Do you want to start a delivery company? Well, one of the most important elements you should consider is whether you will buy or lease your delivery vans. By buying delivery vans, you add value to the fixed assets of your firm. You can sell or trade them in with other assets at any time. However, the purchase also comes with a host of other associated expenses. A good example is the recurrent expenditure of maintaining the vans. On the other hand, a leasehold agreement allows you to use the delivery vans for a certain period without having to deal with so many liabilities. The following are some of the reasons you should lease your delivery vans:
More Efficiency and Improved Van Design
With leasing, you can enjoy using new vans after a few years of the lease agreement. You have the added advantage of using the delivery vans when they are most efficient, which is key to a start-up business that needs to run and generate income fast. Once the lease term is over, you return the vans and opt for new models. This gives you a first-hand experience to better designs and other vehicle attributes such as fuel efficiency. This is unlike buying the vans and having to make the most of them within their useful life. If you need an improved version of the vans, you're limited to buying or trading in with new ones (a more costly option).
Cost Effective Alternative
Leasing courier vans will save you a lot of money that you would have otherwise used to maintain the vans. Besides that, you also have to insure the vans and pay insurance premiums. If you have a large fleet, these premiums will be quite costly especially in cases where you apply for comprehensive insurance cover. In some cases, service providers cover maintenance and breakdown costs, helping you reduce expenses even further when you lease the vans. You should also note that the vans depreciate and lose value over the years, meaning that they will have a low resale value. In brief, leasing is a cost effective option that helps you reduce many expenses in the early stages of your business.
Some lease agents will offer you a lease purchase option. Here, you can use the vans for a certain period and then buy them upon the expiry of that period. This is good when starting the courier business because you will reduce your start-up costs significantly.Share