Van lease hire is something very few small UK firms consider doing. This is a shame because it is a great way of providing your business with the vehicle or vehicles that they need.
What is Van Lease Hire?
As the name suggests van lease hire is a way of hiring a van. However, because of the wording of the contract you are viewed as leasing that vehicle rather than simply hiring it. This wording is important because it gives you the ability to take advantage of several tax rules. Whilst you do not end up paying any less in tax leasing the van enables you to spread the tax burden more evenly. It can really help with cash flow therefore many accountants recommend that people look at leasing rather than hiring their commercial vehicles.
A common misconception is that at the end of the lease period you end up owning the vehicle. In a way this is correct, however you have to actually sell the vehicle to a third party immediately. This is a technicality, which should not worry greatly over. However, it is important to understand exactly what happens at the end of the lease term to avoid having to pay out a large sum of money.
The Advantages of Van Lease Hire
The main advantages of van lease hire are financial. As has already been mentioned there are tax advantages available. In addition, because of the relatively low deposit you have to put down there is a cash flow advantages to leasing a vehicle for your business.
Using a good van lease hire service ensures that you always have a reliable vehicle to use. If you buy your own vehicle after a few years, it will become less reliable simply because of its age. In addition, if you drive around in new vehicles you make a far better impression on your existing and potential customers. A properly branded van looks good and can bring in a significant amount of passing trade. The right kind of van is important for your company’s branding and image as well as being a practical tool.
Visit the Van Warehouse to find the best range of van lease hire deals. We offer a huge choice of vans and lease terms.
