How can I finance a van rental for my business?
There is one reason why the business van is a staple on the road: it is an essential tool for both small and large business alike. However, financing a van can often be challenging and can impact on the bottom line significantly. Essentially, there are two options; buying a van or renting a van.
Buying a van is often not an option as you need a lot of available cash. Second-hand vans have a more attractive price, but there are additional issues, such as reliability and presentation: all companies want to project the image of success and nothing does this quite like a new company vehicle.
The second option, long term renting, is known as business van leasing. Business van finance allows a business manager to obtain a van at affordable regular prices, and a contract which is tailormade to the needs of the enterprise.
How do you prepare for business van financing?
- Budget: Always high on the list of priorities when looking at new investments, and leasing a new vehicle for your company is no different. The lease agreement cost is taken from the agreement length and the agreed estimated mileage. It is also important to consider maintenance, and how this will be covered. The option exists for either pay as you go or an inclusive maintenance package
- Deposit: How much can you pay as a deposit? That is a question only you can answer. The amount will affect the monthly payments, so you should consider both the deposit and the amount you want to pay monthly together, as one decision
- Finance partner: You must choose a finance deal that is able to meet the specific requirements of your company. This will give you the right support to get the vans and accessories to help your business to grow.
The leasing options are as follows:
Flexible long term hires
Sometimes you need more flexibility than offered by traditional lengthy fixed term contracts. Circumstances and needs can change, which is why the flexibility offered by rental companies such as Mayday Vehicle Rentals can be very convenient. Their long term programme starts from a minimum of 28 days and allows you to decide how long you want to keep the vehicle thereafter. Mayday even offer 2000 free miles inclusive within their rates for every 28 day period you hire.
Commercial van contract hire
Choose this option when you know the amount of time you need the vehicle for and the mileage, in advance. The cost of agreed fixed monthly payments is then based on this. This method is simple, clean and predictable. At the end of the contract, return the vehicle and get a new one, if necessary.
Contract and hire purchase
This option is the same as the above, but gives you the chance of buying your van at the end of the contract.
Business van leasing
This option gives you an up-to-date van and a manageable payment plan, allowing you to get the help you need to make your business grow.