Van leasing has recently taken precedence over any other method of acquiring vehicles for a business or for personal use.
When it comes to acquiring vans for their business though, most business managers are torn between the decision of van leasing and buying.
However, in today’s atmosphere, van leasing in the UK seems to be the better option considering the number of benefits it entails. Nevertheless, leasing a van also comes with its own set of cons. Therefore, the decision to lease vans for your business needs to be carefully considered based on both the pros and cons.
An important factor to consider while leasing a van is the rental service you choose. Whether you’re a large business or a small one, choosing an efficient automatic van rental London can greatly enhance your business’s efficiency.
Well, before you choose the most perfect automatic van rental service provider for yourself, let us tell you all about the pros and cons of van leasing.
The Pros of Van Leasing
Inexpensive
The biggest advantage of van leasing has to be it’s affordability.
For sole traders and small businesses, it can be hard to buy a van upfront. However, with affordable van leasing, we can avoid the major expense of buying a van and still obtain all the benefits of owning one.
Low to None Maintenance and Repair Costs
When you opt for van rental services, most of the maintenance and repair costs are borne by the service provider. Therefore, with van leasing you save a whole lot of money on maintenance, servicing, repairs and so on.
Flexibility
When it comes to leasing a van, you have all the flexibility in the world. You can get a van and try it out. If you don’t think it’s fit for your business, you can lease another one.
Furthermore, with van lease deals, you also get the latest models and upgrades without having to spend a lot of money. Unlike buying a van, in which case your vehicle becomes outdated after a while.
No Depreciation Problem
Here’s an obvious one. Since you don’t own the van, you can use it all you want without having to worry about depreciation.
The cost of depreciation is borne by the van rental service and you get the vans you need at a fraction of the actual cost.
No Credit Score Problem
When you’re trying to buy a van for your business, you either have to pay the entire money upfront or you need to look for vehicle financing or loans.
These lenders might assess your credit score and if it’s not great, they might provide the loan at outrageous interest rates. When it comes to van leasing, however, you don’t need to worry about that. Since the dealing happens on the basis of deposits, which is much lesser, you can easily get the vans.
Tax Deductible
Another brilliant benefit of van leasing for businesses is that it’s tax deductible. This means that when you lease a van for your business you can claim the VAT back.
Tax deductibility is one of the biggest pros of van lease deals, saving small businesses from the burden of tax and EMIs.
The Cons of Van Leasing
You Don’t Own It
Well some people like owning a van and the freedom that comes with having a vehicle of your own.
This is one major con of van leasing, as you have only a limited number of rights as to what you can do with the leased vans.
Frequent Deposits
While leasing a van for your business, you have to pay an initial deposit to the van rental service.
Thus, everytime you upgrade your agreement or need a different van, you need to pay a deposit which can get annoying and expensive at times.
Early Termination Fee
If you happen to terminate your leasing contract earlier than you’re supposed to, you might have to pay an early termination fee.
This is usually not the case in all van leasing deals, therefore we suggest you read the terms of the contract carefully before signing it.
Conclusion
From what we observed throughout the blog, it’s safe to say that van leasing is certainly a better option in comparison to buying one.
Moreover, when it comes to the cons, for the most part they are avoidable. Therefore, we suggest that you find an efficient manual or automatic van rental service provider and start your business easily.
