anyone lease hire their van

[sawdust1]

I'm fed up with buying second hand vans that after a year things drop off or things go wrong. A friend suggested lease hire, i don't know anything about how it works. Anyone out their who does it this way, pro's and cons please and prices for a transit size van, thanks.

 

[MMUK]

I used to lease but found that every time I was stung on handover at the end, usually for stupid things like the service was a week after the due date or the tyres were not far off minimum tread (like I'm going to fit £500 of tyres on a van I'm handing back?) A lot of lease companies are sharks and will do anything they can to squeeze more money out of you. Apart from which, with deposit, lease costs could have bought you the van but you end up owning nothing. Now I just take my time looking at second hand vans.

A few weeks ago I picked up a Renault Master with full dealer history, 51 plate SM33, 114k on the clock. It was advertised at £1800 and I got it for £1000 as it needed new boots (which cost me £280 for Bridgestones) and will soon need the box reconditioned. Apart from that it just needs the glow plugs replacing (doing that today with an oil and filters change). It's straight and clean with only a couple of pin pricks of rust. I must have looked at fifteen vans before deciding on this one.

 

[Graham Orm]

I bought new from Peugeot. Disaster! I thought it was a finance agreement, turned out they owned the van at the end, I was completely conned. At the end of the agreement the guy had retired (****). I had to jump through hoops to own it. I took advice and it turned out to be an obscure lease purchase deal where I had to pay a set amount yearly, equal to my previous monthly payments to keep the van on my drive but I never owned it. Eventually I did a deal and a one off payment secured it. Add to this the worse than abysmal Peugeot finance office who weren't remotely interested and passed me from pillar to post.
On top of that the van went back for electrical problems 15 times in the first year (brand new remember!!!). The best they could offer when I asked for a refund was to exchange it for a similar age vehicle from their national stock. As mine was already sign written and racked out I saw no point. It's 6 years old now and I've had no real problems with it since the first year.......Oh wait, there was the time it went in for a recall to replace the spare wheel carrier and they cut through my tow bar wiring and folded it neatly out of sight!!! I wouldn't go back to Peugeot for anything.

 

[Graham Orm]

Regarding lease hire, I think you'll find it only works in your favour if you have decent profits to off-set the payments against for tax purposes. Straight forward HP is far better for sole traders I think. At least you have something to sell at the end. As the other poster said, you don't know what hurdles they will put in front of you at handback time.

 

[MMUK]

Also, if you're set on something "new", don't buy brand new. Look at ex-demo and 12 month old vans. Less than half the price and you won't lose nearly as much on depreciation.

 

[Graham Orm]

Also, if you're set on something "new", don't buy brand new. Look at ex-demo and 12 month old vans. Less than half the price and you won't lose nearly as much on depreciation.

+1

 

[doctor Bob]

Leased 2 and then bought 2 new ones.

We found through negotiation we could buy a brand new one as cheap as a second hand year old one.

Buying is by far and away the most cost effective.

 

[tsb]

Do you think it makes a difference to customers if you turn up in an old van compared to a brand new one?
I was always brought up with the attitude of " if you can't afford it, don't buy it", so have always had secondhand vans. The latest one I've had 7years, bought for £2000, cost next to nothing over the years, regarding maintenance but probably time to change for a fresh one. The guy I work with, on some jobs, always changes his van every 3years on finance, will never own a van, and over the same 7years have spent over 20k+ so personally, I will stick with my secondhand vans.
PS Anyone selling a van in the New Year? :wink:

 

[doctor Bob]

Depends what you are trying to sell.
I do high end bespoke kitchens, an old van would project the wrong image.
I have 2 identical sign written vans, both bought new.

 

[Graham Orm]

It all depends on your customers. I try and project professionalism which starts with turning up in a clean, sign written van. Once you get a good new one you don't have to change it every 3 years. Just look after it. They still sell the model that mine is so with a private plate it could be nearly new for all the customer knows.

 

[MMUK]

An older van can look just as good, if not better than a new one. My 12 year old Master for example, is cleaner to look at than most "new" vans I see around the North West. Plus, the Master hasn't aged style wise like the equivalent Transhit for instance, it still looks modern and professional

 

[sawdust1]

Thanks for the replies, i will stay with buying then ! To tsb i will be selling my vivaro after xmas , not a lot wrong with it now i've replaced most things, if your interested give it a miss as its s**t. I don't seem to find the good ones, i does not help living down a 1/2 mile track full of pot holes and mud and having them parked up in a damp wood.

 

[Water-Mark]

I spent some time asking my customers about vans and image etc and the majority couldn't tell me what colour my van was, let alone how old.
I think as long as it's clean and well presented (please don't look at mine) most people couldn't care.

Obviously if you're selling high end good in affluent areas then new is going to look better, but some of the areas I work in people would think you're over charging if you had a nice new van every three years.

 

[markturner]

One big advantage of leasing is that you can offset all the costs as an expense. Buying, you get a diminishing percentage allowable to offset. The sweet spot is a nearly new van, as has been said, on hire purchase. I usually financed all my vehicles and changed them every three years. There was usually a few grand surplus you can plow into the next deposit and after 3 changes, you are getting a nice lump. I would rather spend money on a nice van that wont let you down, instead of not spending that money and paying tax on it. The beauty of being self employed......