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Leasing Vs. Buying a Van: Which is Right for You?

12 December 2024

Buying vs Leasing a Van

Choosing whether to lease or buy a van is a big decision. It’s not just about the numbers – it’s about what makes sense for your business, your budget, and how you’re going to use the van.

At First Step, we’re here to make things simple. Whether you’re after cheap van lease deals or just need some guidance, we’re ready to help. Let’s break down the pros and cons of each option so you can decide what works best for you.

Key Points:-

Buying a van: the pros and cons

Why buying might work for you

When you buy a van, it’s all yours – no contracts, no mileage restrictions, and no one telling you what you can or can’t do with it. Want to add custom shelving, fit a roof rack, or brand it with your logo? Go for it!

Buying is also a good long-term investment if you plan to keep the van for years. Once it’s paid off, there are no more monthly payments, and it becomes a valuable asset for your business. Plus, if you’re VAT-registered, you might be able to claim capital allowances, which could help at tax return time.

Why buying might not be the best choice

Here’s the catch – vans don’t come cheap. Buying one, whether outright or through a finance agreement, means a big upfront cost. That initial outlay can put a dent in your cash flow, which is tough if you’re a small business or just starting out.

And let’s not forget depreciation. Vans lose value pretty quickly, so when it’s time to upgrade, you might not get back as much as you hoped. Add to that the ongoing maintenance costs as the van ages, and it can start to feel like a lot to handle.

Leasing a van: the pros and cons

Why leasing might be the better option

Leasing is a great way to get a van without the big upfront cost. Instead of dropping a lump sum, you spread the cost over fixed monthly payments, which makes managing your cash flow a whole lot easier.

At First Step, we offer flexible van lease deals to fit all budgets and needs. Whether you need a small van for local jobs or a bigger one for heavy-duty work, we’ve got you covered.

Leasing also means you’ll always be driving a newer van with the latest features. That’s great for reliability and helps keep your business looking professional. Many leasing agreements even include maintenance packages, so you won’t have to worry about unexpected repair bills. Our lease deals at First Step even include breakdown cover!

For VAT-registered businesses, leasing has another bonus – monthly payments can often be claimed as a business expense, which could mean tax savings.

The trade-offs of leasing

The main downside? You don’t own the van. When the lease period ends, you’ll need to return it unless you decide to buy it with a balloon payment.

Mileage restrictions are another thing to watch out for. Most leasing agreements have mileage limits (though we like to think ours are very generous), and if you go over, you’ll likely face extra charges. So, if your business involves a lot of driving, you’ll need to pick a lease deal that fits your needs.

How to decide what’s right for you

If you’re still unsure, here are some questions to help you figure it out:

Why lease with First Step?

At First Step, we’re all about keeping van leasing simple, affordable, and flexible. Whether you’re after cheap van lease deals, long-term agreements, or a specific model like Ford vans, we’ll help you find the perfect fit.

We work with a range of finance providers and leasing companies to offer deals that suit your financial situation and individual circumstances. Not sure where to start? We’re here to answer your questions and guide you through the process.

Leasing vs. buying: which is right for you?

Leasing works well if you value flexibility, predictable monthly costs, and access to newer vans. Buying might be better if you want ownership, no restrictions, and the chance to build an asset for your business.

Take the next step

Leasing or buying a van isn’t just a decision – it’s an investment in your business’s future. The right choice depends on your goals, your budget, and where you want to go next.

If leasing feels like the smart move for you, we’re here to make it simple. With a range of affordable, hassle-free deals, we’ll help you find the perfect van to drive your business forward. Ready to get started? Let’s make it happen – reach out now!

First Step UK Limited is authorised and regulated by the Financial Conduct Authority, our FCA Firm Reference Number is 654527. First Step UK is a credit broker not a lender. Vehicles shown are for illustration purposes only. All offers are subject to change at any time and are subject to finance approval and vehicle availability. First Step UK Limited registered address is 70 Market Street, Tottington, Bury, BL8 3LJ Registered in England.

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