Looking for a new van for your business and not sure if leasing is for you? Not to fear, Leasewell run through five of the main advantages of leasing a new van.
Van leasing is quite a broad term can cover a number of different types of van lease, including: contract hire, finance lease and flexible lease and essentially applies to all types of van finance where you do not own the van at the end of the agreement. Van leasing is an increasingly popular way to finance a new van, with a host of advantages including:
1. Tax advantages
Frustrated by the amount of tax your small business pays? When you take out a van lease for your business you can reclaim the VAT on a quarterly basis, providing your business is VAT registered and you only use the van for business purposes. On completion of your tax returns you are also able to claim back the cost of the van lease rentals as a business expense.
2. Less stress and worry
You are likely to be relying on your van to keep the business moving, with issues to the van, resulting in downtime and lost money as a result. With a van lease you also won’t need to worry about getting an MOT providing you take out the agreement over three years or less and with it being brand new it should last a lot longer before requiring repairs. Your business needs a van it can rely on, which is almost a certainty with van leasing, allowing you to focus on other aspects of the business. There is also the option with contract hire agreements to add maintenance to the agreement, meaning all servicing and tyres etc are covered.
3. Spread out the cost of a new van with a van lease
If you’re an SME or sole trader, then your business may not have the capital readily available for a large initial deposit, for example when opting for hire purchase your minimum deposit is the full VAT of the van which can equate to a few thousand. Van leasing requires a far smaller upfront payment, usually three-monthly payments as a bare minimum and the cost of your monthly rentals will also be lower. This will help you budget for your spending and not increase the level of debt on the business too significantly.
4. Brand new van
One of the main reasons that people opt for van leasing, is the cost allows you to get a brand-new van that will work for all your requirements, whilst paying less. You can choose from top end brands such as Volkswagen vans and Mercedes vans and you will have a new van sat on your drive in no time. A new van will also project a more professional image to your company and clients and save repair costs associated with used vehicles.
5. All the latest technology
Technology is advancing at a rate of knots and by opting for van leasing over purchasing a used van, you will benefit from these advances. These include more efficient engines which are cheaper to run, infotainment improvements and driver assistance technologies which help to keep you safe when behind the wheel.