5 Reasons to Get a New Van and Why it'll Save You Money!
The company van can be the centrepiece for many small businesses - a workhorse so heavily used that you almost forget it’s there - but run it into the ground without planning a replacement and you could suddenly drive yourself into all sorts of problems.
Don’t wait until the last minute – take a look at these reasons to get a new van and you’ll keep your business running efficiently and without the dark shroud of potential disaster on your shoulder!
#1 – Because you can lease one
Leasing in today’s financial world makes so much sense for businesses that it’s a wonder anyone even considers other options. Through leasing you get a regular payment that makes budgeting easy, you don’t have to worry about resale value or depreciation, and you can even tag on a maintenance package that means you are covered for pretty much anything.
Taking the grief and administration out of owning a van is worth tens, if not hundreds of pounds a month by itself – free up the time wasted by someone maintaining and administering a vehicle and let them get on with doing the job they were employed for!
Plus, there’s the huge advantage in not needing to stretch credit or eat up valuable capital. Read more about business contract hire here.
#2 – Because image is everything
We can lie to each other, quote maxims such as ‘never judge a book by its cover’ or simply hide our head in the sand and pretend, but the reality is that first impressions count – and so do second, third and fourth ones.
Turn up in a scrappy old van with an old company phone number on the side (or worse, a fax number!) and you will not fill your customers with confidence.
Show up in a shining new vehicle with up-to-date livery and they immediately see that you are doing well in your business – and consciously or not, seeing someone is doing well makes you feel you can trust them. A good image makes you look authoritative.
Whether you are a sole trader, or a limited company sending out trusted staff in the company van, the way that the vehicle looks is a major factor to how you are perceived.
#3 – Because the new technology in vans actually improves everything
Technology in vehicles is powering forward at an impressive pace. On one side there is all the work being done to lower the carbon footprint of a vehicle, from going full-electric to improving traditional fuel efficiency. One the other side there are exciting advances in artificial intelligence and self-driving which can improve the overall driving experience by so much that you are truly looking forward to a long van drive.
Systems such as lane assist can help you on a long motorway drive, parking sensors prevent unfortunate knocks that can hurt your insurance, and semi-autonomous driving during heavy traffic can take a physical strain away that you didn’t even realise was giving you a bad back!
Buying a new van does get you much of this, of course, but van leasing means in three years or so you can upgrade again and get the newest wave of technology without worrying about depreciation or resale value.
#4 – Because the running costs of a brand-new van are lower
Fuel consumption is better, tax is cheaper and there are even some areas in the UK now that won’t even let you in with your old van!
Better (lower) emissions mean your new van is more environmentally friendly and you don’t need to berate yourself over all the miles you are clocking up.
It’s easy to lose track of the small additional costs that happen until you update your van. Then you suddenly realise that the wheel balancing on your older one was causing the tyres to wear faster, that the older engine was drinking oil at a rapid rate and the fuel economy was a joke. Save all these little extras with a new van.
#5 – Because there’s more room
Improvements don’t just mean better braking systems or clever GPS. Improvements in vans means more cargo space and a better arranged layout. If you use your van daily to carry tools or supplies around, you’ll notice the improvements in a later model.
Or, if you have become a little squashed in your old van, now is a time to upgrade to something with a bit more oomph.
New vs used vs leased – van option FAQs
Should I get a new van?
If the five reasons above aren’t enough for you, the simple fact is that, if you are asking yourself the question, then you are already feeling the shortcomings in your current vehicle – this should be enough to tip you over the edge! You tell us – should you get a new van?
Is buying a new van tax deductible?
Tax offsetting your new van is possible, but if you buy it outright then you will only really get any tax offset advantages during its initial year – lease and those advantages go on year after year.
What are the leasing a van pros and cons?
Read our articles on leasing to get a good overview on the pros and cons of leasing a vehicle – you’ll be surprised at what a good deal leasing is!
How much can I claim back on a leased van?
Because a van is a true business expense (where a car is often used for personal use as much as it is business use), you can claim back a full 100% of VAT, and those monthly payments are heavily deductible as well. Speak to your accountant about your personal situation, but the answer should be very favourable.
Do vans cost more to insure?
With so many options available, there is no reason for van insurance to be more expensive that equivalent car options. Remember, however, you need the right class of insurance to drive legally for your business. Read our articles on insurance for more information – you can even find out about the savings possible through black box insurance!
What about new vans vs. used ones?
Often a used vehicle is just an exercise in false economy – where on face value it looks cheaper, but the reality is far from it. Depending on the seller, a used vehicle could be anything from a fantastic bargain that lasts for more than a decade, to a poorly maintained wreck with costly hidden faults.
With the offers available through leasing, suffering the used car market should no longer be necessary. It certainly doesn’t make your business look good to go from one old vehicle to another.
What’s the best way to buy a van for the self-employed?
Proving your credit strength to lease if you are self-employed can be hard – but the same is true if you are trying for a loan to get a new or used van. If your credit is good, then leasing is typically the best option, but if your credit is poor you may have to stretch whatever you have for a couple more years.
Read our guides to help improve your credit rating and get that brand-new van of your dreams in a year or two.
Where should I go to lease a van?
At Compare UK Quotes we work diligently behind the scenes to find the best deals in the UK. For van leasing, we recommend Complete Leasing, who had an expansive network of dealers across the country. Not only do Complete Leasing have some of the best van leasing deals available today, but a library of articles on their website that will help you understand the finer nuances of leasing.