and machinery however, you should thoroughly inspect the vehicle and determine how it was used by the previous owners before taking it on under your fleet.
If you want to know how used small vans for sale can support your business, give the guys at Big Van World a call today!