The choice between buying and leasing depends on your business’s financial situation, long-term goals, and usage requirements.
Buying a Van
When you purchase a van, there are no mileage restrictions, and you have the freedom to customise the van to your specific requirements. However, buying requires a substantial upfront investment, and you’re responsible for all maintenance and repair costs, which can be significant. There’s also a risk of depreciation affecting the van’s future resale value, and your capital is tied up in the asset, potentially limiting other business purchases and investments.
You also need to choose between buying a new or second-hand van. New vans offer the latest features, warranties, and reliability, making them a solid choice for businesses that prioritise cutting-edge technology, long-term dependability, and minimal maintenance hassles. However, they come with a higher upfront cost and rapid depreciation. On the other hand, second-hand vans are more budget-friendly, allowing businesses to conserve capital, and they depreciate at a slower rate.
Leasing a Van
For those considering van leasing Bristol, there are a few things to think about. Leasing a van usually has lower upfront costs as typically a lower down payment is required compared to purchasing a van outright. This can free up capital for other business expenses or personal needs.
Many leased vans are still under manufacturer warranty for the duration of the lease, which means you won’t have to worry about expensive repair bills for covered issues. With a lease, you don’t have to be concerned about the van’s resale value, as you’re not responsible for selling it at the end. This can protect you from potential depreciation losses.
If you are van leasing in Bristol, you can typically claim VAT on a van lease if the van is used exclusively for business purposes and your business is registered for VAT. Learn more about self-employed expenses and claiming here.
If you are considering van leasing Bristol, remember leases may come with mileage restrictions, and you won’t own the van at the end of the lease term unless you choose to purchase it.