However, the financial benefits when it comes to leasing commercial vehicles are abundant, which is why more and more businesses are turning to leasing. It allows them to get their hands on a high spec, brand new van that they can use for work purposes and hand back every three years for something even better.
Leasing doesn’t require a large upfront cost - you can manage payments on a monthly basis and there are certain perks such as maintenance costs that could be potentially covered in your policy. Leasing services like LeaseVan can help when it comes to maintenance costs as well as offering advice on the best vehicles for the job and the warranties you can enjoy with them.
Leasing can furthermore be a tax deductible expense, allowing you to claim back elements of tax paid in certain situations, so it's definitely worth consulting your accountant to see what benefits you could enjoy.
An improvement in cash flow is another benefit of leasing a commercial vehicle, making the books look better when the accountant comes round to see what you’ve been up to. It could also improve your future credit options, as steadily paying off finance improves your business credit rating.
Whether you decide to buy or lease, always ensure you have the means to cover the costs involved. However, it’s a good idea to note that the payments required when it comes to van leasing can be more manageable than those when buying.
Van leasing requires a regular monthly payment that can be easily factored into your business plan, while buying could incur a random cost whenever something goes wrong – warranties only last so long on bought vehicles, but when leasing you can potentially work with the policy provider to extend these throughout your arrangement.
It’s important you do your research, find the best deal and ensure you’re getting the best value for your money. Always think carefully before signing on any dotted lines!
Jessica Foreman is a Durham University graduate specialising in business and lifestyle based writing. She has developed her skills on projects surrounding The British Broadcasting Company, and running a print and online based magazine whilst at university. She is currently looking towards starting her Masters in Mobile and Personal Communications as well as broadening her horizons through travelling.