When starting a man and van hire business, options arise on the acquisition mode of the van for transport. You can rent, buy or lease the van. Taking into consideration that you are just starting out and saving money is vital to your business start up success, leasing seems to be the best option. It has many advantages over purchasing the vans.
One of the advantages of leasing is that considering you are venturing into new grounds with unknown level of success and risk at first, leasing does not require a big initial outlay or exorbitant deposit on the vehicle. The initial payment is mostly only around 3 to 4 times the monthly installments, thus freeing up your cash for other vital expenses like advertisement Man and Van.
Leasing has very low monthly payments. This gives you a relief before your business takes root and establishes a large following. You can also negotiate with the leasing company to allow you to make quarterly payments which further gives you time and money to sell out your business. The low monthly payments are much less than you would be paying if you were financing the total cost of the van thus leaving you money to spend on other business operations.
Leasing a vehicle offers you tax advantages. This is because when you lease you can offset the whole leasing amount against your tax bill especially for smaller vans. This is extremely vital for a start up business especially after spending a lot of money registering the vehicle with the relevant authorities. In the same vein, you can reclaim 100% of the value added tax on maintenance arrangement as well as 100% of the value added tax on the monthly installments.
One of the best advantages of a lease arrangement is that you are saved from the headache of advertising and negotiating whenever you intend to sell the vehicle. For the man in a van business there comes a time when you might need to dispose of your vehicle either to get a bigger or better one. If you had bought the vehicle in the first place, then selling it will be a hassle. With leasing, all you need is to communicate your intention to the leasing company and they just repossess it. After that you can take a lease on a new van and continue with your business.