When buying a new vehicle whether for personal or business use, most individuals and companies primarily consider their budget. Since a vehicle purchase does not come cheap, many of them need to secure a loan. Some also go for more practical choices, such as used Freightliner Sprinter vans for sale in Utah.
But if you want even more lower-cost options, there are various models that are up for contract hire and leasing. So, what should you do? Buy or rent? Here are the benefits and drawbacks of the two options.
Outright Purchasing: Pros and Cons
The tried and tested route of buying a Sprinter outright has its benefits. This is especially true for businesses and traders where the van is their most important business asset. One of its key advantages is that there will be no additional outgoing payment over the fixed cost of repaying for the loan to buy it. Running the budget over time is easy. New Sprinter vans also come with full manufacturer warranty to guard it against any problem.
Moreover, buying a van allows you to do whatever you want with it without any restrictions. You can run it for high mileage, and you will not face additional service costs except for the fuel consumed. You can also customize it to suit your style and preferences.
On the financial side, owning a Sprinter means that you can only offset the capital allowances against tax if you will use it for business purposes. Vans purchased through bank loans will also have interest charges that you must pay on time.
Since you are the owner, you are also the one responsible for all the elements in its upkeep. If it will run for high mileage, there will be the cost of maintenance and repairs to prepare with along with insurances, road tax and other maintenance costs for the tires, clutches, oil, among others.
Renting: Pros and Cons
Other van users, meanwhile, prefer to hire or lease a van instead of buying them. When hiring a van, it is not the same as hiring it for a few days. There will be a contract agreement, which can go from 24 months to 60 months, depending on how long you will use it and the type of mileage you will cover.
The key benefits of renting vans are that they give users a fixed monthly cost for easy budgeting and they take away the costs of the vehicle from the company’s assets. This also frees up vital capital, as it only requires initial outlay to start the contract. Most companies that rent Sprinter vans sell their vehicle at the end of the contract to get more out of the van costs.
Renting out a Sprinter also means that there is less worry about fleet management because the owners will be the one responsible for this. If your business needs more vans, it is easy to increase or decrease the number of vehicles you need according to your contract. This is preferred by most businesses as they can use more vehicles on the price of buying one vehicle to own.