Buying a van is a big investment and depending on your requirements, may be one you don’t need to make. For smaller businesses without ready access to capital, a van can be a big up-front cost to cover. To help you decide whether to hire or buy, here’s a few questions you need to ask yourself.
How much monthly cash do you have?
Do you have enough to pay monthly for a van you’ve bought on finance, or alternatively do you have enough initial capital to buy a van outright? If not, hiring may be a good option – companies like Northgate Vehicle hire offer long-term hire vans which have no fixed term or complex contracts.
You’ll also need to consider the costs that come with vehicle ownership, such as:
- Breakdowns
- MOT/Servicing
- Repairs/parts
- Road fund licence
- Mileage penalties
- Depreciation in value.
As well as that, leasing a van carries hidden charges and interest rates and generally requires a lump sum at the end of the lease period. They also usually come with a mileage limit that can be hard to stick to if your business has to cover lots of miles.
Can you afford to deal with ownership issues?
Downtime is a given when you own a vehicle. There will be periods where your vehicle becomes inoperable and needs to be repaired, which means lost income and a loss of customers if you fail to deliver your service.
With a long term rental, you’ll be able to get speedy breakdown cover and frequent maintenance with no extra cost.
Do you want flexibility?
When a business purchases with cash or finance, they are left with a significant outlay in capital or enter long-term contractual commitments with hefty cancellation penalties. Long term hire is not tied in to a contract, meaning you can hire a van as and when you need it and for as long as it is necessary.
What do you need from a van?
This may seem like an odd question, but you need to consider if you regularly need a van or if you only need one for a few jobs per year. If it’s the latter, hiring a van for a limited period can save you lots of money.
If you do need a van on a more permanent basis, a long term hire can still save you money on equipment and additions. Rather than purchase extra modifications or upgrades, you can hire a vehicle that comes with equipment such as ladder racks, tow bars, slam locks, glass racks and security gates and can be branded in your own livery.
Hundreds of businesses use long term hire for their fleet solutions. Saving costs on up-front investment, running costs and breakdown cover, they’re a fantastic option for anyone from a single-person business up to companies needing entire fleets.