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Buy Or Lease?

rcproperty

Well-known member
Messages
7,757
If I pick this new contract up, I'm thinking of getting a 2nd van. What do you think would be better buy a van or get a lease van?

I know the company concept O2 uses lease vans.

 
Regarding buy or lease a new van maybe would be best if you speak with your accountant for advice.

 
If you lease something then you can offset your payments against profits as you go along whereas if you buy it then you pay a large amount upfront but can only offset a portion each year until you have written the value of the asset off.

Having said that you can now offset the first £12,500 (I think) of a vehicles cost in any one year so if the van costs less than that (excluding VAT) then you're probably better off buying it outright if you've got the cash.

 
I can tell you what I say having leased vehicles in the past. Don't touch it with a bargepole. Buy new, its cheaper and at the end of the deal its yours. I have a five year old van, its paid for and its all mine. Its good for at least another five years.. I don't have to hand it back to some leasing company so they can sell it and make a profit. And they do make a profit out of you otherwise why would they do it?

 
Definitely buy it I you have the funds, leasing is like renting a property, you pay over the odds and get nothing at the end.

Also are you allowed to sign write leased vehicles??

 
Or mod them e.g drill holes through the floor to etc for wfp kit?

concept20 obviously have been given permission to do so in their franchise package but would need to confirm with whatever leasing company you go with to see if you can mod a leased van.

 
buying all the way its yours at the end of the day /emoticons/smile.png u can then sell it /emoticons/smile.png

 
the thing i like about leasing a van, every 2 or 5 years you get a brand new van!!

Also are you allowed to sign write leased vehicles??
yes you can sign write them, as long as its the type that comes of easy. like a wrap or what i have on my van.

 
Or mod them e.g drill holes through the floor to etc for wfp kit?

concept20 obviously have been given permission to do so in their franchise package but would need to confirm with whatever leasing company you go with to see if you can mod a leased van.
yes i think you can do all this to it, as long as you let them know. concept cuts big holes in the roof of the vans, and all they do then is put a spinning vent thing on!

 
Lol I would still say buy it mate, then if the company ever has finance issues you can sell it for a lump sum /emoticons/smile.png

 
just found this list that someones put together about the pros and cons of both owning and leasing

Pros and cons of buying outright

you own it

you tax it

only a diminishing amount can be written off each year

its value diminishes as it gets older and so does the capital you invested in it

you pay for the repairs on it

you mot it

your capital is tied up in it until you sell it on

you can do what you want with it

no monthly payments but its value goes down

Pros and cons of lease hire

your limited on the mileage (unless mileage is not a problem ive got a 10000 limit on mine per year ill do no where near that)

you dont own it

you can do what you want with it ie rack it out, signwriting etc

its covered by the warranty for the term of the lease so no repair bills

no need to mot it as its brand new and exempt from an mot for the 3 years of the lease

they tax it

all the costs can be written off

you hand it back after 3 years so you have to strip it out of your stuff

you hand it back after 3 years and get another new one


you dont have to faff about selling it at the end of 3 years



you have the capital sitting in your bank, not depreciating in value


you make a payment every month your commited to.



 
He forgot to mention you have to be approved by the finance company that the leasing company use before you can lease one of their vans too. There is also lots of small print that could cost you dearly if you don't keep up with the repayments...

 
He forgot to mention you have to be approved by the finance company that the leasing company use before you can lease one of their vans too. There is also lots of small print that could cost you dearly if you don't keep up with the repayments....
that would only be a problem to some people,

 
i would never buy a new van anyway as you lose to much in the first year get your self a 2-3 year van keep it for a couple if years and sell it on you wont lose much and it is yours

 
i would never buy a new van anyway as you lose to much in the first year get your self a 2-3 year van keep it for a couple if years and sell it on you wont lose much and it is yours
Totally Agree mate

 
i would never buy a new van anyway as you lose to much in the first year get your self a 2-3 year van keep it for a couple if years and sell it on you wont lose much and it is yours
once u buy a new van the price instantly drops cos it got 1 owner to its name lol /emoticons/tongue.png

 
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