NEWSDESK
Jonathan Beadle, Van Ninja
Buying vs Leasing vs Renting vans:
which is right for your business? The trusty white van can be the lifeblood of any business.
According to 2021 statistics, there are 4.6million vans in Britain with commercial vehicles accounting for 13.1%of all vehicles on the road.
Drivers frequently praise their reliability, spaciousness, practicality and driving experience whichmakes thema sage choice for transporting tools and equipment.
The decision between renting, leasing and buying will often be determined primarily by budget, but the required time to use it and the purpose for the acquisition will also impact the decision.
With some insights fromvan leasing company, Van Ninja, we walk you through the pros and cons of each option and help you decide which is best for your business.
Buying
Quite simply, buying a vanmeans it’s yours to keep and all that entails. Over the longer term, this is likely to be themost cost-effective option, giving you something to show for yourmoney and that you are able to sell on if needed.
Buyingmeans driver freedomand total ownership – you aren’t limited to how manymiles you can clock up and are free to do whatever you want with it. There’s no need to worry about contractual obligations ofmaintenance or specific usage.
Spread the cost acrossmonthly repayments tomake the purchasemore
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affordable or buy outright using cash or a business loan if you have the resource and don’t want to be tied down over a long period. Buying a van outrightmay also afford you greater flexibility over the make andmodel you drive. Statistically, the iconic Ford Transit remains Britain’s most popular van – an exceptional all- rounder and a symbol of quality and dependability.
For businesses with fewer resources, buying a vanmay be a poor option. This comes at quite a substantial initial cost and will depreciate in value over time. Similarly, buying alsomeans you’re responsible for your vehicle’s maintenance. Any damages,MOTs, or regular services will all need to be covered by the owner, with potential costs accumulating over time.
Leasing
Van leasing is another popular option which foregoes van ownership but can bring its own benefits and flexibilities. Leasing involves fixed contracts of varying lengths (typically two to five years) with customisablemonthly payments to suit all
budgets.Monthly payments are fixed in rate, whichmeans leasers don’t have to worry about prices hiking in the face of ongoing inflationary pressures.
Depreciation will also not be a problemat the end of the contract as drivers can simply choose to renew or upgrade in a similar way to a phone contract. This
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means prospective drivers can always have the pleasure of driving a new vehicle, including electric vans as the UKmoves towards decarbonisation.
While some vehiclemaintenancemay be included in the contract, be wary of using your van for potentially hazardous tasks or in high-risk environments. Any damage incurred will still be your responsibility. In addition,mileages need to be agreed prior to your lease – exceeding these can bring penalty charges. Typically, this can be anywhere between 3p–30p per extramile with some companies often adding an extra 20%VAT on top of that.
Renting
Finally, for shorter-termrequirements, renting a van can also be a solid option. This can often range froma single-day rental to a longer-termarrangement of around threemonths.
This can be beneficial for those who don’t necessarily require a van for everyday business use but need for a specific reason such as furniture removal, waste disposal or helping childrenmove to university.
Another pro of renting is that drivers often have less responsibility for the vehicle with insurance, servicing and damage repairs often included with your provider. Unsurprisingly, this will likely be reflected in the price.
Written by Jonathan Beadle Commercial Manager at UK van leasing company, Van Ninja.
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