Best way to buy new vans...

[Tech4Homes]

This is relating to my day job, We have a fleet of about 10 vans or so, they are all 05/06 and used daily so they are getting on a bit really, haven't been massively well looked after either. They are all owned, most were bought on finance but most are paid off now, however they are costing us a lot of money each month with things going wrong and MOT's costing £500 + a time (bloody Fiat's!) two have been written off in the past month purely from being too expensive to fix! (not crashed!)

My MD has mentioned about buying some new vans, now I'm of the opinion we should forget buying and think about contract hire?!

Am I right in thinking and my opinion that the vans are more of a tool than an asset? if we can get a set price to hire vans for X amount per month that the costs are going to be reduced, van quality better and after 3 years we get new ones?

How should I go about proposing this to him? I was firstly looking to get a quote to replace the fleet, work out some ideas of cost of money into the company if we sell all the vans and then work out how much we've spent at the garage fixing them to see how it compares over the three years of hiring. I can't imagine hiring will be "cheaper" but it should be far less hassle and keeps us in newer nicer vehicles which portrays a much better company image?!

I know we will be liable to corp tax if we sell all the vehicles but surely it'd be for the greater good?

What are your thoughts and what do you do?

 

[Billmccallum]

see http://www.best4vans.co.uk/finance-options/?gclid=CL6Qxv6oz7gCFUXKtAod600Akg

 

[S1trap]

Hi Craig,

I had just finished sending you a reply but was timed out and lost all the text - infuriating!!
To summarise though I think you obviously realise that leasing is the way forward but need some hard facts to put a proposal to your MD. Contract Hire could actually work out cheaper in the long-run. If you get a chance please have a look at our website, there is a separate section for vans which will give you an idea of the facts and figures for the ones that you think will be 'up for the job'. We would also be able to value your exiting fleet and take them off your hands.

Please fell free to PM me or contact me on Monday as per the details on our website - I'm out and about Monday AM so mobile would be best 07817 747363

Best Regards, Simon

 

[rosewood]

leasing is the way forward, my friend partner owns Hamble Motors (flagship peugeot dealer in southampton) and the deals you can get are amazing. plus things get pretty negotiable when you have 10 vans to order

 

[Risky]

I dont think you have much of a choice. Leasing is your only and best solution. And don't go with fiats what's wrong with the transits?

 

[CAEDAN]

I dont think you have much of a choice. Leasing is your only and best solution. And don't go with fiats what's wrong with the transits?

Had you said that 12 years ago, I would have agreed - transits are not what they used to be, and repairs are far more expensive! £250 bearings as apposed to £9 ones. £1400 pumps, £1400 clutches Axle £3000 and engine failures are all commonplace and no longer simple repair items.

Hiace still has a dry clutch! Reliable too!

 

[chrisbarnes86]

The new Fiat Ducato's from last year or so have improved quite a bit.

But anyway, you say the vans don't get looked after very well? Leasing or Contract Hire will cost you a lot in repairing any damage at the end of the term. Leasing and contract hire can potentially help with cash flow as the monthly costs are lower but if buying you have the equity in the vehicle and can make a decision with regards to keep running the vans or sell them.