Many business owners question whether it is a good business decision for business to lease rather to purchase a Volkswagen van and here we look at some of the important factors we need to consider when making this decision.
There are several good reasons to lease a Volkswagen van. The reason many businesses do so is because they have discovered that it is better not to tie up capital in depreciating assets and that it can have tax advantages.
Some businesses have been reluctant to break with the tradition of owning their own vehicles, often because they have not fully understood leasing, however it is a fact that many of these business owners change their mind once they discover that they can save money, reduce overheads, do not need large up-front payments. They discover that they are freed from worries over depreciating assets and that they can simply turn their vans in at the end of the lease and take out another lease for brand new ones.
There are advantages in not having to pay interest on loans that have been used to purchase depreciating assets, and that all or most of the VAT is refundable. Depending on the type of lease, once it has expired there aretwo major options regarding the old van. These are to turn it in and take out another lease; this is typical of van contract hire; or to purchase it for its residual value by making a balloon payment.
It is important that these options are considered before taking out the lease from a company like www.thevanwarehouse.com, as if proper provisions have not been made for a balloon payment this could come as a surprise. Ideally the amount of the balloon payments should be roughly equivalent to the predicted residual value of the van at the end of the lease.
Volkswagen van leasing is the modern business model and almost two thirds of businesses operate their vans through some type of van leasing arrangement.
