The number of small businesses is steadily increasing, many of these companies are looking to lease vehicles. When a business first starts out, it be difficult if you are trying to obtain a vehicle with little cash flow. So looking at the option of leasing a van is always a good place to start – for great deals look at Leasing4Business. Here are some of our top tips for choosing the right vehicle for your company:
Size and purpose of the van
A common mistake made by companies is that they choose a van that is too small for the needs of their business, they think that by opting for a smaller, cheaper option, they will save money in the future. This is of course in correct, if you need to double up on trips for deliveries you will not save money in the long run. You really do need to decide what van size you need, so sit down and think about everything that it might be used for. Visit www.leasing4business.co.uk for all the help and advice you need.
Choosing the right lease
It is important that you know all of the lease deals available to you.
Contract hire – The van will still be owned by the company, they are hired to you for a set period of time at a fixed monthly rate. This is great for any company that wants to wait until they have a better line of credit or if they have improved their cash flow.
Lease purchase – This is the most popular lease method for VAT registered businesses to get a van. You can get a good monthly rate that will be calculated based on the proposed annual mileage.
Hire purchase – This type of agreement allows a business to have a degree of flexibility. The flexibility comes because the monthly repayments are calculated based on the initial deposit, the van sale price and the contract duration.
Finance lease – A great option for any small business, this is a VAT way to lease a van for registered companies. The monthly repayments for this type of lease will be based on the vehicle price, period of the lease, and the value of the van once the lease has been completed.
Adding a logo and signage to your leased van
Having your companies contact details and logo on the van is essential for any business. Before you take out a lease be sure to read the terms of the agreement, you need to check in the small print to see if you are permitted to add anything to the van.