To lease or buy: An insight into renting commercial transit van

When you decide that you require a van for your business, you have to go through a lengthy decision-making process. The top concern among these decisions is how you pay for it. With competition rising due to new companies emerging every few years, various idealists have come up with a versatile option of hiring commercial vehicles instead of buying it. Now you can rent a vehicle on a contract basis or lease it.

Why should you lease rather than buy?

The downside of buying your commercial vehicle is that you owe the sole responsibility of your vehicle which can be hectic while you are trying to run a business plus there is an added disadvantage of high repair costs due to small negligence. For users who utilize the vans for long roads, the cost of repairs and maintenance can be pretty high and adversely affects the business.

This is the prime reason many consumers now choose to hire or lease the van instead of owning it. In general, a transit van hire contract can usually extend from 24 to 60 months depending on how long you mean to use the van and the distance you cover during the said duration.

Fixed Monthly cost:
The key benefit of hiring vehicles rather than straight up buying the thing is the benefit of fixed monthly cost which makes budgeting easy. This removes the cost of buying a vehicle from your company’s book and helps you invest more in your business. A small upfront payment covers up your renting fees. The costs of contract hire payments are allowed against the tax, so one more plus point to lease that van for your business whether new or old.

No worries about fleet management:
Truck and trailer rental usually take care of the repair and regular maintenance cost of the vehicle, so you need not worry about the vehicle breaking down and affecting your pocket. Some agencies also provide mechanics for emergencies 24x7, if in case your vehicle breaks down. You don’t have to bear the cost of depreciation of the van.

No worries about end life of vehicle:
The plus side of renting a vehicle is that you don’t have to worry about what to do with the vehicle when its condition drops down. The company leasing the vehicle will take care of that, and you might choose to opt for a new vehicle or switch to another scheme.

The method of payment you choose will ultimately affect the size, usage, and plans of your business. Buying might seem a onetime investment, but the hidden costs of repairs will negatively impact your financial plans.