How to buy a new van

In spite of the negative publicity over harmful emissions, the benefits of diesel vans are hard to ignore. Not only is a diesel van more efficient than a petrol equivalent, but it also provides more torque for moving heavy loads and towing. Take the Citroen Berlingo, for example; it’s comfortable, spacious and returns a claimed 67mpg. What’s more, its 1.6 diesel engine is packed with low gear pull that makes the van perfect for shifting one-tonne payloads.

Important:

Vehicle emissions are a hot political potato at the moment, with health groups lobbying the Government over air quality. Diesels are among the worst offenders, emitting nitrogen dioxide (NOx) and particulate matter (PM) that are linked to a wide range of health problems, including heart disease and cancer. The problem is so great that in London alone diesel emissions are linked to 10,000 premature deaths every year.

Another issue lies with a small device that's fitted to the exhaust of all new diesel vans - a diesel particulate filter (DPF). If you’re unfamiliar with the DPF then let us recap: it is a small device that sits in the tailpipe and traps harmful diesel particles (like PM) being released into the atmosphere. Once trapped, the particles are superheated and burned off during the DPF's regeneration cycle.

However, the regeneration cycle needs at least 15 miles to complete. And if it doesn't get enough miles to regenerate the DPF clogs up and eventually stops working. The costs to replace a DPF can span from a few hundred to a few thousand pounds, which means modern diesel vans are no longer suitable for those who only cover short distances. 

Petrol-powered vans have come a long way over the past few years, with many getting closer to the torque and payload ratings of their diesel counterparts, which is good news for city-based drivers who don't cover enough miles to justify a modern diesel.

For example, Ford offers both the short and long wheelbase versions of the Ford Transit Connect with the 100PS 1.0-litre EcoBoost petrol engine, while older vans for sale (built from 2014 - 2016) can also be found with the more powerful 1.6-litre EcoBoost with 150PS. The 100PS will produce 170Nm of torque and also shift up to 693kg of payload. Official economy ratings are also good, exceeding 50mpg.

Important: 

Petrol vans don’t have as much torque as a diesel, which means they can feel quite sluggish when fully laden. The running costs are also much higher and turbocharged petrol engines are known to struggle to get anywhere near their official fuel economy ratings when pulling a van that’s packed with people, tools and materials.

According to research from the Freight Transport Association, around a third of vans on the road never do more than 80 miles in a day and this makes the electric van – with a typical range of 100 miles – a viable workhorse for small businesses. As well as helping the environment, an electric van can also save money with fuel costs starting from 4p-per-mile. Servicing is also cheaper due to fact the van doesn't use a clutch, gearbox or combustion engine. And you’ll avoid a bunch of other bills too, like road tax, congestion charging and clean air zone fees.

In the UK there are more than 5000 charging points and many are ‘rapid’ chargers, capable of juicing the battery to 80 per cent from flat in 30 minutes. Most are found in cities, although there are some rapid chargers in rural towns. And there’s the good old home socket, of course, which is where most will find their power, overnight, Depending on the amp rating of the supply, charging can take between four and 12 hours.

One of the drawbacks of buying an electric van is the cost. Even a relatively small one can set you back over £20,000. That’s why the Government introduced a grant scheme, which allows builders to claim back 20 per cent of the cost of the van, up to a maximum of £8000. And that’s before you’ve spoken to your accountant about claiming any of the VAT back.

The amount of your grant will automatically be deducted from the price of the van when you buy it. The dealership will complete the paperwork, so there are no application forms for you to fill in, but you may be asked to complete a short questionnaire.

Important: 

Obviously, electric vans are not for everyone. Most have a range of around 100 miles and this is very dependent how the van is driven. As with petrol or diesel, the van’s maximum range will drop if you carry huge loads or drive it hard. On-street charging points are also in high demand - this means it can be difficult to find a space to park your van and top up its charge during the working day. 

Yes, we know it sounds obvious, but before you do anything, take some time to work out what you need from the vehicle. Do you need lots of carrying capacity and a powerful engine for towing, or will something compact and economical fit the bill?

