How to Buy a Van to Elevate Your Small Business

There are a range of occupations that require you to have a van for your business. From courier drivers and dog walkers to builders and hairdressers, there are a number of self-employed drivers who may need a van. If you’re just setting up your own business or you’re wanting to take your current business to the next level, read our top tips on how to get the right van for your small business.

Which Van is Right for You?

Before you start considering funding options for your next van, we advise you to set your van requirements first. This can help to speed up the buying process and ensure you’re getting a van that is going to suit your needs. Think about things like cargo and capacity, and loading and accessibility. All of which will help you find a van that fits your needs.

A van’s payload is the maximum weight a van can carry and includes the van’s weight, passengers, equipment, and cargo. Exceeding or overloading your van’s payload is illegal and can result in fines or legal consequences. This is why it’s important that you choose a payload that will suit your maximum weight at any one time.

In addition to the payload, you should also consider the size and layout of the cargo area. For example, if you’re a florist, you’ll need space that can accommodate flower arrangements without damage. Builders might require compartments for tools and materials, while caterers would need temperature-controlled storage to keep food fresh.

Should You Buy a Van with Cash?

In short, yes, you should buy a van with cash. It’s one of the easiest and most cost-effective ways to get a vehicle. There are no monthly payments, there are no mileage or damage charges, and you’ll own the car from the start of the agreement. However, vans can be expensive to buy outright and it may not be realistic for many. A smaller budget with cash may also restrict your options and mean you can only afford an older, second-hand van.

Moreover, buying with cash provides you with the flexibility to customize the van to suit your specific business needs. You can invest in specialized equipment or branding without worrying about violating the terms of a finance agreement.

Can You Get a Van on Finance?

Van finance is very popular. It helps drivers get a newer and better van than they would get by buying with cash and there are plenty of van finance companies to choose from. Before committing to getting a car on finance, you will need to have a lender approve you and want to offer you finance. Bad credit van finance can be possible but having a low credit score can make it more expensive to borrow for a van. So, before you look into van financing, take a look at your credit score and make any improvements where possible.

There are also a number of different van finance options you can look into. The most popular ways to finance a van are through a personal loan, hire purchase car finance or Personal Contract Purchase deal. Take some time to explore each to see which could be the right deal for you.

Additionally, consider the total cost of finance, including interest rates and any additional fees. It’s essential to compare different offers to find the most affordable and suitable option for your business.

Can You Lease a Van?

Van leasing is similar to finance, but you’ll never own the vehicle. Leasing is like a simple form of car hire, usually over a longer period. The viability of car leasing is that your monthly payment is fixed until the end of the term, and everything is included in your monthly payment. Usually, insurance and maintenance are taken care of in your monthly payment, so you don’t have to worry about running costs either. Leasing can have mileage restrictions though, and you are usually limited when it comes to making modifications.

Leasing can be a great option if you prefer driving a new van every few years or if you want to avoid the hassle of ownership responsibilities. However, be mindful of the end-of-lease conditions and any potential charges for exceeding mileage limits or wear and tear.

How Much Does Running a Van Cost?

When you’re considering buying a van, many drivers overlook the running and maintenance costs of van ownership. When you own a van, you’ll need to think about things like van insurance, Vehicle Excise Duty, fuel costs, breakdown cover, and MOT and servicing costs. If your business is VAT registered, you’ll be able to claim back VAT on fuel costs which can help to make the cost of ownership cheaper.

It’s also wise to budget for unexpected repairs and maintenance. Regular servicing can help prevent major issues and ensure your van remains reliable. Additionally, investing in fuel-efficient models can save on fuel costs and contribute to lower overall running expenses.