What are the differences between leasing or buying a van?
When you buy a van, you are purchasing the vehicle outright. The purchase gives you complete ownership of the vehicle.
With van ownership, you are responsible for all the maintenance and the management of your vehicle. The van can be purchased with cash or on credit.
When a van is purchased by a business, it becomes a business asset in the form of a capital asset. This means that you can use the van for tax deductions, swaps, loans or transactions.
Leasing is where you enter into an agreement into the use of a van in return for a fixed fee. You can use the vehicle as if it is your own, but you do not receive the full ownership of the vehicle.
Businesses can use the lease as a business expense.
Facts to know
With leasing, you are restricted to a mileage limit. This can be a major pitfall with majority of van uses.
With leasing, you pay a fixed monthly cost. There is no initial cash outlay. For the duration of the hire, road tax is included. The leasing company takes the risk of vehicle depreciation. You have full maintenance leases if you ask. Most leases include breakdown cover, which is easier on savings.
Costwise, leasing spreads the payments over time.
Good vans to buy
- Peugot Partner
- Vauxhall Corsavan
- Nissan Primestar
- Renault Traffic