Should You Buy Or Rent Your Next Van?

It is now cheaper to rent a commercial vehicle long-term than to buy it.

That’s the latest from Jeremy Feener, founder of online car and van rental website hiremorecar.com

The company, based out of Kent, has enjoyed an unprecedented 70% increase in growth, over the last 12 months. And as well as low inflation rates, Feeney also credits this growth to a change in perception towards van rentals by business owners and individuals.

“A new van loses more than 40% of its value in the first year,” he said. “If you rent a van on a 12-month contract, and cover 24,000 business miles with an HM Customs and Revenue mileage tax allowance of £687.50, this would cover the rental cost of a vehicle such as a VW T28 Transporter.

“With little or no inflation, the way around this is to take out a rental vehicle. Unless your business is highly profitable, you can’t afford to keep on buying new, and anyway why would you want to put up with old technology?

“We live in a world that is changing at a much faster pace and where people are concerned about long-term commitment. I have re-engineered the company, offering motoring for the age of uncertainty.”

However, countering this argument are a number of compelling “van ownership” benefits such as:

  • Freedom to use the van without restriction
  • Manufacturer’s warranty for new or nearly-new vans
  • Ability to offset the van’s business running costs against tax
  • Ability to claim your own capital allowances without being VAT-registered

So whether you buy a van or not comes down to the financial details of your specific situation. Do the Maths, weigh up the options and see whether you’d be better off buying or leasing your next van.

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