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Tuesday, April 6, 2021

Should You Lease Or Purchase A Van?

In this current day and age, it is exceedingly important that any business is as economical as possible with their money. We need to cut costs as much as we can in order to survive, yet at the same time, we need to ensure that we do not suffer from a lack of quality. Leasing a van rather than buying one is an extremely attractive alternative for many businesses as it possesses monetary advantages as well as a whole host of other benefits.

With regards to cutting costs and saving money the option to lease a van is a helpful one. You do not have to fork out a lot of money outright, as you would if you were buying a van. In fact, even the deposits for leasing are generally quite low. In addition to this, if you search around you will be able to find low monthly payment schemes, and so you will ensure that you keep your outgoings at a minimum.

Furthermore, you can lease a van for a period of time which suits you; anything from three months to two years or more. Therefore if you are unsure about the prospect, it may be best to start off with a lesser contract length. This flexibility and lack of lengthy commitment are one of the main reasons people tend to lease rather than buy. Nevertheless, some companies are reluctant to offer very short lease periods, so you will have to search around to find one that will. 

Short lease periods also means that you can constantly lease out a different van and keep up to date with the latest styles and trends. In fact, you will be able to get your hands on a vehicle that you may not necessarily have been able to afford to buy yourself. This gives off a great impression to your customers and potential clients. Find out if you can make any changes before you do so, though, as contracts differ. For example, you may want to calculate wheel size and purchase a new set of tires, but make sure the contract allows for this. On the other hand, if you buy a van outright then after a while you may be faced with a vehicle that no longer satisfies your needs, and when you got to sell it you may be met with the issue and disappointment of a major depreciation in value.

 

Points to consider before agreeing to a van lease

Van leasing is becoming an extremely attractive alternative for a lot of businesses. Many people prefer to opt for this method rather than buy a van outright because they benefit from vehicle choice, frequent upgrades, and low payments. However, as is the case with any purchase or commitment, there are several points you need to consider before you sign the dotted line and agree to a van lease.

The first thing you need to think about is how long your lease agreement should run for. This is important because it will have a direct impact on your monthly payments, as generally the longer the lease the lower the payments. However, if you are leasing a vehicle for the first time then it may be recommendable that you go for a shorter lease in order to test the water. Furthermore, you do not want to go for an agreement which is too long as after a few years you may decide you want a more up to date and modern van. Therefore it is vital to try and strike a balance somewhere in the middle.

Hand in hand with the lease length comes the cost of your monthly payments, which is obviously something you will need to greatly consider. You need to sit down and devise a strict budget of what you can truly afford. Be realistic, you may be able to afford the payments for a certain van now, but will you be able to two or three years down the line? You also need to think about the initial deposit you will be required to put down. Remember to factor this into your budget. 

In addition to this, you also need to contemplate the mileage allowance you will be given. Mileage allowances vary greatly however if you are leasing a van for business use then it is likely you will probably be driving a lot. Sit down and estimate how much mileage allowance you think you will need, then add a decent amount on top of this. Predicting mileage is rather difficult to do and thus it is better to have too much mileage allowance rather than not enough.

A final point to consider is the actual company you are going to lease the van from. Make sure you take a spare five minutes to search them online in order to ensure that they have a good reputation. Read reviews from previous customers to determine whether they have been happy with the service they received or not.

Edel Alonhttp://edelalon.com
Edel-Ryan Alon is a starving musician, failed artist, connoisseur of fine foods, aspiring entrepreneur, husband, father of two, geek by day, cook by night, and an all around great guy.

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