What’s the best van for your business?
How Logbook Loans can help you to buy the best van…
If you are running your own small business you may well need a van to help you. Whether you are about to get your first van or replace your old faithful one, there are several things that you need to consider to ensure that you are making the best decision.
When you bear in mind that your van is probably going to be one of the most important assets for your business, it’s important to think it through carefully to make sure that you get the best van for your needs.
Let’s take a look at four key things to consider:
First and foremost, set yourself a budget. Whether you are planning to buy or lease (see below), and however you are then going to finance the van you do need to work within a budget. Your van is likely to be one of the largest investments you make for your business so don’t get carried away and end up committing to more money than you can really afford.
- Buy or lease
Once you have decided to get a van you need to decide whether to buy or lease. Leasing can appear to be an attractive option as you can make monthly payments and maintenance is often included. However, you do not own the van so are not making any longer term investment in an asset for your business.
So another option would be to take a loan to purchase the van outright and then pay that loan back each month. At the end of the loan term you have not only made all the payments but also own the van outright. Why not take a look at our range of logbook loans which could enable you to purchase the van that your business needs by using your current family car as security to obtain the loan?
Whichever way you decide to procure your van, the good news is that you could benefit from tax relief. If you buy the van outright, you can claim the cost as expenses against your income tax bill: the exact way you do this will depend on how you pay tax.
If you lease a van you can get tax relief on the monthly payments you make during the lease arrangement. You may also be able to claim up to 100% VAT back on the monthly payments, if your business is registered for VAT.
- New or used
Another key consideration is whether to get a new or second-hand van. It is possible to get a good deal on a new van if you do your research carefully. You have the benefit of no previous history or mileage, and it should serve you well for many years to come. Also there may well be a greater range of finance options for a new van rather than a used one.
However, bear in mind that because vans are built to last you should also be able to get many more years out of a used van, at a significantly lower price. A second-hand van is therefore often a good choice for a small business. Particularly if it has a low mileage it should be capable of all you need it to do, including extensive motorway driving. But do make sure that you arrange a thorough inspection of any used van before making a final decision whether purchase.
Last but not least, you need to make a careful decision on what size of van you need. For most small businesses, a small or medium van will suffice. But if your business regularly involves moving heavy items, such as furniture or machinery, then you’ll need a larger van. You need to be aware of payload capacity ie how much weight your van can carry in terms of cargo and passengers. Also bear in mind whether you will need any towing capacity.
Once you have the above factors clear in your mind you can get onto the fun part – choosing your van! Make sure you do your research and stick carefully to what you need rather than getting carried away. Below is a list of some of the most popular vans around at the moment to get you started:
- Ford Transit Connect – consistently rated as one of the best all-round small vans on the market.
- Fiat Doblo Cargo – offers excellent capacity for its size and an impressive mpg.
- Volkswagen Caddy – a stylish option with a contemporary interior.
- Volkswagen Transporter T6 – a very popular van which recently won Autoexpress Van of the Year.
- Ford Transit Custom – the affordable and best-selling commercial vehicle in the UK.
- Mercedes-Benz Vito – high quality van, excellent safety features and enhanced driving experience.
- Ford Transit – reliable engine and excellent comfort on long drives.
- Mercedes-Benz Sprinter – premium feel, 4×4 transmission and high driving position.
- Fiat Ducato – impressive payload and extremely fuel efficient.
Good luck with choosing your new van! We hope that you find just the right one for your business and that it gives you many years of faithful service.
If you need any additional funding to finance your van then Logbook Loans may be able to help. Check out our range of logbook loans which could make it possible for you to get just the van that you want!