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 cant hold everything that its 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 its 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 youre not responsible to someone else if you damage it – its 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.