From time to to time a business may need the use of a new van. One way of acquiring one is to buy it, either with the money up front or through a loan. Another way to acquire the new van is to sign a leasing deal with a business contract hire company.
The problem with buying a vehicle outright is the cost as it will a put hole in most businesses budgets. Even taking out a loan to purchase the van may be expensive. A more cost effective way of securing the vehicle may be through leasing it. Unlike when buying, you would not actually own the van, that would remain the property of the contract hire company from which you leased the vehicle. But there are certain advantages with leasing that may appeal to a company.
Because a leased vehicle remains the property of the leasing company, the business will not have to worry about depreciation. They sign a lease, anything between 12 to 60 months and receive the van. Once the lease is over they can hand back the van and then sign a lease for a new one. This means that a business can afford to regularly change their fleet of vehicles, something that might be unaffordable for those who who choose outright.
Because leasing is generally cheaper than buying either outright or by taking out a loan - businesses may be able to afford a better model of van should they sign a a deal with a business contract hire company. The way leasing deals are structured it may prove more advantageous to lease rather than actually buy the vehicle.
When deciding whether to buy or lease a new van, it is worth comparing the advantages and disadvantages. The best way to do to do this and work out the running costs of the van and what your business can afford. That will help you compare the expense of buying the van with leasing it.