Should You Buy or Lease Your Business Van in 2018? Here’s the Answer

There are many things to consider before you start your own business and one important area that needs a lot of focus is the logistics part. If you intend to carry out your own logistics or if you are in fact getting into a transportation business, then logistics play an important role.

The most difficult part is where you have to decide between whether to buy a vehicle for your business needs or simply lease it. While buying a van might suit some, others might simply prefer to lease a van. Both of these options have their own advantages and disadvantages. Hence, it is up to you to weigh the pros and cons and decide which one suit you better.

Buying You Business Van

Advantages

  • You get to own your own van, which turns out to be an asset.
  • Moreover, you get to decide what you want to do with your van and are free to make any modifications to the vehicle.

Disadvantages

  • You are responsible for the vehicle’s maintenance, damages, and repairs.
  • You will also incur a certain amount of loss due to the depreciation value that your vehicle will experience as time passes by.
  • It only requires you to make a one-time payment and after that, you do not have to be concerned with regular lease payments or be bound by any other contractual terms.
  • You can invest this money in buying some other asset, which does not have any depreciation value attached to it.

Leasing Your Business Van

Advantages

  • You do not have to be bothered with the maintenance costs, as it lies on the shoulders of the leasing company. Hence, the cost of usage is kept to a minimum.
  • You could end up buying the vehicle all to yourself after the lease period if the contract permits you to do so.

Disadvantages

  • You need to pay a contract fee regularly, which might add to your monetary burden.

However, if you intend to lease a van, then it is recommended that you find someone who carries out “van leasing no deposit” scheme because this will not require you to make any lump sum amount up front and help you plan your part payments throughout the lease period.