Which is best for someone self-employed - buying or leasing a van?

Which is best for someone self-employed - buying or leasing a van?

Asked on 14 January 2019 by paulpeagram

Answered by Dan Powell
The decision to buy or lease a van very much depends on your personal circumstances. Most lease deals are limited to VAT-registered businesses only and will appear in your company accounts as a debt; however, it’s important to note that the vehicle will have some restrictions in regards to annual mileage and your monthly payments will increase if interest rates go up.

Buying a van is simpler in the sense there are no additional payments (unless you have taken out a loan, of course). You can also spec the van to match your business needs, but owning it leaves you liable for the depreciation and any mechanical problems that may develop if the vehicle is outside of its manufacturer warranty.

For more details and advice on buying, hiring or leasing a new van, see: vans.honestjohn.co.uk/van-news/comment/buy-hire-or.../
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