Is It Better to Buy or Rent a Van?
With van costs on the rise, you may be wondering whether it is worth buying or renting a van for your business. To help you decide, here are the pros and cons of both buying and renting a van:
Buying a Van
Purchasing a van for business use can either involve paying the entire cost upfront or splitting the cost up into monthly payments over several years with a business contract purchase. The latter is a common option for small business owners who are VAT registered and wish to own their own vehicle.
- The vehicle you purchase is yours as long as you do not miss any payments
- You can sell the vehicle or trade it in if you wish to buy a new van
- You can make any changes you wish to the van
- You will be in charge of any maintenance or repairs which are costly
- Monthly van payments can be significantly higher than a long-term van rental
- The car will depreciate in value
- You may need to take out a loan to purchase the van
Renting a Van
Renting a van on a long-term basis is a popular choice for small business owners who wish to pay less for a commercial van, as long-term van rental is affordable. It is also a more flexible option, there are various van rental packages to choose from, and you can upgrade your van after the contract is up.
- The monthly cost is much lower than a traditional van purchase or loan agreement
- You are typically not responsible for any repairs or maintenance, as they are normally included in the contract
- There is no need to sell the van when you want to change it, as you can simply choose another van to rent
- You can drive a van that you may not have been able to afford otherwise
- There are some monthly or yearly mileage limits, so you need to make sure you choose the right mileage when agreeing to a contract
- It can be hard to get out a van rental contract easily, so it’s important that you choose the right vehicle for your business
- You won’t be able to sell your vehicle
Overall, the better option is a long-term van hire, as it is a much cheaper option, and you can also upgrade your van after your contract is up, without the hassle of selling it. Renting a van also offers great flexibility for your business, as you can change the vehicle type as soon as the contract is up. This will ensure you find the perfect van for your business without committing to large payments over a long period of time.