Van Leasing

[m4tty]

Hi,

Im currently in the process of going through the Princes Trust to obtain fndng to start up my own business.

I was originally going to purchase a second hand van from Auction but have been told that I have to look a leasing a van for 6 months before they will approve funding for the 2nd hand van.

I dont know anything about leasing so if anyone can give me any pointers it would be appreciated.

How many of you lot own your own van and how many lease and what are the good/bad points to both.

I know some people are going to say use your personal car until you have enough money in the business to purchase one outright but my

 

[binky]

Ultimately anything leased costs more, but if you get a good contract it should cover all maintenance etc etc. The other reason for leasing is to avoid outlaying capitol, for example the 2nd hand Vito I just bought cost me

 

[PC Electrics]

I'm sure they don't actually mean that you have to lease a van for the first 6 months. I'm sure what they mean is that they won't approve funding for a van until you have been in business for 6 months and how you provide yourself with transport is up to you.

I wouldn't have thought you could get a 6 month lease, so you'd be looking at hiring. This would cost about

 

[androiduk2002]

You will find that alot of the smaller spot hire companys will do short term leasing dependant on the contract (please read very carefully) leasing can be a good option with very little extra outlay for repairs or the like (again read contract carefully) also should the van breakdown some contracts mean you have to be supplied with a temp van free of charge. Its the same in some ways as insurance you want all the extras you have to pay for them.

 

[Lurch]

FWIW if you're looking at buying a decent van in 6 Months just buy a cheap one now and sell or trade it in then. I bought a 51 plate 60k Partner for

 

[Blue Duck]

I'd go with what lurch says,

It would be cheaper & a lot less hasle to buy a cheap van at auction rather than a lease, Unless there is a way of claiming a good % of the lease costs back?

Also there is the hasle of contract's late payment fee's n all that kind of malarky!

Go for a cheap van, jus make sure its not one of these:

 

[PC Electrics]

Rather than an old van for the first 6 months, how about offloading your Calibra and getting an old estate car? That way if you still need a car you aren't running two vehicles, which will help keep your overheads lower.

I'd suggest an Omega or Volvo - both capacious and great workhorses, but low on image so old good ones are cheap as chips.

 

[androidlee]

what route did you go in the end matty?

i'm wanting a new car and concidered lease

 

[m4tty]

I got a 2nd hand ford transit 260 swb from a mate on an 05 plate for

 

[androidlee]

no help from the trust in the end?

 

[m4tty]

Yeah mate I set up through the princes trust and can say it is one of the best things I've ever done. If you need any info just ask. I'll do a proper post on my story later on (heavy night )as the princes trust have set me up with a business mentor and he's managing director/owner of a multi million pound turnover company called durtnells. I have meeting with him and go through my books and he looks at marketing/advertising and anything really. He's also set me up a few contacts in the trade. I can highly rrecommend going through the princes trust if your under 30 years old. They send you on a business enterprise course all expenses paid and teach you about tax and they have accountants on the course to show you how to do your own books. The course was good and the loan in nearly interest free which helps. If you or anyone wants any contact information for the trust then pm me and I'll forward the info. Cheers

 

[androidlee]

sounds real good matty. made up for ya.

hmmmm under 30 lol . once

 

[alpha spark]

Hi Matty could you forward me info through about princess trust please thanks

 

[m4tty]

I'll do a post later on tonight with all the info in

 

[Ash]

you get 100% tax back from leasing.

Factor that into your decision.

 

[betty swollocks]

When I set up on my own I bought a cheap van which looking back was a mistake, i did have some bad luck with it

I paid

 

[Evans Electric]

I'd go with what lurch says, It would be cheaper & a lot less hasle to buy a cheap van at auction rather than a lease, Unless there is a way of claiming a good % of the lease costs back?

Also there is the hasle of contract's late payment fee's n all that kind of malarky!

Go for a cheap van, jus make sure its not one of these:

Matty , I know nothing about Van Leasing ( thought he was one of those Vampire hunters) however I second what the Blue Duck has said, DO NOT EVEN THINK ABOUT THE THING HE HAS PICTURED (Bedford Rascal) A mate and his wife were in a head on in one of those , they survived but with horrific injuries.

 

[Sidewinder]

FWIW, I'm about to take delivery of a Transit Jumbo on 4yr lease.

Only way I can get a van, long story.

Will be my 3rd lease vehicle, bit of a trick, as 2nd is a replacement after engine blew up on 1st!

However, Ltd. Co. VAT Reg'd.

 

[Cirrus]

I worked as a corporate leasing manager for years before turning my hand to electrics (why did I bother!?). There are various forms of leasing available to you such as contract hire, personal contract hire, personal contract purchase, lease purchase etc etc. Some leases favour some businesses more than others and contract hire works particularly well for limited companies which are vat registered. My advice, speak to a professional advisor who can advise based upon the specifics of your business.

Now, my tuppence worth - gaining credit as a new business is very hard. I have a limited co, decent turnover with 58% gross profit last year, don't owe anyone any money, have loads in the co acct - you get the picture, but Nat West still refuse to lend to me as the company is less than 3 years old. Catch 22 I'm afraid. Now, as a business which is less than 2 years old my advice is this - only borrow if absolutely no other option. Best not to owe anyone anything and getting into lease contracts is a long term commitment that you will not get out of if it goes pear shaped. Try and run your business from the ground up - in other words, improve and buy as and when the profit is there. Some people take out huge loans, remortgaging the house etc to start up their new electrical business only to end up bust in the first 12 months. Slowly slowly catchy monkey is the key, building steadily. Rome wasn't built in a day and a good business has to be founded on grounded principles and sound business sense.

Good luck whatever you decide!