If you are a small business owner with a product or service that requires you to move around a lot then you have no doubt been considering buying a van, or even a fleet of them if you have a larger team. You may even already have one and it may be time to consider upgrading or replacing it. Before you do anything else, read on!
There are benefits to owning a van or fleet outright, but do they outweigh the downsides? Have you thought about how hiring out a van or fleet may actually be more beneficial for you or your business? We take a look at what those benefits are in this article to help you make the best decision for your business and your bottom line.
The economics of it
Buying a vehicle or fleet of vans will look good on your balance sheet. You will even get a tax break from the government. On the flip side, you have just shelled out a lot of money that you will never get back as depreciation has kicked in the moment you drive off the forecourt.
You also need to take into account all the costs that are associated with managing vehicles: road tax, insurance, breakdown cover, MOTs, and servicing. Not to mention having spare cash to deal with any problems, repairs, and new tyres and batteries every so often. If you drive into urban centres, such as London, you will also have to fork out for the Ultra-Low Emission Zone charge and the Congestion Charge. Before you know it, things have added up to a good chunk of money.
As an added financial incentive, if you are leasing a vehicle exclusively for business use then you are eligible to claim your VAT back, and your lease costs can be tax deductible.
All that cost associated with vehicle maintenance can be stripped out when hiring. That responsibility is passed on to the hiring company and it is in their best interests to have reliable and up-to-date vehicles for their clients. It’s also good to know that you won’t have to worry about dead batteries or breakdowns when you need to head off to see a customer. Many hire companies, us included, will also have breakdown options to reduce the time you spend looking for a way to get to where you need to go should the worst happen.
As flexible as you are
Van hire gives you the ultimate flexibility when you need it. Want a bigger van for a larger job? Need to downsize during quieter periods or scale up quickly after winning a new contract? It’s not only possible, it’s easy to do. It also gives you the flexibility of having newer and more efficient vehicles than you would if you had to sell or trade yours in and find an upgrade; not to mention the sunk costs.
If your business needs a van then talk to our Pace Van Hire team before you do anything else. We will help you explore the various options and find the best one for you and your business. Start by giving us a call on 020 7277 9853 and we’ll take it from there.