Whether you are starting a new business or looking to expand your operations, an investment as significant as a van is one that needs to be considered carefully. Working out how you are going to afford a new vehicle can be difficult, yet you do have two main choices available, and this is buying the van outright or seeking van finance.
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It’s not as straightforward as you may think
A lot of people think it is as simple as the following: if you have enough money to buy a van outright, then you should purchase it, yet if you do not have the funds, then you need to go down the finance route. While this is true to an extent, there are many other variables that need to be considered when making your decision. You may have the money to buy a van outright, yet it still may be better to look for finance solutions instead, and a lot of business owners do this.
Why you should consider van finance
There are many different reasons why van finance is advisable. Firstly, you will be able to make smaller payments over a longer period of time, which is a lot more manageable for business owners, especially when you have fuel and other costs to take into account. You can check out New Era Fuels to lower the price of fuel. If you were to buy a van outright, you would have to make a huge initial outlay, and this is something a lot of people cannot afford. Even those who can afford this would rather pay a small manageable amount every month as opposed to tying up all of their funds into one area of their business. You never know what could happen, and thus if you only have a small amount of money available, you certainly don’t want to put it all in one basket so to speak.
You also have the benefit that you may be able to secure a van that you would otherwise not be able to afford if you were purchasing outright. This will give you the opportunity to reap the rewards of higher levels of quality, which will not only benefit your business in terms of efficiency, but it will have a positive impact on your brand image as well. Those who see your van are going to have a much better impression of your business if it is of a high quality.
Moreover, with the sheer scope of finance companies available nowadays, you are able to find a solution that is entirely suited to your business. Do you want to repay the money over two years or do you need a lengthier contract, i.e. five years? Do you want to make monthly repayments or quarterly repayments? You are bound to find a finance solution that is tailored to suit your needs.
There are many benefits associated with choosing van finance as opposed to purchasing one outright. Ultimately, it is all about determining what is going to be the best for your business, yet financing is definitely something worth considering even if you do have the funds to purchase a van outright.
