A cost-effective way of having a new company van would be to take it on a lease or contract hire basis, all you need to do is take out fully comprehensive van insurance and off you go!
Lots of businesses now choose this option as it avoids a huge outlay of working capital to pay for a new van outright and the monthly rental can be significantly cheaper than choosing hire purchase. You can usually choose a maintained package which will cover road tax and servicing. You will find that most leasing companies will also offer you a quote for van insurance but, as with most things, it pays to shop around as they are not always the most competitive.
Leasing a van as opposed to buying one also has the added benefit that at the end of your agreed term you can hand the van back and get a nice, shiny new one on a new term. However, if you hire purchase a van then when you want to replace it you may need to think about clearing off any existing finance and negotiating a good trade-in price.
At the end of a contract hire agreement, most people do return the vehicle and replace it with a new one. The down-side to this is that you will always be paying for a van. If however, you have looked after the van and are quite happy to keep it, very often the dealership the van was ordered via will be able to offer you a very attractive price to buy the it outright.
In summary, check out what is right for you and your business, should it be hire purchase or contract hire and always shop around for your van insurance. Don’t assume that whoever sells you the best van deal will automatically sell you the best van insurance deal.
By Robert Watson