Congratulations, you’ve started a successful business that is really taking off! The speed at which your business is growing is amazing. Right now, you’re looking to keep that energy going by investing in your company further.
Going back and forth about getting a van for your employees and your business has been on your mind a lot lately. Leasing a van for your business can have its ups and downs. Just like any pressing financial decision, you need to seriously weigh the pros and cons before you make your final call.
Why Now?
No matter where you are in your business journey, if you’re startup business was once a vision and now a success, or if you’ve been running your own company for years, leasing a van can be beneficial for your company. You can use it for company transportation, shipping, etc. There are so many reasons why you may be looking into getting a van, but is it best for your business?
Breaking down the pros and cons can be really simple. However, really understanding what benefits your business can gain from having the van in the first place is going to be the most important factor. Before you begin to weigh your options, you should first completely understand WHY your business needs a van, as well as what it could bring you in the long run. Once you understand your reasons behind finding a van to lease or buy, you’ll be on your way to comparing the financial benefits and the burdens. Let’s break down the detailed pros and cons of leasing a van!
Pros
There are many reasonably pros to van leasing for your business. Here’s a detailed look at the various reasons why leasing a van will be a good thing for you long term.
- Payments. Leasing a vehicle will typically have a lower monthly payment than buying the van outright. These lower monthly payments won’t change during the duration of your lease. You will also save on a hefty down-payment as leasing charges are spread out evenly over the contractual length.
- Taxes. When it comes to leasing a van, depending upon the agreement, you may be able to claim up to 100% of the costs of that lease for your business. The monthly payments can be claimed as a tax-deductible expense. Do the research beforehand to make sure your van lease and your business can qualify!
- Maintenance. You will save money on maintenance fees for the van because leasing companies typically cover the costs of regular and irregular maintenance on the vehicle. Whether you’re saving money on an oil change, or new tires, those are big expenditures your business can avoid entirely.
- Upgrades. Leasing allows you to change your mind. It’s that simple. If you feel like the model or van type that you initially leased isn’t living up to your expectations, then leasing provides an easy way to upgrade your van selection, without having to go through the lengthy process of selling the vehicle. This also means you don’t have to take out a large loan, or consolidate other debt in order to pay for the newer vehicle!
Finding the advantages of leasing a van can be simple. Learning how to implement them properly is a whole different story, but understanding the various down sides to leasing a van will help!
Cons
There are a few cons to leasing a van for your business. They may not outweigh the pros, but only you know your business well enough to make that call! Find out all the negative details about leasing in order to make an informed decision for your financial future.
- Long-Run. When it comes to leasing anything, be it furniture, vans, electronics, you name it, you’re going to lose money in the long-run. Yes, you avoid large upfront down payments and maintenance fees, but you will also pay interest and pay for longer. If you purchase a van for your business, the monthly payments will be higher, and the down payment significant. However, you will own the vehicle full out. Whereas with leasing, you’ll keep paying the monthly payment for as long as you need the vehicle.
- Insurance. Insurance rates are generally lower if you own your own vehicle. Leasing insurance tends to be a tad higher. Trying to save money or cut corners with insurance can be difficult, but knowing what you’re getting into with leasing is half the battle.
- No Modification. Leasing a van for your company means you can’t make any unique modifications because you don’t own the vehicle. If you need to permanently remove seats, or want to change the paint color, or need to change anything on the van for your business you can’t. It all is up to the leasing company!
Understanding the various downsides to leasing a van is extremely important to making your final decision. Once you weigh the problems and the benefits, you can make the best decision for your business!
Van Leasing for Your Business: Breaking Down the Pros and Cons
Any informed decision will have its fair share of pros and cons. Knowing how leasing a van help your business grow, or if it could be a financial burden will be helpful. However, you know your business best. Now that you know all the pros and cons of leasing a van, the ultimate decision is up to you!
