There are now more vans on Britain’s roads than ever before, with the total topping four million for the first time ever last year:
- Vans are the fastest growing traffic type (in % terms), increasing by an average of 4.8% a year over the past four years
- Just over one in 10 new vehicle registrations in 2016 were vans
- In the last 12 months van drivers have racked up 49.6 billion vehicle miles
Now accounting for a fifth of traffic on motorways and urban streets across the country, the boom in online shopping and our increasingly high expectations as to the speed with which we want our goods delivered, accounts for a high proportion of this surge.
Another factor to consider is the role of vans for the UK’s booming SME industry, which grew by 1.8% to 5.5 million in 2016.
Changes to taxation regulations and legislation aiming to rapidly decrease the number of vehicles deemed to be ‘environmentally damaging’ are making vans the more attractive transport proposition for businesses; especially the newer more ecologically sound models. If the government’s proposed scrappage scheme to get older vans (and cars) off the roads goes ahead – this is going to increase demand even more.
Every quarter another 80,000 vans take to the road.
For businesses wanting to invest in a new van or upgrade their fleet, what’s the best way to pay for this?
Not all businesses have the available capital to pay for a van or a new fleet of vans upfront (whether new, nearly new or used). Even if the cash is readily available, it might not be the most cost-effective way for the business to pay for them.
However, using a lease or hire purchase agreement as the way to fund the purchase of a new vehicle (or vehicles), could be much more beneficial for a business’s balance sheet and budgeting, with advantages including:
- Manageable monthly payments
- No large upfront expenditure
- With a lease, the VAT can be spread across the term of the contract
- Other options include balloon payments which can reduce the monthly payments even further
- A solution that’s quick, simple and flexible
Then there are the added benefits of working with a consultant lender, like Praetura Asset Finance, whose experts take the time to understand the businesses they’re helping, tailoring the arrangements accordingly. This is particularly beneficial if you’re a new business just starting out, or perhaps an established one experiencing some unusual circumstances. In cases such as these, you need that increased level of understanding to ensure you’re getting the very best deal for your business.
For more information about finance leasing or hire purchase of vans for SMEs, as your broker or financial adviser to refer you to Praetura Asset Finance today.