Company vehicles represent a significant outlay for a business. For those who choose to purchase a van, a used vehicle can be a more cost-effective choice; for example, businesses in Gloucestershire may look for used vans for sale in Tewkesbury. Another option is to lease a vehicle, but can you customise a leased van?
Downsides of leasing a vehicle
While leasing a vehicle is a cheaper option, it does have drawbacks. You may want to make modifications to the van or display company branding; fortunately, customising a leased vehicle is not impossible. There are some ways businesses in Gloucestershire can customise a leased vehicle, although for others it will be more suitable to find used vans for sale Tewkesbury.
Three ways to customise a leased van
1. Removable interior modifications
Making permanent modifications is usually not permitted, but there are interior modifications that can easily be removed without damage. These can include temporary partitions, racking, shelving, or seat covers.
2. Vinyl wraps and decals
Vinyl wraps and decals are a good way to apply branding to the exterior of a company vehicle. It is possible to apply these wraps yourself using advice from Auto Express. As long as you use adhesive designed for temporary application, this is usually permitted on leased vehicles.
3. Magnetic signs
Magnetic signs are even easier to remove. Using your company logo or information on a magnetic sign will allow you to use the same sign on different vehicles or to easily remove the sign if you are using the vehicle for personal use when you do not want to display the branding.
Leasing or owning?
If the above modifications are enough, leasing a vehicle may be the right option. This allows you to have a new van without the expense that comes with a purchase; however, if you want to make more extensive or permanent modifications, you will probably need to purchase a vehicle. If this is the case look for used vans for sale Tewkesbury from a reputable company so that you can be confident your vehicle will be both cost-effective and high-quality.
Keeping working vans on the road
Whether a van is leased, bought or customised, a business that depends on it needs to look after it well. Regular checks and proper maintenance help vans last longer and catch problems early, when a simple repair is usually all that is needed.
A daily vehicle checklist for every employee who drives a van is a practical way to do this. Everyone knows what to look at first thing in the morning, and the completed sheets create a record of reported defects that can be passed to the garage when repairs are due.
Plan ahead for time off the road, such as servicing and MOT tests, and consider how you will cover unexpected gaps after a breakdown or accident. Short term hire can fill those gaps, and breakdown cover means a vehicle can be recovered quickly. For businesses that only need a van occasionally, hiring when required can work out cheaper than owning, because maintenance is no longer your responsibility.
Why businesses choose to lease vehicles
Leasing has become a popular way for businesses to run vehicles because it is cost effective and flexible. Upfront costs are usually lower than buying outright, so instead of a large capital outlay the business makes smaller fixed monthly payments. That makes budgeting simpler, since managers know exactly what vehicles will cost each month.
Depreciation is not a concern, because the business does not own the vehicle and hands it back at the end of the agreement. There is no need to sell an old vehicle either, which can be a slow and awkward process. In many countries, part of the lease payments can also be claimed as a business expense.
Leasing can put higher end vehicles within reach, and leased vehicles are often new and well maintained. A smart, modern fleet helps a business look professional, which matters most for firms that visit clients or work face to face with customers.
The tax side of leasing a van
Leasing can be an efficient choice for a business from a tax point of view, which is worth weighing up alongside any plans to customise the vehicle. A VAT-registered business can usually reclaim all of the VAT paid on the lease rental and all of the VAT on maintenance costs.
To stay on top of its obligations, the business should keep monthly mileage records for each van. These should show which journeys were for work and which were personal, and whether the company paid for fuel used on personal trips.
For drivers the position depends on whether they are sole traders or employees. An employee who uses a van leased by their employer for personal journeys may have to pay Benefit in Kind tax, often called company van tax. This applies to perks received on top of a contracted salary, so it covers private use rather than driving the van as part of the job. Check the current rate with HMRC before you budget for it.