Do you need a van for your business? There are three ways you can acquire one; you can buy, rent or lease. Often, people only consider the first option, which is buying. They think it’s the smarter choice. When you pay for it, including taxes, it’s completely yours; you’re not simply issuing payments and coming out at the end of the transaction with nothing to your name. Unfortunately, this is the viewpoint of somebody who doesn’t see the big picture.
Renting, on the other hand, is usually short term – a day-to-day, week-to-week, or at most, month-to-month arrangement. If you go with this option for your business vehicle, it would not only be more expensive, it would also be very tedious.
The third option is van leasing. Savvy business owners know that this is the smart choice for them. You get to use a van for a number of years, depending on your contract. Be it a Mercedes-Benz or a Nissan, van leasing allows you to acquire the mark and model that you want, which is usually not a possibility if you’re actually buying. You do not have to settle for a small van because your budget limits you. You can get a big van or a medium van; leasing makes it possible for you to get just the vehicle that you want and need.
With leasing a van, you also do not have to worry about maintenance and repairs. You get a van that is in good condition, for starters. Should it need repairs, your leasing fee would usually cover them so you can get the van serviced for free.
The payment you make for the lease, besides being significantly lower than the amount you have to shell out for an actual purchase, is also tax deductible, so that works out really well for your business.
In the end, you also do not end up owning a used, older model vehicle that you have to sell in order to finance buying a new van. If, in fact, you prefer to own the van you’re using at the end of the lease period, it’s highly probable that the company you leased it from would have a provision for this condition as well.
Of course, not all van leasing companies are created equal. When shopping around for the right supplier, do your research well. Compare packages and deals. Consult forums and other businesses who are also leasing their vehicles. Do a reputation-check on your candidates. When looking at contracts, read the fine print. Seek out sections that talk about damage fees, provisions for extensions, renewals, the option to buy, etc.