7 Things You Need To Understand About Van Finance
February 23, 2017 at 4:35 PM
Whether it is a van for the family weekend — or a fleet of business vans, it is important to understand several things about van finance.
1. Financing The Van
To ensure you get low-interest rates on your van finance, only apply with a good or excellent credit rating. Get copies of the credit report and make sure that any inaccuracies are rectified before applying for van finance.
2. Beware Of That Bargain
Everyone loves getting a good bargain, but as you buy a van, it is important to look at that bargain critically. That van which is pre¬registered might seem to be the best deal, but ensure that it meets your specific capacity and load requirements.
3. Monitor Running Costs
It is not just miles per gallon for your van; miles covered between services, brake and tyre wear, maintenance costs, van longevity also affect the contribution of your van to the bottom line. Keeping good records helps you in keeping such running costs at the lowest possible levels.
4. When Leasing A Van
If you decide to lease a van, it is better to do it for between 48 and 60 months rather than 12 to 24. This is among the most effective ways of significantly reducing the amount you pay per month. Longer van leases make more financial sense.
5. Make A Higher Deposit
Particularly when leasing a van, the more funds you put down into the deposit, the cheaper will be your monthly lease cost. It is as simple as that! Of course, pay what you can afford leaving ample for your van operating costs.
6. Keep Records
It becomes quite challenging to manage that accumulating a pile of business papers at the end of the week or month compared to spending just a couple of minutes daily entering the details. As updated records are vital, if you are unable to allocate ample time, get a pro to perform the task for you.
7. Avoid Common Tax Mistakes
Many small and medium businesses typically have some complicated taxes to cope with. Without engaging a professional to help in monitoring your yearly taxes, your van business could suffer significantly due to errors and common mistakes.
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