Small business owners may want to buy a van, but with a new or small business, this can seem like a daunting prospect. It is difficult to know whether buying or leasing a van might be a good choice. There are a few things to consider before deciding to buy or lease a van. Let’s look at the differences and weigh the benefits of each.
What Exactly is The Difference Between Buying or Leasing?
If you buy a van, that means it is officially your property. You can do this through car loans, or finance agreements. You can even do this by paying full in cash. The van is now yours for life! If you pay in cash, you will own the van straightaway, whereas loans will take a bit of time before you can fully claim ownership.
The biggest difference with leasing a van is that you will not own the van. You will be able to use the van at any time and treat it like your own, but van leasing implies that you are paying to use this van each month, rather than owning it. This is good to test out vans to see which one might be a good fit for your needs.
The Benefits of Owning Your Van
One of the most obvious benefits is that you own the van completely, and it is yours to do with as you wish. You can sell it for money or add customizations however you’d like. With certain customizations, you might even be able to turn around and sell the van for more money than you’ve paid. If paying cash, you may even be able to make a better deal for the van. With owning a van, there is a lot more freedom.
The Benefits of Leasing A Van
Leasing a van has just as many valuable benefits as owning a van. You can arrange short leasing agreements for starters, which means you have the choice of changing vans when you feel it’s necessary. Because you don’t own the van, you’ll never have to think about any depreciation, and overall, you will have lower maintenance bills to deal with. Business owners tend to appreciate the fixed monthly payments, as this helps small businesses deal with budgeting and finances.
Both buying and leasing a van have their own benefits. Both are excellent choices for a business to help further grow.