Buying a company van - what to be aware of?

BakerBoy

Hello,

A week or so ago I found a thread here about a paid-for checking facility on buying a used vehicle, and now I can't find it!!

I'm a total donut when it comes to buying cars, but I'm in a position where I need to buy a company van. It will almost certainly be a used vehicle and I'd like to ensure it is totally legit.

What is the facility called, and can anyone tell me which criteria I need to be aware of when buying, so that I make sure I use the most comprehensive facility?

Thanks in advance experts,

BB

forgotmyname

AA or RAC do vehicle checks.

AdrianC

Given how relatively slow depreciation is on a used van, and how good business lease prices are on new ones, I'd be looking very carefully at the sums.

BakerBoy

Thanks to both of you. AdrianC depreciation is a real blind spot for me. Do you have the time to elaborate on why a leased van might be a better idea?

AdrianC

BakerBoy wrote: »

Thanks to both of you. AdrianC depreciation is a real blind spot for me. Do you have the time to elaborate on why a leased van might be a better idea?

Vans don't depreciate anywhere near as hard as cars, which means not only that the curve is shallower, but that it's longer. So to avoid depreciation, you need to get an older van, which implies higher running costs. Leases are not only typically much cheaper than cars, but they typically include higher mileage - which also means that a used van is likely to have a much higher mileage than a used car of the same age, as well as a higher percentage of the original value.

Your accountant will be able to give a whole raft of other reasons, including operating versus capital expenditure, tax, etc etc.

BakerBoy

AdrianC thanks for the reply. My accountant puts depreciation on my accounts every year, and it's one of those things I've never got around to trying to understand. Will chat to him about it.

Marktheshark

Are you VAT registered.

BakerBoy

Hi Mark yes I am.