Is Van Leasing a Good Idea for Businesses? Yes, especially for new businesses.
If you’re a business owner or run a business you’ll know that any asset you buy comes with a depreciation factor. This means that in time, year on year your asset will lose value, and tax deductibles get lower and lower, until, you can no longer add the asset to the yearly tax return.
At this point, your asset might be too old or with too much wear and tear for it to be sold at a good price. This means that your business will work with outdated equipment, this is especially more of a problem when talking of vehicles.
Vehicles by nature tend to depreciate a lot quicker than other assets. It’s said that by the time you drive your vehicle out of the dealer it has already depreciated at least 30%.
For a new or small business depreciation can come at a high price. Business image is also important, nobody wants to drive around with an old, battered van, what would people think of the business?!
For a new or small business depreciation can come at a high price. Business image is also important, nobody wants to drive around with an old, battered van, what would people think of the business?!
Van leasing offer businesses the chance to always have brand new and updated vehicles in their fleet. These vehicles will remain tax-deductible throughout the full time of the lease avoiding the loss of money from depreciation and age.
Van leasing also offers the opportunity of owning the vehicle at the end of the term if you choose not to lease again for a brand new vehicle.
The option of owning the vehicle comes in the form of a final payment called Balloon Payment. The amount of the Balloon Payment will depend on your finance term.
There are several options for when leasing a van depending on your requirements, circumstances and business type. For example some finance lease work better for self-employed, small and medium size business or if you find yourself with bad credit.
If you want to know more about the types of finance lease or financing with bad credit check out these articles:
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Crusader Vans is a trading style of Crusader Vehicles Ltd. We are a credit broker and not a lender and will introduce you to a set panel of lenders. We may receive a commission or other benefits from our finance providers should you decide to enter into an agreement with them as a result of our introduction or, from another credit broker to whom we refer you, should we be unable to arrange funding for you. This is reflected in the monthly lease rate that you pay for your vehicle. We will receive financial remuneration which may be variable or pre-set dependent on the product and the volume that we place with that organisation. The amount of commission received may vary depending on the funder selected.
We are authorised and regulated by the Financial Conduct Authority. Registered No : 631262 We are an Appointed Representative of Autoprotect (MBI) Limited which is authorised and regulated by the Finacial Conduct Authority for insurance mediation purposes (FRN 312143).
Registered in England & Wales with company number : 06203641 | Data Protection No : Z2007710 | VAT No : 929 9924 56
Registered Office : Crusader House, High Street, Buxted, East Sussex, TN22 4LA
Disclaimer: All vehicle images and descriptions are for illustration and reference purposes only and it is your responsibility to check the vehicle and specification is fit for your purpose. All vehicle leases are subject to status and credit approval and subject to change at any time. Calls are recorded for training and monitoring purposes. Errors and Omissions Excepted (E&OE.)
