Leasing vs Purchasing: How to Choose the Right Vehicle for Your Retail Business.

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If you’re planning to start your own retail business, there are a lot of things you have to consider. One of the main factors you need to take into account is how you can move products from point A to point B efficiently. After all, retail businesses operate by providing goods to customers.

However, you can’t deny that acquiring business vans for your retail business can significantly impact your bottom line.

Photo by Christian Chen on Unsplash

So the question arises — how can you purchase your business vans without breaking the bank? If you want to compare your options, continue reading to discover more!

Leasing your business vans

Many retail businesses tend to lease their business vans, making it a popular choice. They lease business vans for a specific period, and at the end of the lease term, you can return the vehicle and lease a new one. But how can it benefit your retail business? Here’s how.

Lower initial costs

If you don’t want to pay significant upfront costs, leasing your business vans is a better option. Compared to outright purchasing a van, leasing only requires that you pay a lower upfront payment, freeing your capital for other essential aspects of your business.

You can predict expenses

Monthly lease payments are usually fixed. This makes it easier for you to budget your expenses. With leasing, you won’t need to worry about unexpected repair costs. After all, newer leased vehicles are typically under warranty.

Access to newer vehicles

Do you know what makes the transport of goods stressful for retail companies? It’s the frequent breakdowns brought by older models. However, leasing business vans allows you to regularly upgrade your fleet. You’ll have the latest models with advanced technology without spending too much of your resources!

Purchasing your business vans

If you want business vans that are under your retail business’ name, then purchasing your fleet is your choice. This gives you complete control of your fleet, from repair and maintenance to disposal. Here are some benefits you can reap from purchasing your business vans from the get-go.

It’s a long-term investment

When you buy your fleet, it becomes a part of your business’ assets, allowing it to build equity over time. After all, you can use it for a long-time, until you decide to dispose of it. Plus, you’ll own the vehicle outright and reduce your ongoing expenses with leasing!

No mileage restrictions

A common disadvantage when leasing business vans is mileage restrictions. After all, another business has already used the vans and therefore has reduced the mileage.

However, it isn’t an issue when you purchase from the get-go. You can drive as much as you want without worrying about mileage limits or even wear and tear fees! Plus, you can customise your vans to suit your business operations!

No monthly repayments after the loan terms

Whether you’re leasing or purchasing, acquiring business vans will require financing. The only difference is that you’re not obligated to make monthly vehicle expenses after your auto loan is paid off when you choose to purchase your fleet. This means you can save a significant amount, and all you have to worry about are the maintenance and insurance costs!

Acquiring the fleet for your retail business requires careful thought and planning. After all, you’re going to spend money, and it isn’t good news if you can’t meet your monthly repayments!

So, assess your financial position first and consult with business van finance specialists. This way, you can ensure every cent you’ve loaned will be all worth it!

About the author

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Like Minds is a global thought leadership platform delivering world class events on business development, knowledge and insight aimed at entrepreneurs and business leaders to engage, stimulate and empower them to become global businesses of the future. We also offer a bespoke service for corporate clients and training programmes under the Like Minds U brand. For more information please email bespoke@wearelikeminds.com