Sprinter and commercial vans are becoming more popular, but does it make a difference to lease or buy a commercial van?
You can answer that question by weighing some of the benefits of leasing vs. buying. Here is what you need to know to come to the best conclusion for your business.
5 Benefits of Leasing a Commercial Van
First, let’s talk about leasing. Generally, leasing is a good option for companies that plan on something other than needing a van long-term or that like to keep new vans in their fleet.
Here are five potential benefits of leasing a van.
Lower upfront costs
Leasing a van often requires a smaller initial investment compared to buying since you are only paying for the use of the vehicle rather than the entire purchase price. This can be particularly beneficial for businesses needing more capital to make a large upfront purchase.
With a lease, you can choose the length of the agreement and the terms that work best for your business. This allows you to select a van that fits your current needs rather than being tied to a long-term commitment or forced to sell a vehicle before it has reached the end of its useful life.
Leasing a van can help businesses better predict and control their monthly expenses since the payments are typically fixed over the term of the lease. This can make it easier to budget and plan for the future.
The ability to try out different models
Leasing a van allows you to try different models and see which works best for your business without committing to a long-term purchase. This can be particularly useful if you are still determining what type of van your business needs or if you want to test out a new model before investing more.
Easier to upgrade to newer models
Leasing a van allows you to regularly upgrade to newer models without worrying about selling the old one. This can be especially useful for businesses that want to stay current with the latest technology and features or those that rely on the van for a critical part of their operations and need a reliable vehicle at all times.
With a lease, you can return the old van and lease a newer model when the lease term is up rather than selling the old van and buying a new one. This can save time and hassle and allow you to take advantage of the latest advancements in van technology.
Maintenance and repair coverage
Many leases include maintenance and repair coverage, which can help businesses save money on upkeep and reduce the risk of unexpected repair costs. This can be especially helpful for small businesses needing more resources to handle major repairs independently.
5 Benefits of Buying a Commercial Van
Leasing a commercial van may not be a perfect fit for your business. Although many companies could benefit from leasing a commercial van, purchasing one may be the wiser choice to suit individual needs.
Here are some main reasons you should consider buying a commercial van.
When you buy a van, you own it outright and have the freedom to do with it as you please. Your van is yours, and you don’t need to return it to the leaseholder in a like-new condition after a couple of years.
Long-term cost savings
Buying a van may have a higher upfront cost, but it can save you money in the long run. As you pay off the loan, the van becomes an asset that you own rather than a liability that you are paying for on a monthly basis. This can be particularly beneficial for businesses that plan to use the van for an extended period of time.
No mileage restrictions
Leases often come with mileage restrictions, which can be frustrating if you plan to use the van frequently. However, you can drive as much as you want when you buy a van without incurring additional charges.
Ability to sell the van
If your business no longer needs the van or wants to upgrade to a newer model, you can sell the van to recoup some of your investment. This can be more difficult with a leased van, as you don’t actually own the vehicle and can only sell it if you break the lease.
Potential for tax deductions
If you use the van for business purposes, you can claim tax deductions for the vehicle’s depreciation and any interest paid on the loan. This can help offset the cost of owning the van and potentially save you money on your taxes.
Ability to Customize
One of the main benefits of purchasing a commercial van is the ability to customize it to fit your specific business needs.
When you own the van outright, you can make modifications and add features that will help you work more efficiently and effectively. This could include installing shelving or storage racks to organize tools and equipment, adding a ladder rack for easy access to tall items, or installing a custom paint job to promote your brand.
By customizing the van to fit your business’s specific needs, you can optimize its performance and get the most value out of your investment.
Things to Consider When Deciding Leasing vs. Buying
So, is leasing or buying better for your business? That answer is subjective. Different businesses have different needs. Here are some things to consider about your own business before you commit to buying or leasing.
The first thing to consider is what the van will be used for and how long it will be needed. If the van is only required for a short amount of time or for a specific project, leasing may be the more cost-effective option. However, if the van is a critical part of your business’s operations and will be needed for a longer period of time, buying may be the better choice.
Another important factor to consider is your budget, whether you have the financial resources to make a large upfront purchase or if you prefer to make smaller monthly payments. For example, leasing may be more appealing if you don’t have a lot of capital available and need to conserve cash, while buying may be a better choice if you have the funds available and are looking for long-term cost savings.
Maintenance and repair costs
It’s also important to consider the van’s potential maintenance and repair costs over time. If you lease the van, these costs may be covered under the lease agreement, which can save you money.
However, if you buy the van, you will be responsible for all maintenance and repair costs. This may be something to consider if you are concerned about unexpected repair expenses or need more resources to handle repairs independently.
Sprinter Van Customization
Another thing to consider when deciding between leasing and buying a commercial van is whether you need custom modifications. Depending on the nature of your business, you may need to make specific modifications to the van to make it more suitable for your needs.
If you lease a van, you may not be able to make these modifications, as you don’t own the vehicle and are bound by the terms of the lease agreement.
Some leases may allow for minor modifications, but major modifications may not be permitted. This can be a drawback if you rely on custom modifications to make the van more effective for your business.
If you buy a van, you have the freedom to make any necessary modifications to suit your business’s needs. This can be a significant advantage if custom modifications are critical to your operations and you need the flexibility to make necessary changes.
Warner Vans — Here to Help
We have the right inventory for you if you’re considering leasing or buying a Mercedes-Benz Sprinter van for your business.
Our team of experts is ready to help you explore your options and find the perfect van to meet your needs. Whether you’re looking for a short-term lease or a long-term purchase, we have a wide range of vehicles to choose from, including the latest models of the Mercedes-Benz Sprinter.
Contact us today to learn more and take the first step toward finding the perfect van for your business. We look forward to helping you find the right solution for your needs!