The best way to buy a new Luton van for your business isn’t always clear. In this article we go through the pros and cons of Finance Lease, Contract Hire and Hire Purchase vs buying outright.
Choosing the right finance option for your business, whether you’re a sole trader, small business or a large enterprise, is vital. In the demanding business environment we live in today, making sure you choose the best finance option can give you an advantage over competitors who find themselves cash starved after a Luton van purchase.
Here are a few advantages to financing or leasing a new low loader van instead vs buying outright.
|Lower up-front cost|
|Brand new Luton van||*|
|Don’t have to worry about depreciation|
|Maintenance can be included (Contract Hire)|
|Better cash flow|
|You can sell your van whenever (also applicable to Finance Lease)|
|You own the van outright|
*At a significant cost.
As a business, there are three main types of finance that you will see when it comes to buying a new van. These are Hire Purchase, Finance Lease and Contract Hire. There are important differences between each of these finance options. You can find comprehensive information about each of these finance options by following this link.