Archive for Leasing

The Hidden Cost of Buying Second-Hand Vans

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?

Buying Vs. Leasing A Vehicle – 5 Must Read Facts

The time has come for you to get a new car, and you’re already feeling overwhelmed. Maybe you’d been sure you were going to buy, but then a trusted friend or coworker suggested leasing. Perhaps they lease themselves and couldn’t stop raving about it. If you don’t know anything about leasing vehicles, it can be a little intimidating, especially if you’ve heard any of the myths and rumours about leasing. So what’s the difference between buying vs. leasing a vehicle? Here, find five must-read facts that can help you make a decision.

Leasing is usually cheaper—at least upfront.

Surprisingly to some, leasing is usually a less expensive option upfront. The down payment you make on a lease is often negotiable and far less than what you’d put down to purchase a car. There are often fees incurred when you return the vehicle—primarily if you didn’t keep to the mileage agreement you made when you signed your lease—but in the moment, leasing is a more budget-friendly option.

You can get newer cars more frequently if you lease.

Because of the budgeting, leased vehicles are often newer vehicles; and, since you turn them in every three years, you can continually get the newest car available if you lease. If having the latest of everything is important to you, or if you’re considering about having the most up-to-date safety considerations in your car, leasing might be a better option. It’s also a great option if you don’t want to be burdened with the physical vehicle in a few years’ time; once your lease ends, you turn the vehicle back in and walk away.

If you don’t know where you’ll be in 3 years, don’t lease.

Because breaking a lease can be so difficult, it’s best not to lease if you think you might not be able to see the terms of the lease through. While there are options to breaking a lease in emergencies or if your circumstances change, planning to break a lease is not the best bet. If you’re going to want to be rid of the car in a year or so, buy instead. There are more options available to you.

If you drive long distances frequently, buying is better for you.

If you routinely drive more than 12,000 miles a year, buying is likely the most economical solution for you. Leases have a mileage limit of around 12,000 miles each year built in, and going over that mileage limit can incur heavy fees and extras. You can negotiate for more miles in your lease upfront for a little extra, but if you know you’ll be regularly driving far more than that, buying is a better choice.

Buying vs Leasing a Vehicle: If you put a lot of wear and tear on your vehicle, buy it outright

If you’re going to do a number on your car, be prepared to pay extra when it comes time to turn in your lease. If you know that you’ll be using your car for labour, purchasing your car is probably a better bet.

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Tim is automotive blogger who loves to write on various topics related to automobile industry.Recently he got a chance to write and review a new and unique leasing from 1Alp known as Novated Lease Packaging.