Which is better – buying or leasing vans for business use?

Posted by on June 2, 2012 | No Comments

Van leasing is commonly used by businesses these days, as it is often the most cost-efficient and affordable option. However, if your company has the money to buy its vans outright, you may be thinking – why should I consider van leasing?

Van leasing is not like renting a house rather than buying it. Many people still think of it this way, as a waste of money. There are, in actual fact, many more financial benefits to van leasing than there are for buying your own vans.

First and foremost, you should know that the payments and deposits you make to your van leasing UK company are 100 per cent tax deductible. This is the first financial advantage of van leasing, as it proves to be the most tax efficient way to run a fleet of business vehicles.

If you choose to lease vans rather than to buy them, there is another benefit you can enjoy. This is the problem with depreciation in the value of vehicles that many van-owning companies experiencing when trying to sell vehicles they bought just a few years before. The value drops significantly, leaving the business out of pocket. However, if you choose van leasing, you may have the option to replace your vehicles with brand new ones at the end of a lease contract.

Big discounts are also offered by some van leasing UK companies when businesses sign up for lease contracts, especially longer term ones. However, this also depends on the vehicles you choose.

The last benefit of van leasing is that it can help your business to improve its cash flow and free up capital. Companies that have the money to afford to purchase vans may find that it is better spent elsewhere in the business, and by paying the minimum deposit many van lease firms ask for, this cash can be freed up.

Alison French is a widely respected writer who has been writing for 5 over years often writes on Vans London Online and a wide range of other subjects.

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