If you need to carry specific materials, tools or equipment, work out the measurements and weights so you can ensure that the new van will meet the length, width and payload requirements. And make a note of the width between the rear wheel arches, as this will be listed separately and be narrower than the general load width.

If you need help shortlisting vehicles for your business or personal needs, try the Honest John Vans Chooser

The cost of motoring can be real drag on your profits, so it’s important not just to look at the price of the van itself, but also how much it will cost to run over the medium and long term.

If you’re funding the van with monthly payments (as do most buyers) then you’ll need to add fuel, tax and insurance to your budget. This isn’t too complicated, but requires thought and planning – and the willingness to stick to your budget.

Real MPG makes it easy to see how much fuel a van will use on the road. You can also use the MoT Files to see the pass and failure rates for every make and model of van and pick-up in the UK.

Having a van to part exchange adds a layer of complication to the buying process and while it’s important to research and know the part-exchange value of your van, you should always think about its valuation in the context of the deal. We'd recommend establishing the price (including any discounts) of the new van with the salesperson before you speak about part-exchanging your current vehicle.

A dealer may offset a high part exchange value against a smaller discount for the new van, so try to think in terms of what you’ll ultimately be paying. You can always sell privately if you don't think the dealer's offer for your existing van is good enough.

When you need a new van, there are many decisions to be made, but prime among these will be how you pay for it. The traditional route of buying the van outright with cash or a bank loan has long been supplemented with two more versatile and lower cost options - contract hire and leasing.

Which method of paying for your next van will depend to a great deal on the size of your business, usage and plans for the future. Thankfully you can compare all of the options (and the latest bank loan rates) with our cheap van finance guide, found here.

If you are financing your new van with a leasing agreement then you will be required to abide by the terms and conditions or face financial penalties. Most leasing deals feature some form of mileage limit for the period of the hire, with a surcharge of a few pence applied for every mile over the agreed figure, something which could restrict the operation of your business or add a significant cost if you exceed the agreed limit.

It's also important to understand that you will be locked into the agreement. If your circumstances change and you no longer need the van or cannot afford the monthly payments then there will be a cost involved to exit the contract early.

Never lose sight of the fact that you want a new van for the lowest possible price. Always be firm but polite with the salesperson, because their objective will be to sell for the list price and earn a healthy commission. Never be fooled by a typical “you must buy right now or the deal is off” shtick. A deal will always be available, even if they imply that it will be withdrawn at a moment’s notice. 

Don't be afraid to push for some optional extras be thrown in for free eithe. Air con, load area panelling and navigation are often included for free by eager salespeople who sense a sale is near.  

It's important to note that some new vans are advertised without VAT. And this means you may have to pay 20 per cent on top of the price you thought you originally had to pay. 

VAT paid on light commercial vehicles can only be reclaimed if your business is VAT registered. However, if the van is also used privately, the business can only reclaim the amount of VAT that’s proportional to business use. For example, a van that is in private use 50 per cent of the time, can only have half of the VAT reclaimed. VAT can also be reclaimed on leased commercial vehicles, subject to the same conditions for business use.

Is the van sold with a service agreement? Or is the salesperson offering a money-saving package, to cover future maintenance and servicing costs for the next two or three years?

There is a difference between a service and full maintenance agreement; the former only covers for the intermittent service as and when required and may not cover for other wear and tear, such as replacement brake discs or tyres.

Many van manufacturers will provide off-the-shelf factory conversions. This means you can get a Luton, tipper, dropside or low loader direct from the van dealer.

Of course, if you do not want a factory-fitted conversion then you can simply order a basic chassis cab and arrange for a custom body to be fitted by a third-party. Most van manufacturers will have a list of approved converters who can work on the vehicle without invalidating its manufacturer-backed warranty. 

We know it’s a cliché, but always read the small print. These are the terms and conditions you are legally bound to for buying the vehicle and it isn’t unknown for hidden costs – delivery, registration, fuel – to be added here.

Make sure any extras or discounts promised by the salesperson are included in the documentation, otherwise you’ll have a hard task to prove their inclusion at a later date. Likewise, if you are paying for the van via finance, make sure the monthly payments and fees are listed and as agreed. If you're not happy with anything listed in the small print - or the monthly payments are different - then don't sign.