As a business owner, you could feel your heart swelling with pride as you finalise the purchase of a van for your small company for the first time. Buying a van can feel like a milestone in your corporate journey – rather like opening the company’s first office or sending its first tax return.
However, given the hefty expense of buying a van, you must be careful which one you buy – and a wide range of factors, including those listed below, can feed into that ultimate decision.
How will the vehicle be used?
Vans are available in various models accounting for different needs. Therefore, you should carefully consider your firm’s own needs in a van and then select the most appropriate vehicle for them.
If you often work in urban areas as a field service engineer or as part of a light delivery crew, for example, you might need a small-to-medium-sized van, says The Telegraph. However, if you anticipate using the van to carry larger loads, consider a Tipper truck or Dropside.
Do you have little money to spend on buying a van?
You’ve obviously got a conundrum on your hands if this is the case, but the nature of your firm’s work calls for the use of a van. However, you could snatch victory from the jaws of defeat by buying the van through what is known as a hire purchase agreement, as smallbusiness.co.uk explains.
This agreement would require you to pay an initial deposit for a van, which you can use while paying further regularly monthly payments until you gain ownership of this vehicle.
Which tyres would you need for your van?
Van tyres should not be treated as interchangeable with car tyres. They differ in numerous ways; as Kwik Fit explains, the former are designed to handle heavier loads and higher inflation pressures, while you can also expect them to be more robust.
If you are considering a particular van, does its manufacturer recommend a specific type of tyre for it? In the UK, “Extra Load” (XL) and “Reinforced” (RF) van tyres are basically reinforced versions of car tyres, but “C” van tyres have been made specifically for use on vans and light trucks.
What are the tax implications?
If you sourced a van through contract hire, you could reclaim all VAT on that van provided that your company is VAT-registered and the van is limited to business use. None of these benefits would apply if you bought the vehicle instead, so take this into account.
What insurance do you need?
It is legally necessary to hold commercial van insurance if you want to take a van to UK roads for corporate purposes. However, the cost of your van insurance can depend on various factors, including the vehicle’s age and size, not to mention how the van is used.
If some quotes you see for such insurance are daunting you, keep in mind that a broker could help you to locate a cost-effective policy for van insurance.