If you start a new business, or you want to improve the current one you have, you also have to understand the importance of choosing a van for it, so you can have enough capacity when shipping the goods, or for traveling with the workers or other team members when needed. Many business owners struggle with the decision if they have to buy a new van, or they can use the leasing option. Some of them consider renting as the best one, especially if they don’t need to travel a lot, or they don’t have anything to ship to the post office or their customers.
In order to decide which option is the best for you, you need to understand what is leasing, and what is buying. Let’s go with the first one:
Leasing a van for your business
This is a good option for new and small businesses, who can’t afford to buy the vehicle by paying it at once. So, these people are signing a lease deal, and they take the vehicle, but still need to pay fixed monthly prices for some period, for example, a year, or even more, depending on the contract. The financial provider, no matter if that’s a bank or someone else, even an individual, has a whole right to take the van back if the other side doesn’t accomplish their obligations from the contract.
Also, this person is the legal owner of the vehicle, but the owner can be moved to the other person if they have a deal for that. Before you make a decision, you need to read more on this topic and see what options do you have.
Buying a van for your business
This is the best way – you have the money, you choose the van, you get the ownership documents, and you leave the store or the seller without any additional obligations to them. Once the van is yours, it’s on you to track the needed fixes and provide regular maintenance. If you don’t need it anymore, it’s on you to sell it, or dispose of it properly if it’s too old or damaged.
The decision on whether to buy or lease depends strictly on you, and the circumstances around you, like why do you need it, how much you can afford for monthly payments, for how long you will need the van, and so on. But now, as you understand the difference, probably it would be easier for you to make the final decision.
Both of these options have advantages and disadvantages, but you are the one who needs to put them together and see which one will work better for you. So, let’s see what are the pros and cons for every option:
Pros of buying a van
1. You are the owner of the vehicle and you can decide what do you want to do, without asking anyone for allowance.
2. You can maintain the way you want, change the color, use additional gear, and drive it everywhere you want and need.
3. Once you pay for it, it’s yours, and you don’t have anything additional to pay to the previous owner or the vehicle salon. Even though it can be a big expense, you can plan your budget better with this option.
4. You don’t have any limitations on how many miles/kilometers you need to pass daily, or how much weight you can put in it
Cons of buying a van
1. It’s a huge expense at once, and you need to carefully plan the budget when you decide if you want to buy a new or used one.
2. Maintenance costs can be pretty huge, including the regular repairs and changing the old parts with new ones.
3. The first years can be pretty expensive too, until you get used to it, test all the available options for gas, washing, cleaning, and storing while not using.
4. If you get in a crash or the vehicle is too damaged, you need to dispose of it properly, which can be an additional cost for you too.
And now, we will talk more about the leasing option and its pros and cons too:
Pros of leasing
1. You split the expenses into monthly payments, and that’s pretty easy for the budget, especially if you are limited with the money. Even the deposit is affordable too.
2. The depreciation costs are not on you, so you don’t have to worry about that.
3. The maintenance options are covered with the contract, and you know where do you need to take it if something goes wrong while using it.
4. You can choose the exact van you prefer if the agreement allows you to do that.
Cons of leasing
1. There will be damages you will need to fix by yourself, and that can be some costly addition to your regular expenses.
2. The vehicle is not yours, as long as the agreement is active. Some owners decide to sell it to the user under specific conditions, but until then, it’s not really yours.
3. It affects your credit history, so you need to keep this in mind when deciding to lease a van.
4. You are not allowed to modify the vehicle in any way. Also, some speed and mileage limitations may apply, if the real owner decides to do that.
So, if we try to sum up all these things, we can’t even say which one is better for you, without knowing your financial power, and the purpose of this lease/purchase. You are the one who needs to bring this decision up, based on the facts and realistic expectations.
If you can afford to buy a new van, we think it’s better to do that, since you can always change your mind, sell it, or repurpose it for something else. You don’t have that options if you choose to lease. We are sure you will make the right choice. You only need to understand the benefits and negative sides of both options, and then make a decision based on it.