Should I purchase a used van or a new vehicle?
August 28, 2015 at 2:09 PM
For many companies, the van is an essential asset in order to achieve full productivity, without which income and profits would be seriously affected.
If you’re a sole trader or small business, you’ll know that your day-to-day operations rely on having a reliable vehicle at your disposal. When it comes to purchasing a replacement van for your business, you face a simple choice: to purchase a brand new vehicle from a main dealer or to opt for a high quality used van from a reliable supplier such as Capels Van Centre. Buying brand new can be expensive and potentially beyond your means if you don’t have the available funds. A used vehicle may be cheaper but you need certainty that you’re purchasing a reliable van that won't let you down on a cold winter’s morning.
Is buying a new van right for my business?
While the dealers will be only too keen to highlight all the benefits of purchasing a brand new van, it’s worth giving careful consideration to whether your business can withstand the financial pressure of doing so.
The key issue is likely to be one of cost. Like most new vehicles, a new van will lose a considerable percentage of its value in the first 12 months, giving you a much lower trade-in value when you come to replace it. If your capital is limited, you may feel you can’t withstand this level of loss.
Due to the higher cost of a brand new van, you’ll also need to have the capital available to complete the purchase or accept entering into a loan agreement – neither of which may suit your business’ financial situation, immediately or in the long term.
Benefits of buying a used van
By purchasing a used van, you can often secure the same model as a new vehicle for a much more competitive price, meaning you won’t need to stretch your finances as far. The savings could be used to purchase a van with a higher specification that meets your businesses needs more effectively.
A used van can also be more cost-effective if you plan to trade it in within a couple of years, as it won’t suffer from high depreciation in the same way that a brand new vehicle would initially do so. With a loss of up to 45% of value in the first 12 months, you can easily pick up a great deal on a nearly new van instead.
Furthermore, a used van can be as reliable as a brand new vehicle if obtained from a reputable seller. A nearly new van will have the balance of the manufacturer’s warranty remaining, while an older vehicle will be supplied with a short-term warranty to ensure that you are fully protected from unforeseen problems.
Purchasing a used van is, therefore, for many businesses, a logical solution to their need to replace an existing vehicle. Browsing the range at Capels today should be your first step to identifying the vehicle that you need to run your business effectively.
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