Self employed -New van - Lease or buy ?

Bigted_3

Hi, could any one tell me if in general it makes sense to buy a new van or to lease one.

Do the advantages/dis-advantages say go one way or the other and are there any hidden drawbacks to leasing.

Thanks

Bigted

fingerpost

IMHO it pays to buy second hand!
I have a small ltd company, and one 3 year old van.
I looked quite hard at the figures for lease hire, lease purchase and straightforward purchase. In the end the depreciation on a new vehicle, coupled with the fact that there was no difference as far as the tax man is concerned, made my decision for me. Uncertainty ruled out lease in all its forms, which to my mind are quite expensive when it comes to the end payment.
So I am the proud owner of a late model, low mileage VW Transporter. It sailed through its 1st MOT test and I reclaimed the vat.
The only downside is you need the money in your account to buy. I had a van loan the first time and was not impressed when I paid off early, yet still had to pay the interest for the full term.

Pew_Pew_Pew_Lasers!

No sense in buying a new van for a small business (apologies if you're not small).

Get a good second hand one. Its a working vehicle and you should view it purely as a tool to earn money, nothing more.

Are you VAT registered?

wallacebob

Got to fully agree with what has been already said, get a good 1-2 year old and look after it. Saved 1/3 of price on last vehicle - 10k miles and private owner. I do 35k/year so need something decent, but never have considered new.
A clean, tidy, older van says something about you; a dirty bashed new one says something else!
After 3 years the van won't owe you anything and you might get some money second hand as a bonus.
Shame Skoda don't do commercials anymore! Fabia or Octavia van would be superb second hand buys.