November 20, 2020 at 9:05 AM
If you are running an enterprise that calls for the use of vans, finding a resolution about where to acquire them can be a challenging task. You might be torn between the idea of investing in a single van or a fleet of vans and what option could be considered as the best one for you and your business.
As a business manager, you may have contemplated purchasing or hiring vans. If you haven’t considered van leasing yet, it is an option that is gaining more popularity because of the benefits that it can bring.
Wondering if van leasing is a viable option for your business? We have collated a list of the pros and cons to help you decide.
Van leasing or contract hire is an arrangement that is set within a specified period of time in which you, as an entrepreneur, would make monthly instalments of an agreed amount. Some dealers may require you to pay a deposit but you can always negotiate for a deal that would be beneficial for both you and the vehicle dealer.
Before making a final decision, take into consideration the financial status of your enterprise: is it capable of liquidating and purchasing new vehicles? If your enterprise is incapable of that as of the moment, acquiring new vehicles through financing or van leasing is a feasible option.
There are several considerations you need to know when looking at used van leasing. Primarily, a considerable amount of cash flow will be released right away. If you prefer to pay in cash, you are obliged to pay for the VAT of the leased vehicle upon usage. The more expensive the used van, the bigger the VAT.
In most cases, the deposit value is usually 10% of the vehicle’s leasing value. To lighten your burden, you can negotiate to forgo the deposit or spread your VAT payments together with your monthly instalments.
Meanwhile, another benefit of leasing used vans is the accumulation of tax-deductible lease payments. That is why several accountants have advised several clients to opt for used van leasing if it is possible
Just like everything else, van leasing with no deposit comes with its own set of advantages. Let us take a closer look at some of them.
Calculable monthly rates with little or no deposit. When a leasing agreement is closed, a pre-agreed monthly cost and deposit shall be paid. Depending on your negotiation, the deposit can be waived altogether.
Flexible terms. If within the agreed period of time you decide to upgrade your fleet or make a few changes on the lease agreement, the terms can be rearranged to suit both parties.
Fewer worries. With van leasing, you do not have to worry about the eventual depreciation of the vehicle’s value nor the need to trade-in or sell them after their application is due. All you need to do is return the vans after the agreement has been completed. Aside from that, you do not have to worry about repairing or maintaining them because the van dealer will take care of it for you.
Several options are available. The great thing about van leasing is the fact that the latest and most popular van makes or models are available for lease.
Business benefit. Your investment in van leasing is tax-deductible. This can help you gain a significant amount of savings in the long run.
With van leasing, you may have to consider the cons of selecting such an agreement.
Aside from second-hand vehicles, new vans are also available for leasing. The process of van leasing is rather simple. You just need to find a reliable and trusted vehicle dealer, choose a vehicle or fleet of vehicles, solidify the leasing terms, pay the agreed monthly instalments and return the vehicle at the end of the agreement.
With that in mind, it only takes five steps to start this venture. When it comes to choosing the make and model of the vans, make sure it will fit the purpose it is intended to do. After that, negotiate a deal that will prove beneficial for you and the vehicle dealer. After closing the agreement, the new van will be delivered to you. You get to drive and enjoy it in any way you can. When the lease agreement comes to a close, all you need to do is return the vehicle in good working condition. The process really does sound simple because it really is!
Leasing Vans for Business
Want to get the best price deals for van leasing? Check out Big Van World. They offer a wide collection of used cars and vans of various models, makes and prices that are updated daily. Every day, there is a deal that will be sure to fit your needs.
If you want to learn more about leasing used vans for business or personal use, why don’t you talk to the experts at Big Van World today? You can make a general enquiry, get a quote on a van of your choice or grab a limited offer as soon as they are out. You can contact them on 01793 751866 or fill out their contact form here.