BUYING A VAN FOR YOUR BUSINESS AND FINANCING IT

When it comes to choosing your vehicle you will rely heavily on your local dealer. Be sure to take a test drive. Many dealers are able to arrange 24-hour trials, too, so that you can be sure that the style of van you are considering really does meet the needs of the business. You will want to check out the servicing and maintenance support your dealer can provide, but above all you will have to decide upon the most cost-effective way of financing the vehicle.

Again, your dealer will be glad to help. There might even be a dedicated business specialist who would be glad to weigh up the options with you. At the end of the day, of course, it's your business - and your decision.

Your dealer will probably be working with one of the many finance and leasing companies who operate throughout the UK. You can arrange finance through the dealership, or independently if you prefer. The first step is to decide whether you want to buy or lease the van in question. A good finance company will help you find the best solution. If the deal works out well for you, they'll enjoy repeat business, so it's in their interests to look after your business.



The majority of vans and light commercial vehicles on the roads have been purchased rather than leased - but just because you've always owned your fleet doesn't mean that you can't consider alternatives at any time. The benefit of ownership, of course, is that the vehicles look good as assets on your balance sheet and you have the freedom to sell at any time. The downside is the residual risk, not least depreciation when you come to sell and the manpower it can take to administer and maintain the vans you operate.



Leasing, on the other hand, allows you the use of the vehicles without the responsibilities of ownership - and without tying up existing lines of credit. Typically, van lea...