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Choosing the right van for your circumstances can be a hard decision. If you’ve just started a new business or your business is expanding, there are many reasons why you may be in the market for a new van.
Whatever your situation, choosing the right van is crucial. There are a few requirements that you need to think about first before making an informed decision. You should consider how much you can pay for a van and how you will pay and also how often you’ll use your van and what for.
Let’s explore how to choose the right van for your business.
Work out your budget
Before you commit to buying anything with cash or van finance, you will need a budget to stick to. Your budget should be realistic and affordable and shouldn’t leave you out of pocket. Your budget can vary by how you want to pay for your vehicle and whether you will choose new or used.
Whether you’re using savings or opting to finance or lease, you should also consider the cost of maintaining and running a vehicle too. Shop around for van insurance deals, rate of depreciation and check the road tax for your chosen vehicle.
Size and capacity
When looking for a new van, you will probably already know how much space you need for all your work materials or equipment. Commercial vans are specially designed to carry heavy loads and individual vans can support different payloads. Payload is really important when choosing a van and you can even be fined if you exceed the payload.
The payload of a van is the total weight of your load plus the weight of any passengers and driver. An overloaded vehicle payload can depend on how overloaded the vehicle is but can start from a fine of £100 up and escalate to a court summons.
Distance and location
Depending on where you work and how often you will be driving a van, it can determine which type of van is right for you. Regularly driving short trips around city centres can put different demands on the van you want when compared to motorway driving. If you only carry small loads over short distances, it can be worth investing in a smaller more economical vehicle.
Travelling many miles per day may mean you could be more suited to diesel vans. Location such as city centre can also determine which kind of access you need. You may consider loading doors on each side if you need to unload at the roadside.
Running costs
For any type of vehicle, running costs are important. Your running cost can vary from make and model and to how much you use your van. Fuel consumption can make a massive difference to your payments, and you should try to choose a van with the lowest fuel consumption possible.
If you want to save on running costs and don’t travel long distances, you could consider a hybrid or even a fully electric van! You can find average prices for things such as maintenance parts and fuel through a quick online search before you start shopping around.
Buying options
Paying for your next van in cash can be the most straightforward way to purchase a vehicle. However, many businesses don’t have that kind of money to hand. Alternatively, you could use some of your savings for a car finance deposit. Van finance allows you to spread the cost of getting your next vehicle into affordable monthly payments. PCP finance can be a great choice for a sole treader to fund a van.
It typically has low monthly payments, and you don’t have to own the van at the end of the agreement however, there are mileage and damage charges that can apply. Hire purchase is one of the most popular ways to finance a van as it spreads the costs of the whole vehicle This means once the final payment has been made, the van is yours to keep. You may receive a better finance rate with a good credit score, deposit contribution and low credit utilisation rate.
