Benefits of Buying and Leasing a Van: A Brief Comparison
An overwhelming selection of commercial vans is now available in the UK market. However, choosing from the commercial vans is the sweeter part of the job, while deciding on which financing option to choose is the trickier question for the small and mid-size business owners. This is because small business owners often have to cope with the increasing overhead costs, the rising costs of raw materials etc. In a recession-phobic business world, the key concern of small business owners boils down to the money part of procuring vehicles for business, either by buying or through van leasing companies.
Want to replace your old delivery van?
Are you willing to trade in your old van and get a new vehicle for your business? If yes, it’s a great rebranding decision you should stick to. However, if you are in a tight spot as you cannot decide which is better – buying or leasing, here below is a brief guide for you to take prudent decisions.
Key differences between van leasing and buying
Buying is what we usually do when we want to obtain consumer durables, daily groceries, luxury items etc. We either pay by cash or credit or debit cards. Sometimes, we also take out loans for buying proprieties such as office vans. Buying means you get possession of something in exchange of money, whereas leasing essentially means using a property (a commercial van, for example) for a limited period and for an agreed price for the entire period of using (the ‘rental’ usually paid periodically. However, leasing a van also comes with an additional option – you can buy the van at the end of the leasing contract period by paying a lump sum.
Which is a better option – buying or leasing?
Both buying and leasing are feasible financing options for procuring commercial vans to keep the operations running. Both the van financing options have their own sets of advantages. Here below are the benefits of buying a van vis-à-vis leasing a van.
Benefits of buying a van
Buying a commercial van can be beneficial for your business in a number of ways. Firstly, you can get a good bargain rate, provided you are buying the van in exchange of ready cash. You can trade in your van and save a lot on the new purchase. On the top of everything, you don’t have a mileage limit that works as an irksome reminder for people who lease commercial vans. It becomes an asset for your business. Sell it or trade it for a new vehicle, it’s your call.
Benefits of leasing a van
Leasing a van, on the flip side, has a myriad benefits that business owners can explore. Especially if you want to drive a new van every year, leasing is a good financing option. There are many companies that do rebranding by replacing older vehicles as it gives their customers the feel good about the company. Leasing slashes down the maintenance and repair costs. Straight lease and lease purchase, both options are available with the leading van leasing companies.
As a final point, buying means possessing a movable asset while leasing means sheer cost advantages. Business owners should compare car financing options on the basis of their precise requirements and affordability.