When buying a new van for your business, there are a few points to consider getting the best financial deal and most appropriate vehicle for your company’s needs. Here are some important tips to consider before you make your purchase.
New or Used – How Much Can I Afford to Spend on a Van?
As purchasing a business vehicle is a huge business expense, ask yourself what your top end budget is before you begin your search. A company van should be a reliable source of transport whilst offering a long-term investment. Whether you choose to buy new or second hand, each option has its implications.
A new van is initially a huge cost, but it provides a knowledge that you are getting a trustworthy van under warranty. A second-hand van may be initially cheaper, but there is no guarantee it will be a long-term good runner, and you may lose profit each time it’s off the road, whilst accumulating costly repair bills.
How do you plan to pay for your van? Will you use cash direct from your company’s profits, or could you utilise a finance option or operating lease? It is crucial to know this information beforehand to ensure your money is readily accessible, as well as a viable means of payment for the other party.
Running Costs – What Additional Expenses Will a Van Incur?
Alongside the initial outlay of purchasing a van, there then comes all the other business expenses that need to be regularly accounted for in its day-to-day running. Fuel, road tax and insurance are usually a set amount each month, and easier figures to account for.
However, the maintenance of a van can often be irregular and such potential expenses need to be allocated in your running figures as well. With new vans, maintenance costs should not be a huge issue, but with a second-hand van it is worth figuring in a budget for such costs.
Who will be responsible for driving your van, and do you need to add several other people to your insurance policy? This becomes costly with younger drivers, and indeed those with points on their license, as it automatically increases your original quote. Think ahead as to where your van will be left overnight, as this too can affect your insurance costs.
Practicality – Does the Van Have the Required Space Inside?
What size and type of van do you practically require for your business use? Will you need a large and spacious sized van to transport goods around, or would a smaller sized van suit your needs? Many businesses buy vehicles for their practicality – picking up goods, running errands and carrying tools, whilst other businesses work from inside of such vans.
Whilst the bigger the size, the bigger the cost, you also need to take account of any plans to modify the van to personal specification. How much more would this cost to do? Ultimately, could your choice of van cope with such alterations or would you need a specific type of van if you wanted to work on it further?
Image – What Will This Van Say About My Business?
Your van may be the first point of contact a customer has with your company; it is therefore worth ensuring the image of your van is at its best upon first impressions. Bear this in mind when you assess the visible state and condition of your potential van, particularly if it is a second-hand purchase.
Although adding signage to a van can be a costly initial outlay, it is also a great way to attract further custom, promoting your company name further afield. Can you afford to add signage to your van and is it the type of vehicle which will allow you creative licence to add your details the way you may prefer.
Approach the purchase of a company van as you would any other business transaction. Ask yourself if its addition will create a means of further income, whilst allowing your company to reap some of its costs back. That way, you are sure to make the best van choice decision whilst satisfying your financial circumstances.