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Why It Makes Sense To Update Your Van Or Fleet

Published on 28th Oct 2020

We've yet to meet a business owner who doesn't aim to reduce costs and monthly expenditure.

After all, every penny spent has an impact on monthly profits. 

For this reason, it can be tempting to eke out a year or two extra out of a used company van. 

But does it make sound business sense to do so?

We believe that replacing an old van that seen better days can make a positive difference to your business and despite the monthly payments, can actually save you money the long term.

Here's why:

Reduced running costs

The latest van models vans have better fuel efficiency than old models and so this means you'll reduce your monthly fuel costs - in some cases significantly.

An older van will also need regular maintenance and repairs and come with additional service / mot costs. In addition to this, the increased downtime of an unreliable van is not just inconvenient, but can be very costly. Losing multiple days of work due to breakdowns not only leaves negative impression on your customers - it hits your bottom line pretty hard if the pattern is repeated. 

Driving a new and reliable van can save you money by minimising downtime and avoiding unexpected repair bills.

Selling your old van can provide a cash injection

If you own your current used van, by choosing to sell it and lease your next van you will remove a depreciating asset from your balance sheet.

You may also release enough equity to not only fund your upfront lease payment, but also have cash available to purchase new equipment or boost immediate cash-flow. 

Improve your business image 

There's nothing worse for your business' image than driving a rusty old banger.

An impressive new van projects a professional image and gives your customers confidence. Making a positive first impression is often the difference between winning and losing new contracts and attaining new customers.

It also impacts the price you can charge for your services. If you look the part, and you're driving a new, well maintained vehicle, your customers won't be expecting a cheap and cheerful budget service.

Fo these reasons, we believe it always makes sense to lease a new van rather than trying to find a semi-reliable used model. 

Ready to explore your options? Click here.



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