Van Hire or Buy

[sunkrz]

Hi All,

Our company is a courier company and we are looking to hire or purchase a small van to full fill our requirements.
Any suggestion Lease or Buy is the good option and if any help where to lease van in good price.

Thank you

 

[faradaykeynes]

it depends on your budget and extent of usage

 

[Moneyman]

The first thing to work out is IF anyone will lease a van to you. As a startup this could be a real problem for a limited company.
First work that out and then make the decision.

 

[sunkrz]

Budget wise we are fine but of course want cheap solution,Is anyone already leasing van

 

[faradaykeynes]

Perhaps speak to @Andy Alderson , he is full memeber here
his website www.vanarama.co.uk

 

[splashernet services]

100% purchase it... Because one day you can re sell it and get some money back. When you hire you get nothing back

 

[faradaykeynes]

you can sell it on finance lease , once all paid off

 

[businessfunding]

I'm guessing you mean contract hire (ie fixed rental, fixed term, hand back?)

Your main considerations to be cashflow management and opportunity cost.

The key benefit of contract hire is that you can budget costs exactly - particularly if you go fully maintained. You might 'win' or 'lose' against ownership, but that is irrelevant - you have full control of your costs.

Opportunity cost relates to what you could do with the money to make it work harder - in the case that largely relies on the growth plans for the business.

There are also tax considerations which can only be commented on by someone in possession of all the relevant facts about you and your business.

Which is cheapest - the answer is always - it depends...

 

[alex-a]

If you hire and just say things go wrong, you can always hand it back.

Thanks

Neil