Leasing a fridge van to help you grow your business can be an exciting time. But it’s vital that business owners pay close attention to the fine print so they don’t end up getting a raw deal.
There are many mistakes you could make during the leasing process, from selecting the wrong van to agreeing to terms without understanding the long-term implications. In this guide, we’re looking at some of the most common mistakes made when leasing a fridge van and how you can avoid them.
Mistake #1: Choosing the wrong vehicle
One of the perks of choosing to lease your vehicle instead of purchase is that you’ll be able to have a much wider range of choice. This can be a blessing or a curse, depending on how you look at it.
With so much choice available, it’s not uncommon for business owners to focus on the wrong things and ultimately make the wrong selection. This could mean choosing an electric vehicle that doesn’t offer sufficient range. Or it could mean selecting a vehicle that is too large for your needs, leading to higher than necessary operational costs.
The key to making the right choice when it comes to leasing a vehicle is to weigh up the current needs of your business with your plans for growth. This will help you to make a decision that will not only suit your needs now, but at the end of your lease, too.
Mistake #2: Not checking your tax position
There are tax benefits available for leasing a vehicle, but you need to confirm which ones you are eligible for. It’s always worth checking with your tax advisor to make sure you’re making a decision that will maximise your tax savings.
Another mistake that often feeds into this is to make assumptions about your tax savings and then making financial decisions based on how you think things will work out. If it transpires that you aren’t eligible for the type of savings you were expecting, this can lead to lease payments that are unaffordable.
Mistake #3: Not checking the fine print
There are some situations in life where you can probably skim the fine print without too much worry, but leasing a vehicle isn’t one of them. You could be tied into a contract for up to 5 years, so it’s vital that you know exactly what you are getting into.
If there is anything in the fine print that seems unclear or you don’t understand, don’t be afraid to ask questions. It doesn’t make you look inexperienced to ask questions about the fine print. It makes you look responsible and like you are considering the implications of what you are signing up for.
Mistake #4: Not keeping the warranty intact
If you are leasing a new vehicle, there is a chance you could have a vehicle warranty in place for the duration of your agreement. This is great news as it means that any manufacturer faults will be covered by your warranty. The mistake comes when companies fail to jump through the hoops that allow them to keep this warranty intact.
This typically means having your vehicle serviced by a manufacturer-approved garage at least every 12 months. If you miss one, the warranty could be voided, and you’ll no longer be covered if something is amiss with the vehicle. The exception would be for recalls that are requested by the vehicle manufacturer.
Mistake #5: Not test driving the vehicle
If a test drive is available, it would be foolish not to take up this offer. A test drive is about more than just kicking the tyres and making sure everything works as expected. It can be an operational test run that allows you to determine if the vehicle meets your needs.
Without this essential step, you could end up taking on a vehicle that is too tall or too short for your loading bay. You might struggle to park it outside your business. Or your team might unanimously agree that they hate the driving position.
By taking the vehicle for a spin before you sign on the dotted line, you can avoid getting stuck with a vehicle that is full of bugbears for the duration of your contract.
Mistake #6: Not maximising your deposit
Maximising the deposit might require a larger upfront payment, but it means that your monthly repayments will be lower for the duration of your agreement. This means you’ll be paying less interest on your financing.
This could allow you to shorten the lease period which can make your agreement more flexible to your needs. Getting locked into a longer lease period with lower monthly repayments might be suitable if you are confident you have the vehicle you need.
Many business owners prefer the flexibility of a shorter lease period, as this gives them the opportunity to switch their vehicle if it isn’t working for them.
Mistake #7: Making a decision under pressure
The final mistake you should avoid making is to make a final decision under pressure. Don’t be afraid to walk away and take time to think about your decision. A good salesperson will want you to make the right decision for your business, not a fast decision.
Walking away and sleeping on the decision is often wise as it will allow you to move away from decisions driven by enthusiasm or excitement. Leasing a vehicle for your business can be very fun, and it could signal a period of growth, but it’s also a big decision. You’ll thank yourself in the long-term if you make sure your decision comes from a place of consideration.
Final thoughts on vehicle hire mistakes
While these mistakes might be all-too-common, you’re now equipped with the knowledge to avoid them entirely. Take your time while choosing the vehicle and leasing product for your needs to ensure it is a sound long-term investment in your future. Don’t be afraid to take a pause to consider what you need, or to walk away if a vehicle doesn’t meet all of your requirements.
