Buying a vehicle will see it immediately depreciate in value and after the warranty on your vehicle expires, you are responsible for any repairs and maintenance costs. Driving older vehicles can often mean increased maintenance and repair costs
Bolton, Lancashire (PRWEB) March 28, 2013
First Step Leasing possess over twenty years’ experience within the motor industry providing lease vans to start-up enterprises, small businesses and larger brand name companies.
“The number of small businesses is steadily increasing, and many of these require lease vans or a business vehicle,” says owner Roy Ganley. “However, when many small business owners are starting out, it can be hard to garner what kind of vehicle best suits your needs without running costs adding to a tight budget.”
Here are the First Step Leasing tips for obtaining your first company vehicle:
1. Van size and Purpose
“This is the first element which will give you an idea of the size of vehicle that your company needs," explains Roy Ganley. “Plenty of people make the mistake of selecting a small van at the beginning believing that it will keep their costs down, only to discover months later that the vehicle can’t hold everything that it’s required to do for the business to function. This creates a situation where buying a larger vehicle costs time, money and effort, so it really is worth getting the right sized vehicle in the first place.”
2. To Buy or to Hire?
“Buying and leasing are very different - and what might be right for some small businesses may not be right for others, so from the outset it’s important that you recognise the differences so you can select the best option for your company,” advises Roy Ganley. “If you purchase the vehicle, you can sell it on in the future, there are no mileage restrictions and you’re not responsible to someone else if you damage it - it’s your vehicle and thus your responsibility and equally, it can be adorned with advertising in whatever style you like.”
“However, buying a vehicle will see it immediately depreciate in value and after the warranty on your vehicle expires, you are responsible for any repairs and maintenance costs. Driving older vehicles can often mean increased maintenance and repair costs, whereas if you lease a van, a newer model can often offer lower fuel output.”
3. What kinds of lease deals are available?
Contract Hire – Vehicles continue to be owned by the funder yet are hired to you for a set period of time and at a fixed monthly rate. This option is useful for companies wanting to free up credit lines or improve cash flow by implementing fixed cost fleet operation.
Lease Purchase – The preferred method of VAT registered businesses to buy vans, which are acquired by calculating an affordable monthly payment based on the proposed annual mileage.
Hire Purchase – Allows a certain degree of flexibility as the monthly repayments are calculated according to the initial deposit amount, the contract duration and the vehicle sale price.
Finance Lease – A good option for small businesses, this is a VAT method to lease a van for registered companies with maintenance packages (if required). The monthly rental cost is determined by the vehicle price, period of rental and estimated future value based on the proposed annual mileage.
4. Can I add signage to a lease vehicle?
“Having your logo, contact details and relevant signage applied to your business vehicle is essential,” explains Roy Ganley. “However, if you have opted for van leasing, you need to read the small print to discover exactly what kind of signage can be put onto the vehicle. There are many different kinds available from temporary decals which can be easily removed when the vehicle is returned, to more permanent solutions.”
5. Do I need some form of van liner?
“Nearly every kind of business van will require a liner,” says Roy Ganley. “Especially if your company is involves the use of tools and machinery, or the transportation of goods and stock. Whether you intend to van lease or purchase, when discussing your needs with your vehicle supplier you need to ask whether the company supplies any racking or ply lining as part of a deal, or whether it is an essential cost that you might not have factored into your vehicle budget yet.”
“We have released our tips to provide support to individuals who are currently growing their own company and need a business van or car to enable their enterprise to expand,” says Roy Ganley.
“Our unrivalled experience leasing vans means we’re more equipped than most to advise new business owners with any queries in regard to the best finance option and vehicle size. First Step Leasing has no showrooms or pushy sales staff so we can pass those savings and our experience directly onto our customers.”
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