You are looking for a new vehicle or vehicles for the business and you may have noticed that there are more options than in the past in how to obtain a vehicle.
Although this is simplifying the issue there are generally two options, you can buy outright or lease a vehicle and there are advantages to either way really, let’s look at some of them.
What Type Of Vehicle Do You Want
What type of vehicle are you looking for? If it’s a car for use for yourself or management you might be more mindful of getting something a little bit more luxurious and may be looking at newer rather than older vehicles. If you are looking for a more functional vehicle or one that’s going to see a lot of dirty or physical work then you may look to an older and cheaper vehicle to prevent wasting a lot of cash on these types of vehicles.
New Or 2nd Hand
There are reasons that buying second hand can save you money but you should be mindful of the possibility of much more frequent repairs and costly issues with an older vehicle. You will have much more of a piece of mid with a brand new vehicle but a much higher upfront cost.
How Would You Pay For A Purchase
Do you have the funds to pay for a vehicle completely outright? It’s a great position to be in if you can do it but otherwise, you will no doubt need the vehicle now so it’s likely you will need to source a good place to find a car loan to spread the cost and be able to keep trading until the car or van is paid off. You usually will need to find the funds to pay a deposit as well as the monthly repayments so there is some upfront cost involved in this.
What Are The Advantages Of Leasing
If you are interested in leasing then there are some advantages to this. The monthly payments are generally lower than if you are taking out car finance. You will save money upfront but will not have the value of owning the vehicle as an asset. You do often have the advantage of servicing and/or insurance or other perks as part of the contract which can be very good but also be sure to check if you are not actually paying a huge amount more than if you were to organise these aspects of it by yourself by another firm.
Should You Take An Option To Purchase
There are finance and lease options that are flexible and offer you the choice at the end of the contract of keeping the vehicle and paying a buy-out fee or even continuing to lease the same vehicle at a lower price once you get to the end. These are all great examples of how vehicle options are much more than just a straight choice between buying or leasing these days.