Business leasing: should you buy or lease a van or car?

You need a new vehicle for your business, but should you buy it or lease it?

This handy guide will explain the advantages and disadvantages of buying and leasing to help you make the right decision when looking for a new set of wheels.

What’s the main difference between buying and leasing a van or car for business?

The number one difference is that if you buy it, you own it. You pay for it all, usually upfront, and then it’s yours to do as you please.

If you lease a vehicle, you’ll usually pay a fixed monthly fee based on such factors as milegae, length of lease, and initial rental, until you hand it back at the end of the contract.

What are the advantages of purchasing a van or car for business?

The main benefit is that once you’ve bought it you can forget about any ongoing payments. It’s yours to do with as you want – even sell it if you want.

What are the disadvantages of purchasing a van or car for business?

The biggest disadvantage for many is paying for a vehicle in full and possibly all upfront.

Because vans and cars generally depreciate in value from the moment you buy them, it could cost you more than leasing where you can just hand them back at the end of the contract and pick the latest model instead.

What are the advantages of leasing a van or car for business?

When you lease a van or car with the lcv group you choose the length of the lease, typically between two and four years, during which you can enjoy the following advantages:

A new van or car: When you lease a vehicle it arrives brand new and, at the end of the contract, you can upgrade to a newer model. That means you’ll be driving the latest model every few years without any hassle.

It doesn’t depreciate: As with the above point, you don’t need to worry about selling the van or car at the end of the contact, just hand it back and, if you still need a vehicle, you can pick a new model and get straight back on the road.

Claim back the tax: Is your business VAT registered? You should be able to claim your monthly payments back as a tax-deductible expense.

Fixed cost: You set the cost at the start of the contract and that way you know exactly how much you need to pay each month, assuming you don’t accrue any additional charges.

We’re here to help: When you buy a vehicle outright, you’re on your own afterwards. When you lease a vehicle, the team at the lcv group are just a quick phone call or email away if you need any advice. We can also help with our one-stop maintenance package, an additional service that makes maintaining your lease vehicle even easier.

What are the disadvantages of leasing a van or car for business?

As has been mentioned, if owning your own vehicle is really important to you, then buying it outright might be the best, if not always necessarily the most cost-effective, option.

You might incur extra costs for damage if you exceed the fair wear and tear conditions, but this would also apply if you owned the van outright – serious damage would still need to be repaired if it was owned or leased. You could also incur additional costs if you exceed the predetermined annual mileage that is agreed upon when you arrange the deal.

How can I find the perfect van or car to lease?

If leasing if the right choice for you and your business, we can answer any further questions you might have and help you find the ideal vehicle at a great price.

You can browse our range here or chat with one of the team on 01792 818538 who would be happy to help.