Mon – Fri: 8am – 5pm | Sat – Sun: By Appointment

fridge freezer vans

Why Van Leasing Can Be Better Than Purchasing For Businesses

Get in touch

Contact GRV4FridgeVans now to find out more about our range of fridge and freezer vans.

Why Van Leasing Can Be Better Than Purchasing For Businesses

As a business owner, it’s your responsibility to look for ways to reduce your overheads while boosting profits. This will enable you to operate a more profitable business, which will pave the way for further growth.

When it comes to vehicles such as specialist refrigerated vans, the choice between purchasing or leasing can be difficult to navigate. Many company owners wrongly assume that such specialist vehicles can only be purchased, so they will take a risk with an unreliable used vehicle. The reality is that you could enjoy a new or used car on a leasing deal, which can be a smart financial choice for your business.

Here are just some of the reasons that you should consider van leasing instead of purchasing vehicles for your business.

Reduce your liability

Reduce your liability

While it’s true that leasing a vehicle means that you don’t own it, and therefore it isn’t an asset for your business. However, this could also be seen as an advantage too, as it means that you also don’t own the liability.

If you own the vehicle, you are responsible for upkeep and maintenance. If something goes wrong, you either need to pay to fix it or replace it. If you’re lucky, it might still be under warranty, but you’ll still be responsible for arranging these repairs.

With a lease vehicle, you’ll also be covered in the event something goes wrong. Your lease will typically cover annual maintenance and servicing. And if something goes wrong with the vehicle and you’re unable to drive it, your lease should also include the cost of a replacement vehicle.

Spread the cost

With a lease, you don’t have to have a lump sum investment upfront. Business finances are often delicate, with little room for large purchases, particularly for startups. To help avoid sinking your business finances into a vehicle purchase, you can spread the cost with leasing.

You’ll have to pay a deposit upfront and then a monthly leasing fee. The longer the lease and the more you pay upfront, the less you’ll pay every month. Likewise, if you want the flexibility of a shorter lease, you can expect to pay a higher fee every month.

With predictable monthly payments, business finances will be much easier to manage. You’ll always know what you need to cover your van leasing cost every month.

Enjoy tax savings

Enjoy tax savings

With a vehicle purchase, only a portion of this will be permissible as a tax write off. But when it comes to vehicle leasing, you can often write off the full value of the monthly payment. This can add up to significant savings for your business which will enable you to focus on growth instead of your looming tax bill.

If you’re not sure how to maximise the tax benefits of your car lease payments, make sure you speak to an accountant or tax specialist in advance so you are confident the full payment will be tax deductible.

Increased flexibility

When it comes to choosing a vehicle, you’ll have greater flexibility by opting for a lease over a purchase. When you are purchasing a vehicle, you’ll often be constrained by your budget. This could mean that you end up compromising on essentials that hold your business back in the future.

By choosing a lease vehicle, you can opt for exactly what you need to help your business grow. The upfront and ongoing costs will be much more manageable, so you won’t have to make any sacrifices when it comes to things like size, efficiency or features.

Access an economical vehicle

Access an economical vehicle

If you’re looking for a used vehicle, you might be stuck looking at older vehicles that are much less efficient. By opting for a lease, you can access newer vehicles that could include full electric or hybrid models. These vehicles will enable you to future-proof your business while also helping to keep your costs down.

If you plan to drive the vehicle in the centre of London, you can also avoid the ULEZ charges by opting for a cost-effective lease vehicle. And your ongoing costs will be lower as you’ll be able to charge your vehicle at your business premises.

Final thoughts on van leasing for business over purchasing

Before making such a big financial decision, it’s vital to look at the long-term and short-term costs of each option. This will help you to determine if leasing or purchasing a vehicle could be right for you. 

You should also explore all of the government grants available to your business, as this could help you to access financing and funding to help you grow your business with an economical and environmentally-friendly electric vehicle.

And finally, make sure you shop around and check the fine print of deals that seem too good to be true. You might find that initial discounts don’t lead to savings once additional charges are added up. 

Related News

How to Lease a Van for Your Business Through a New Limited Company

How to Lease a Van for Your Business Through a New Limited Company

Van leasing can pave the way for incredible company growth without the need for a significant upfront investment. For those who have only recently registered their Limited Company, it might...

Read more
Ford eTransit battery upgrade

Ford eTransit Gets Bigger Battery and Longer Driving Range

Perhaps one of the biggest objections to driving an electric vehicle – particularly a van – is the driving range. Many drivers are accustomed to the convenience of being able...

Read more
EV Fire Risk: Are Electric Vehicles More Likely to Catch Fire?

EV Fire Risk: Are Electric Vehicles More Likely to Catch Fire than Petrol and Diesel Vehicles?

When electric vehicles catch on fire, they will often make it onto the front pages of the news. Warnings from firefighters earlier this year highlighted an issue that many opponents...

Read more