An overwhelming selection of commercial vans is now available on the UK market. However, choosing between commercial trucks is the sweetest part of the job, while deciding which financing option to choose is the hardest question for small and medium business owners. This is because small business owners often have to deal with rising overhead costs, rising raw material costs, etc. In a recession-phobic business world, the primary concern of small business owners comes down to the monetary part of acquiring company vehicles, either through purchase or through van rental companies.

Do you want to replace your old delivery van?

Are you willing to trade in your old truck and get a new vehicle for your business? If yes, then it is a great rebranding decision that you should follow. However, if you find yourself in a bind because you can’t decide which is better: buy or lease, here is a brief guide to help you make wise decisions.

Key Differences Between Leasing and Buying Vans

Shopping is what we usually do when we want to get consumer durables, daily groceries, luxury items, etc. We pay in cash or with credit or debit cards. Sometimes we also take out loans to buy property, like office vans. Buying means getting possession of something in exchange for money, while leasing essentially means using a property (a commercial van, for example) for a limited period and for an agreed price for the entire period of use (the ‘rent’ is usually paid periodically). However, renting a van also includes an additional option: you can buy the van at the end of the lease period by paying a lump sum.

Which is the better option, buy or lease?

Both purchase and lease are feasible financing options for acquiring commercial trucks to keep operations running. Both van financing options have their own sets of advantages. Below are the benefits of buying a van versus renting a van.

Benefits of buying a van

Buying a commercial van can be beneficial to your business in a number of ways. First of all, you can get a good bargain rate, as long as you buy the van for cash. You can trade in your van and save big on the new purchase. On top of everything, it doesn’t have a mileage limit which serves as an annoying reminder for people who lease commercial trucks. It becomes an asset to your business. Sell ​​it or exchange it for a new vehicle, you decide.

Benefits of renting a van

Renting a van, on the other hand, has myriad benefits that business owners can explore. Especially if you want to drive a new van every year, leasing is a good financing option. There are many companies that rebrand by replacing older vehicles as it gives their customers a good feeling about the company. Leasing drastically reduces maintenance and repair costs. Direct Lease and Lease Purchase, both options are available with major van leasing companies.

As a final point, buying means owning a moveable asset while leasing means pure cost advantages. Business owners should compare auto financing options based on their precise requirements and affordability.