Your business budget is something that must be strictly adhered to, and so this means it pays to be frugal to ensure there is no over expenditure as the months go on. In this case, let’s take a look at your business vehicle.
When it comes to vehicles for your business, purchasing a new van might not work out as the most financially beneficial option. This is because depreciation in vehicles occurs so quickly, so it’s important to understand that owning your business vehicle isn’t an ideal option, you will never make money when treating your vehicle as an asset.
This is where leasing comes in. Not only is it an option you can tailor to your budgetary requirements but it’s also an inexpensive way of getting your hands on a brand new van.
The cheaper option
Let’s say you’re looking for a top spec Mercedes Benz Sprinter, the on the road price is around £30,000 for this make and model but through a site such as LeaseVan you could pay a basic monthly fee of £281 (on a four year lease) and not have to worry about the upfront costs. There is an initial rental cost of £1,016 but this is still an inexpensive option compared to paying the full price straight away!
No worries about depreciation
According to the AA, a new car is worth just 40% of its original value after three years! Depreciation is a real issue when it comes to vehicles, as soon as you leave the forecourt the value of your vehicle starts to drop but when leasing this is something you don’t need to worry about because the van isn’t yours to sell afterwards.
A new car every few years
When your lease is up, you have the luxury of handing back the van you’re currently driving and signing up for another new one. This means you can circulate your vans regularly and always enjoy the latest spec vehicle.
Builds up reputability
You probably haven’t considered how your van affects your reputability but in the world of business, appearances are everything and a potential customer will be more inclined to take on a sole trader or business if they look the part.
That means driving a good looking van – not a crumbling, dirty vehicle – and perhaps even a smart uniform (polo tops and work trousers are always a good choice). When leasing, you can still add decals or magnetic signs to the vehicle. Just be sure these can be removed without damaging the paint.
Maintenance costs could be covered
This all depends on the leasing company you opt to use but you can sometimes find deals that include maintenance and servicing. This is a great way of cutting costs and benefits your business. It offers peace of mind, not only that you can always get your van fixed but that your costs aren’t going to be affected.
When it comes to a business vehicle look into leasing – for many it’s an option that greatly benefits their business for all the reasons above and could improve yours too.