Van Leasing: What You Need To Know
Need to source some new or additional vans for your business? Considering van leasing?
For businesses where the transportation of goods or a delivery service is required, a fleet of vans can be crucial to the effective running of the organisation. Expanding or replacing your vans will require significant investment and managing that in a way that does not impact heavily on your business cash flow, can be tricky. If you’re currently in the process of procuring vans, you may want to weigh up the options of commercial van leasing and buying outright. It could help you to balance the books even when expensive assets such as vans are required to help your business grow.
Why Leasing a Van Could Help Your Business
You may initially think that buying your own vans for business use is the better option. It means you own the vehicles and you can do with them what you wish. But is this the most cost-effective option?
Benefits of Leasing a Van
- Small initial deposit means improved cash flow
- Small monthly payments spread across a pre-agreed term
- Access to brand new business vans that you may not have been able to afford when buying outright
- Hassle free maintenance service that forms part of your van lease payments
- Tax advantages
- Flexibility of accessing business vans quickly where buying more may not be an option
For a small deposit and manageable monthly payments spread across a pre-agreed time period, you will have full use of the vehicles. In addition, you’ll be able to access other services available via the van leasing company, which may include maintenance and repairs services, downtime management support, and an online commercial van leasing portal with which you can keep track of your lease contracts.
Maintenance Costs & Downtime Management
One of the main, and most costly, issues that may arise when it comes to using vans for business purposes is maintenance and repairs. Breakdowns can cost you even more money and harm the day-to-day management of your business, especially if you rely on your business vans for deliveries to customers. If your van breaks down suddenly, ask yourself:
- How much money will I lose if my vehicle is out of action for a day or more?
- Will I have to pay for a rental replacement in the meantime?
- Will I have to pay out for breakdown recovery and emergency repairs?
- Will it affect my relationship with clients if services are delayed?
Van Accessories Required For Business Use
Do you require specialised equipment or accessories for your van (e.g. racking, tail-lifts, beacons, welfare units or refrigeration units)? If so, make sure your requirements are known to your lessor. Vehicles can be specified with the necessary kit fitted and it can be funded as part of the contract. But, with extra equipment comes extra weight, so be careful that your van will not exceed its maximum permissible weight limit when loaded for business purposes.
Specialist equipment may necessitate your van having a bespoke servicing schedule, your leasing company should be able to manage the the servicing requirements associated with the vehicle and its ancillaries as well. Additionally, the cost of your maintenance management will be factored into your van lease agreement rolling all of your van leasing costs into one hassle-free monthly payment.