March 31, 2022 at 4:17 PM
If you're self-employed and need to transport goods or equipment, a van can be a great investment. But before you buy, there are a few things you need to consider. This article will outline the pros and cons of using a van for business as well as list some tips on what to look for when making your purchase. So whether you're in the market for your first van or are considering upgrading, read on for all the information you need.
If you are a sole trader, buying a van for business purposes can benefit you in several ways. Here are some of the perks you can get by investing in a business vehicle.
Among the best perks of owning a business, a van is that it gives rise to better productivity levels and more efficient operations. A business van can take care of all your business needs in a hassle-free way. If your business relies heavily on travel for its revenue, then having a reliable fleet vehicle on the road is crucial for success.
Having your business van allows you and your team to make deliveries on time or complete work on time with minimal effort. If you are efficient in what you do daily, then your productivity levels are also likely to improve. This means that you can better achieve your set targets on time.
Another main benefit of owning a business vehicle is that you can reduce costs in the long run. By acquiring a business van, you can drastically reduce the costs that would normally be incurred for hiring third parties for delivery services or running errands. A business vehicle will enable you to stop relying on third parties who may charge you hefty fees for delivering supplies or transporting personnel.
Additionally, a business van means no more postponed appointments or missed client meetings and other business opportunities. Not being able to arrive on time for your business dealings can impact the reputation of your business.
Having your van can also reduce downtimes. Time is money, and a company car means that you can choose the best and most time-efficient routes. Consequently, you can increase your productivity and avoid operational delays.
Having your business van can help you make an impression on potential and current customers or partners. It is an effective way to increase the visibility of your business each time you’re on the road. Branded vehicles can prompt locals to make a mental note of your business, particularly if your products or services are something that they might think would be of use to them when the need arises.
Typically, van branding is only possible with vehicles that you own. So if you are asking yourself, “Should I buy or lease a van for my business,” this is an essential factor to consider. Read about Used Van Leasing here.
A company vehicle can be used for different purposes depending on your business. For this reason, investing in a company van can be beneficial, as it helps you meet the varying needs of your business. It can be quite handy if you need to attend meetings or run errands. It is also useful for emergencies. If you have employees, a company vehicle can also serve as a way for retaining current personnel and attracting new ones.
Although there are several perks to buying a business vehicle, it can also have its drawbacks. Learn more about them below.
The most obvious con to buying a business vehicle is dealing with the hefty upfront fees. Small businesses can find this particularly challenging. For those whose businesses are just starting or have a low cash flow, in particular, you might find it tricky to find good car deals that fall within your budget. One should also remember that a car is a depreciating asset and that its value will eventually diminish, so that should be taken into account.
Owning a vehicle means that you are the person who is responsible for maintaining and keeping it in good working order. Again, this can be challenging for small businesses with a low cash flow.
Maintaining your company car year-round will be necessary. The costs for this can quickly add up. Maintaining the vehicle and paying for repairs and routine maintenance can significantly impact your bottom line. You will see the benefits of these expenses in the long run, but the process could take time. Read Tips to Reduce Your Fuel Bill here.
There is a substantial increase in liability with a company car if you have many employees using it. As a result, this could mean increased insurance costs for your business. This could also increase your likelihood of encountering legal headaches in case an accident occurs.
Do you intend to use the van for hauling goods and supplies, or will you use it for transporting people? Determining the purpose of the vehicle will help you find the right van for the job more easily.
2. Size and capacity
Ensure that the van you pick can meet your business needs. Choose one that can best fit your cargo or one with adequate seating capacity. Read on the differences between petrol, diesel, hybrid, plug-in hybrid or electric vans here.
3. Comfort and safety
Aside from having crucial safety features, also look for a van that can offer a comfortable ride for passengers and drivers alike.
The best way to buy a van for self-employed individuals depends on the situation. If you’re prepared for a long-term commitment, then you can opt to purchase a van outright instead of leasing, especially if your business has the cash flow to do so.