Finding The Best Van Deals: Buying Vs Leasing

August 9th, 2021

So, you’re in the market for a new van. You are probably researching all the best van deals, looking at cost to buy and at the cheapest van leasing companies. Everyone wants to make sure they get the best deal, but what are the benefits of buying vs. leasing?

Buying – What are the benefits?

Traditionally, if you needed a new van, you would shop around for the best van deals and buy.

A new company van can be a huge asset to many businesses – allowing for transport of goods, crew, materials and tools. It can also help add an air of professionalism when you turn up to jobs and client meetings.

Owning your vehicle will mean that you have total control over what you would like to do with it when it is no longer useful. You can sell it on and invest in a new vehicle, or use it for its entire lifespan. Ownership however does mean that you will be responsible for the disposal of the vehicle when the time comes.

One of the key benefits to buying and owning your vehicle is that you are free to modify it however you please. For example, if you are looking to sign-write the van, or perhaps install internal racking. Any modifications made after the fact on most leasing deals will need to be reversed at the end of the lease, so owning is definitely more beneficial if you need to make changes to your new vehicle.

Buying also has another benefit over most leasing deals, in that you aren’t subject to any mileage restrictions. If your business requires a lot of travel, or perhaps you work in removals or deliveries, the freedom of uncapped mileage due to ownership may be a more appealing option.

So, what about costs?

Your company may be doing well, or you may have saved up, and are happy to spend a large chunk of capital for a new company van. Buying means you pay upfront and immediately take ownership of the vehicle – however owning also means you have invested in an asset that will depreciate in value over time.

Benefits of Leasing Deals

Many companies are now seeing the benefits of cheap van lease deals as a cost-efficient alternative to buying.

Looking into leasing deals can be a great option for sole traders, start-up companies, growing businesses, and those looking to build up a fleet. As opposed to buying, leasing deals allow you to spread the cost of the new vehicle across an agreed term, rather than forking out a large chunk of capital upfront.

The financial benefits of spreading the vehicle costs across the term of leasing deals are; manageable monthly payments set within your budget and full visibility of future payments allowing for full control of your business outgoings. In addition, if your business is VAT registered, you will be able to reclaim the VAT paid on the lease vehicle.

If you’re looking at cheap van lease deals, one area that differs from buying is ownership. Whether or not you can own the lease van at the end of the contracted term, depends on the finance agreement you choose. So, look into the detail of each financing option if you are interested in ownership.

Hire Purchase

Hire Purchase vans are owned by the lessee, who will pay off monthly instalments of the total vehicle cost. This means you can take advantage of the cost-efficiency of leasing deals while also taking advantage of the benefits of ownership you would have had from buying.

Finance Lease

Finance Lease, as a financing option, offers flexible options for the end of your lease. So, even though you will not own the van for the duration of the lease, you have an option to do so at the end. Alternatively, if you are not interested in ownership, Finance Lease also gives you the option to sell the vehicle on at the end of the lease term, or trade it in and part-exchange for a new vehicle lease.

Contract Hire

Contract Hire is an ideal option for anyone not interested in ownership. If your business would benefit from trading up to a new vehicle every few years, and you want to do away with the hassle of disposal, then Contract Hire represents a great option.

Buying Vs Leasing

Whether you decide to buy or lease, depends entirely on what you would like to get out of your vehicle.

If you’re interested in ownership, you have the capital to pay up front and you’re not interested in trading up to a newer model in a few years’ time – then perhaps buying is a good option for you.

Alternatively, if you’d rather spread out the costs of your vehicle, upgrade at the end of term, and do away with the hassle of disposal – then perhaps you should look at which leasing deals would suit you and your company.

Interested in cheap leasing deals? Looking for more information on the types of leasing deals available to you? Then please contact us, or call 0117 962 5314 to speak to one of our Van Specialists