Congratulations on the growth of your business. If it’s time for your business to get a commercial van, having a dilemma between buying and hiring is inevitable. In this article, we are gonna discuss the pros and cons of buying and hiring a commercial van.
Pros of Buying a Commercial Van:
– No Monthly Payment. You only need to worry about the maintenance and fuel costs. Which saves a lot in long run.
– Buying means having an asset to do whatever you require to do with it. Lease it if you want.
– When you own a commercial van, you can modify it to suit your needs, which is not possible with rented vans.
– When your commercial van has racked a lot of miles, you can sell it to buy another new one.
Cons of Buying a Commercial Van:
– Maintenance costs increase with age and mileage. Your van requires money to replace and repair parts, which will add up eventually.
– Any vehicle loses value. Depreciation is a major disadvantage of owning a commercial van. Even if you sell it after certain miles, you won’t get the value you fancy.
– Technically – owning a vehicle, the maintenance, repair, depreciation gets higher exponentially, and at some point, the value of owning the commercial van surrenders to hiring.
Pros of Hiring a Commercial Van:
– Fixed Cost. Hiring generally is considered as leasing for a certain number of years. The payments need to be done yearly or upfront. But, whatever is the case, the terms of hiring don’t change before the contract ends. That way, you have a monthly fixed cost calculated for the commercial van you hire.
– Typically, vendors change their commercial vans every year to get the most value out of them. So, you get a new commercial van for your business every year. Which minimizes the probability of breakdown while being used.
– No Depreciations for you. When you hire a commercial van, your vendor is liable for any depreciation or repair of the van. Your only liability is to pay the hiring contract.
Cons of Hiring a Commercial Van:
– Managing the miles beforehand to let your vendor know. One aspect of the hiring contract detrimental to business performance is to forecast the miles before hiring a commercial van.
– If you damage the hired commercial van, you might need to pay a substantial damage charge to the vendor. However, the case is almost as same as owning one.