Many businesses need to make use of a van. Tradespeople use them to move tools and equipment from job to job, whilst producers rely on them to transport their goods from A to B.

For start-up businesses however, acquiring a van can sometimes prove to be a challenge. Vans can be a significant investment after all, and it’s important that you choose one that will be reliable whilst also suiting your budget. In this article we look at the different ways in which you can finance a van.

When it comes to acquiring a van for your business, you have three main options: buying, leasing or renting.

Buying a van

Buying a van has its advantages but it may not be an option for some businesses due to the expense involved; you’ll need a large amount of cash up front in order to purchase the vehicle, which smaller businesses can sometimes struggle to raise.

Another obvious drawback of buying a van is that it will depreciate in value as soon as you drive it away from the showroom. This means that when you no longer need the van and come to sell it, it will not be worth nearly as much as it was when you bought it.

Buying also means that you will have to pay maintenance and repair costs during the van’s lifetime, costs which can really add up if you’re unlucky enough to purchase a less than reliable vehicle.

Leasing a van

Leasing a van means signing a contract and agreeing to hire for a specific, usually long, period of time. You will pay regular instalments throughout the life of the contract which means that, unlike buying a van, you do not need to have a large sum of money immediately to hand.

Another advantage of leasing is that if you lease for the length of the manufacturer’s warranty, you’ll never have to pay for major repairs – which can be a real money saver should something go wrong with the vehicle. Maintenance costs are also often included in the package.

Flexible hire

A third option, and one offered by companies like Mayday Vehicle Rentals, is flexible long-term vehicle rental. This is an arrangement where you rent a van for a minimum period of time (28 days for example), but unlike under a lengthy fixed term contract, you have the flexibility to return or exchange the vehicle should your business needs change.

Such an arrangement provides the affordability of a long-term lease with the flexibility of a short-term rental. As with a lease, you should also be covered for repair costs and breakdown cover may also be included in the rates.

Whichever way you choose to acquire a new van for your business, we hope you find the right one for your business and that it serves you well.