What is the best way to finance a new van for someone self-emplyed?
Answers:
I was going to say contract hire to you when I read the first part of your question.
It will help you budget your buisness more better as you won't have any unexpected bills, on top of that you can get a new van every 3 years or so, whatever contract you take out.
You will also have no worries about trying to sell it, or if it is off the road for major repairs, you get a replacement van and again no worries about huge maintanance bills.
As you are self employed, you need a reliable vehicle, and to keep it in tip top condition costs again money.
Ok, you could buy a brand new van and keep it for as long as you want, after the finance has been paid off then it is yours to keep, but should it go wrong, then that is when you wish you went for contract hire. They will ask what type of buisness you are in, makes sense because if you are a builder then 3 years later the van is going to be in a state, hence I think they charge more for the hire or charge you at the end of the contract.
Hope I have helped you. Jimmy
junk it
It depends on how your business is set-up. I suggest you ask your accountant.
my hubby leases his works for him
Leasing suits most s/employed people.
it depends on your long term plans are if you intend to keep the van for more than 3 years and do a high mileage then hp is the one followed by lease purchase . if you are going to change it within 3 years then lease hire or contract hire are the ones in that order
It depends on how you define cheapest. It is nearly always cheaper in the long term to buy the van outright for cash, Leasing and contract hire companies are not doing you a favour they are earning a profit from your contract. If you are not in the position to purchase a van outright then leasing or contract hire would make sense. Lease purchase would be good if you are a good user that doesn't do too many miles, contract hire would be good if you do higher than average miles and don't want the potentially crippling maintenance bills. If you are doing courier work I would suggest going to a company like Northgate Vehicle Rental and hiring the van on a monthly unlimited mileage basis as this would give you the freedom to change the van if your requirement changes and also means that you don't have to worry about excess mileage penalties.
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