A confusing subject but it’s something that affects everyone who drives as well as businesses that run a fleet of vehicles. I have recently looked at different vehicle funding options for my better half and the very helpful sales person (yes, I found a helpful car salesman!) introduced PCP, hire purchase and personal contract hire, outlining the pros/cons of each option. On a personal level, I understand that there are times when owning your vehicle is right for you (and perhaps for some the perception of being able to afford to) but if your vehicle is used for work or even as a workhorse for your business, why would you take ownership and responsibility of managing that vehicle?
My day job is to support a large vehicle rental business with their sales recruitment across the UK and I can talk passionately about what they sell and the pros of what they do but probably without ever really thinking about it from a personal basis. It’s moving away from owning an asset but an asset you have to manage with servicing, maintenance, replacement tyres, breakdown/recovery (let alone the thought of the depreciation over the years of ownership) – so why wouldn’t you consider contract hire as a viable alternative?
Reading this article, it discusses the basic pros and cons of either buying or leasing in the commercial vehicle sector. Looking at the benefits, if you were a business running a fleet which is critical to your business function, would you rely on owning and managing them yourself? I don’t think I would!
A van is an important investment, so here we look at which option might best suit you. Searching for your first van can feel like an assault on the senses. With so many sellers fighting for attention it can be tricky to cut through the upsell, with all the offers and payment plans proving a lot to get to grips with. Broadly speaking you’ve got two options: buying or leasing. So how do they differ, and which will best fit your business?