The cost of van ownership and maintenance – is van hire a solution?
Owning a business van has its benefits. Primarily, it gives you freedom. You can drive it wherever you want, whenever you want, clock up as many miles as you like, modify its appearance. It’s your vehicle to use however you wish.
But there’s one major downside… it can be expensive.
Not only are vans expensive to buy outright, the cost of regular upkeep can also add up – particularly if you need more than one vehicle. Here we take a closer look at some of the costs associated with van maintenance and explore how business van hire could help to minimise your expenditure.
5 costs associated with owning a van
This one goes without saying. Van insurance is essential. In most cases, a business policy will be required, and you’ll need to think about additional covers – such as ‘Carriage of own goods’ or ‘Carriage of goods for hire and reward’ (e.g. if you’re a courier).
The cost can vary greatly depending on the vehicle’s age, value, and its contents. Therefore, before you buy a particular vehicle, be sure to do a little research into how much it will cost to insure. If the predicted insurance premium is high, it may be worth re-considering your options.
2. MOT and servicing
If you’re using a van for business purposes, reliability is crucial – and you’ll need to invest both time and money to ensure it continues to run smoothly. Legally, vehicles over three years old require a yearly MOT. You’ll also need to service the van every 1-2 years, depending on the manufacturer’s recommendations and mileage covered.
3. Road tax
Formally known as Vehicle Excise Duty (VED), road tax is one of the biggest van maintenance costs.
For a light goods vehicle that weighs up to 3500kg, you’ll be charged a flat rate of £275 per year. If the vehicle is used for private journeys – and isn’t solely for business purposes – you may also be expected to pay benefit-in-kind (BIK) tax. This is calculated based on the vehicle’s CO2 emissions, its retail price, and your personal tax percentage.
4. Breakdown cover
A breakdown can significantly disrupt your day-to-day business operations. Not only is it a huge inconvenience, getting your vehicle back up and running can be expensive – which is why, to be on the safe side, it’s usually worth investing in breakdown cover.
Various levels of cover are available depending on your needs. But if you use your van for work, it’s usually worth investing in a comprehensive package – including roadside assistance, towing and transport, and garage repairs.
5. Repairs and replacements
Business vans tend to suffer a lot of wear and tear. Regular MOTs and servicing can help to prevent the development of significant (and expensive!) issues. But from time to time, the tyres will still need to be replaced – particularly if you’re driving long distances and the tread has deteriorated.
You’ll also need to pay for any replacement parts, as and when they’re required. Brand new vehicles sometimes come with a warranty to cover these. But availability of parts can lead to costly delays for your company, especially if the workshop is located far away.
Could hiring a van be the cheaper option?
Owning a business van can be expensive, particularly if it’s a second-hand vehicle or if you manage a large fleet. There are lots of hidden van maintenance costs to consider. And if you’re looking for a way to limit your company expenditure, hiring (rather than buying) could be the ideal solution.
Here at PSD Vehicle Rental, we offer long-term van hire in St Helens, Warrington, and the surrounding areas. These are available for 6-12 months or more. You can choose either one vehicle or several from our regularly updated fleet. And for a fixed monthly cost, you’ll receive:
- – a high-specification vehicle, with the latest technology and safety features
- – a bespoke mileage limit to suit your day-to-day needs
- – regular vehicle maintenance, including an annual MOT and servicing
- – repairs and replacements
- – complimentary 24-hour breakdown cover and recovery, windscreen, and tyre service
Road tax will also be paid by us and, if you’re a VAT registered company, you can reclaim VAT.
Whether you’re just starting up your own business, or are looking for ways to cut costs following the pandemic, business van hire is a smart way to use your money – avoiding the costs associated with regular van maintenance and keeping your outlays to a minimum.
To find out more about long-term van rental and its many benefits, you’re welcome to contact us at any time. Either give us a call on 0345 222 1022 to chat with a member of the team, or send an email to email@example.com and we’ll respond to your enquiry as soon as possible.