Buy Or Lease?

[Vince Green]

I completely disagree with that view, Buy a new van and keep it ten years. Two year old vans cost nearly as much as new and you are just starting on the worst phase of depreciation. And it will have been a fleet van and been abused. You don't know if its been properly serviced etc chances are it hasn't.

In this business a van should last ten years easily. If you buy a new van now you can negotiate a hefty discount, 30% easily That means there is not that big a difference between new and a couple of years old. When I bought my van I got £3,800 off it and there were second hand vans on Autotrader being offered for more than I paid new. Its been totally reliable and the only thing thats needed replacing other than routine service items is one bulb.

Looking at all the figures taken over ten years this is massively cheaper option

 

[Extremecleansussex]

There are two leasing options which you really need to consider.

The first is your typical motor vehicle lease whereby you give it back after 2 or 3 years and get a new one. Great for people who like to drive new cars/vans.

The other option is asset leasing whereby you pay for it for 3 years and then pay one final payment (usually one months lease payment) and the asset is yours. This way you have all the tax benefits of leasing but still own the vehicle at the end of the term and have gained tax advantage on the whole amount paid.