As every business knows, vans can be essential to a business but they can also be extremely expensive. It’s understandable that some companies choose to purchase used or second-hand vans as this seems to be cheaper than buying a brand new van – but is there another option?
In this article we discuss why it may work out cheaper to look at van leasing instead of purchasing a second hand van for your business.
There are always more maintenance issues with old vehicles; the more miles on the clock usually means the more maintenance and repair costs you will need to pay out. With a leased van you will have less maintenance issues as it’s a newer van and no MOTs will be required as it’s a brand new vehicle.
You will tend to find that the older vehicles are out of warranty and therefore you will pick up the tab for maintenance on the vehicle, not the manufacturer.
It’s important to remember that your vans represent your company. If you turn up for a job with a beat-up and run down van the customer will presume you are a run-down company, turn up in a brand new van and you will show customers that you care about the appearance of your company.
If you have a fleet of vans it looks nice if all vans are the same, but when purchasing second hand vans you are unable to be choosy about the vans your drivers have and it can result in having a hotchpotch of vans which lacks professionalism.
We all know that older vehicles emit more particulates than newer models and then can also be less fuel efficient. There are two concerns here – firstly you are paying more on fuel than you would if it was a newer model and secondly you may find your vehicles banned from the London Low Emission Zone.
Another concern with a second hand van is that you are locking away the capital. You are putting money into a van and when it comes round to selling the van you will lose money on it – this money could be put into improving other areas of the business.
In conclusion, purchasing a second hand van can hit your pocket in more ways than just the purchase of the vehicle due to maintenance costs. Purchasing a brand new van will cost more money but there will be less maintenance costs, however the money will be needed up front for the vehicle.
Another option is van leasing, as we know when you purchase a new vehicle you need a lot of money up front and the value of the van depreciates immediately but through van leasing you do not need a large amount upfront and the value depreciation is not your concern as after a few years you can take it back to the van leasing company and start again with a brand new van if you choose?