Operating a business van can help you save money on logistics and simplify your work life. Be it for service delivery or business-related transportation needs. The bottom line is to identify when a business improvement and long-term investment like a van are needed.
Usually, there’s no definite answer as to when to get a van, whether leased or purchased. But when the opportunity arises, factors such as budget and the specific use the vehicle will serve are essential in landing a decision.
To ensure that you take steps like considering van leasing and loan options for business, below is a guide to ensure you are taking the best possible approach to secure a company van that best suits your business needs. Keep on reading to learn more.
How to Determine When to Get a Business Van
Without a doubt, running a business is difficult, regardless of the industry. Having a van on top of this can turn work into a laborious undertaking if the timing is wrong. Yet with these helpful indicators, anyone can determine their business readiness to acquire a van to meet their logistic need.
1. Financial Readiness
With van leasing and loan options for businesses, company owners and independent entrepreneurs have gained more confidence to take steps to improve their businesses.
With loans as a viable option, requesting financing to lease or buy a van is a piece of cake. Not to mention that paying for business loan interest rates is relatively more convenient than dropping the bulk of your company finances in one go on a vehicle.
2. Immediate Necessity
Understanding your immediate business needs and how such necessities will translate into profit is key. Considering if the van you’ll acquire will aid your company’s scalability and be functionally beneficial for operations in a few years is vital. Refrain from purchasing a van if it’d translate into a business expense and liability down the line.
3. Readiness to Manage and Maintain
Once the need and financial implications have been considered and sorted out, the final step is to account for the extra cost implications that can come with owning and managing a van. Such costs include driver wages, maintenance and repairs, fuel, lease payments, insurance, parking fees, and so on. Once you’re positive that your business can handle the listed expenses, you’re good to go ahead with buying a van.
How to Get a Van for Your Business
The next phase is to go into the technicalities of how to go about securing a van since you might have established the necessity for leasing or buying a business commercial van. Keep on reading below to find out more.
1. Pick the Type of Van to Acquire
Before purchasing a van, it’s critical to conduct tests and accurately assess your business needs. Before you narrow down the type of van to get, know the purpose, the routes, average daily distance the van will cover so you can narrow down the search. Check out these other major features highlighted to streamline your search.
- New Vs. Used
Purchasing a new or used van for your business involves many decisions. The advantages of a new van include an optimal engine and often a lengthy warranty. But a new van is likely to cost significantly more than a used van and can lose value quickly. On the other hand, a used commercial van costs less but requires a lot of care.
- Van Weight Capacity
Be cautious when researching the weight and maximum capacity of the van you plan to acquire. This is because an overloaded vehicle can attract severe fines or total seizure and disruption in operations.
- Travel Distance
For long-distance van rides, prioritize comfort and space.
- Anti-Theft Features
Targeting vans with alarms and trackers is practical. This doesn’t have to be a deal breaker, as you can invest in installing such devices after purchase.
- Fuel Efficiency
Do well to think ahead of time by taking the running costs of the van or vans into account. Choose a van with decent fuel economy.
- Safety Features
Spring for vans with safety features like automated emergency braking and the like.
2. Look Into the Size of the Van to Acquire
Think about what kind of vehicle best suits your demands when making your business automobile choice.
Should your business plan involve utilizing the van for transporting light and heavy cargo, target models with bigger cargo space. Delivery and product distribution are possible in a compact van, a little bigger than an SUV. Furniture and shipping items are best transported in larger vans. In all, consider what you’ll transport most of the time before finally landing on a choice.
3. Use Your Business Name to Acquire Van
If you use your business name, you can secure tax advantages by acquiring a van through the business and not as an individual. This is mainly because companies are permitted to write off and deduct basic auto expenses, including maintenance, fuel costs, tire costs, van loan interest, and vehicle depreciation, on your government obligations.
4. Use Your Business’ Bank to Acquire Van
By using your corporate bank account to purchase your van, you can prevent unintentional exposure to liability aside from securing tax advantages. To qualify for tax deductions, all vehicle-related expenses, including those for drivers’ wages, maintenance and repairs, fuel, and insurance, should be settled with your corporate account.
5. Get Van Insurance
The last step to take is commercial vehicle insurance. Any vehicle you purchase or lease needs to have insurance. These insurance plans to ensure legal freedom from liabilities and physical damage.
Due to a combination of risk factors associated with business vans, the cost of insurance for a commercial vehicle may be higher than that of an ordinary automobile.
Keep in mind that the insurance is likely to increase based on the size and cost of your van. If your operations involve the provision of transportation solutions, additional liability insurance requirements may be imposed by authorities.
Conclusion
With the help of this guide, leasing or purchasing a van for your enterprise is a breeze. Nonetheless, you must be smart about making a go for it. Keep in mind the insights mentioned above to help you out.
