Why is leasing a better option than buying a van?
If you have just invested a chunk of money in a new venture, it is important to analyze another important investment – a van. There are several sellers offering some great deals on the purchase of a van, but what you must take a hard look at your balance sheet and decide if you can afford this significant investment at this point in your business. Leasing is one practical option that many start-ups consider for their transport needs. When you lease a van, you are normally renting it for a monthly fee and won’t own in technically.
For a new venture leasing is advantageous for the following reasons:
- No strain on the coffers: Since you pay only a monthly fee, the cost is spread over a period, giving you more freedom with your cash which can be used for other expansion purposes. All that is needed is to put up a small amount as a fixed deposit.
- No maintenance headache: Normally the leasing company covers all the maintenance costs saving you the trouble of upkeeping the van which includes breakdowns, repairs, and managing wear and tear. You can choose a new vehicle once your contract expires.
- Choose your own vehicle: You can select any vehicle according to your needs and budget, unlike when you purchase and are stuck with a certain size vehicle which might be too small or too large.
- Tax advantage: You can claim tax returns on therental when you file your taxes.
But there are a few drawbacks to leasing that you must be aware of before you make the final decision.
- You will be bound by mileage restrictions and often the penalties for excess mileage are hefty
- Certain companies insist on long-term contracts which might not be suitable for a business growing at asteady
- Eventually, the overall cost of leasing is always higher than the actual cost of the vehicle should you buy it outright.
So, weigh the pros and cons of buying and selling a van and if the balance tilts to leasing check out cheap van leasing Glasgow for all your leasing needs.