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As a business you might assume that buying a van outright is the best option as there is a general perception that it gives you more control. However, van ownership is not without its challenges, which can result in additional costs and potentially wasted downtime for your business. In this guide, we’ll be exploring whether pursuing vans for rental could be a better option for your needs than buying.
Whilst individuals renting a van for personal use such as when moving house, may only need to hire it for a short term, those looking to rent for business reasons might need it for a longer period of time. The great thing about renting with Croxdale Group is that you have the option of flexi van hire for your business. This means that you have full flexibility over your rental, whether you need a van temporarily to continue working whilst your normal vehicle is off the road, or you need a van for an extended amount of time to suit your business requirements.
Another way that renting a van is different for businesses is that you can take advantage of tax relief, also known as blocked VAT. Blocked VAT, allows businesses who lease a van to claim back 100% of the VAT they are charged when renting the vehicle. This can be a significant saving and a benefit for businesses interested in renting a van.
If you’re unsure about whether to buy or rent a van for your business, there are some factors you should consider that could help to lead you to the right decision.
On the surface, buying a van is a sensible investment, but before you commit to this optionyou should think about the depreciation, especially if you’re considering a brand new vehicle. New vehicles reportedly lose up to 40% of their value by the end of their first year on the road. As a result, your business could end up losing capital in comparison to renting a van. If you rent a vehicle you don’t have to worry about losing any money over time, you simply hand the keys back once your agreed term is up.
Buying a van outright is not a small cost and requires a substantial upfront investment. This means your funds are then tied up in the van and you might not be able to use it for other important aspects of running and growing your business. Additionally, if you’repurchasing a second-hand van, there is the risk that it is not as advertised, and something could go wrong that needs repairs – making the upfront investment even higher. Renting a van does not demand as much of a large cost all at once and there’s less risk involved.
Van rental can mean newer vehicles are more affordable for your business. Older vans despite often being cheaper, can also mean more maintenance to keep them in good working order. In addition, they probably won’t be as fuel efficient as a newer vehicle and when you factor in maintenance and fuel efficiency, you could find that renting a newer van will help you make savings.
Buying older vehicles might be a reasonable financial option, but they will likely look their age, even if they have been maintained over time. If your business involves regular interactions with customers, they might not get the best impression from a van that is old and tired looking in comparison to one that is newer and in great condition. This is especially the case if you’re going to have branding elements on the van that lets everyone know who you are as a business, you want to leave the right impression.
You can learn more about the benefits and how to hire a van for your business in our other recent guide ‘Hiring a van for business purposes’.
Overall, if you’re wondering whether you should rent a van for your business, it ultimately depends on what is right for your specific requirements. However, as we have seen there are several compelling reasons and ways hiring a van can benefit your business. If you’re looking to rent a van in Durham, the team at Croxdale Group can help. We offer van rental options to suit any business needs. Book a rental vehicle online today or you can contact us if you have any questions or queries.