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When choosing a new van, many people simply look at the upfront cost of buying or leasing the vehicle before making a decision. However, there are countless other cost-related factors to consider, such as petrol, insurance, maintenance and more.
In order to find the best van for your needs and budget, it’s important to take into account any potential hidden costs before signing on the dotted line. This blog will take you through some of the main financial considerations you should make when choosing your next commercial vehicle.
Upfront Cost
If you’re buying the van upfront, the initial payment will probably account for the vast majority of your van costs. However, if you’re intending to buy your van on finance or lease it, you’ll need to consider how the total cost will be spread out across the lease or payment period, as well as any additional monthly expenses (some of which we have listed below). By doing this, you should be able to gain a better idea of the overall cost of your new van.
To get a fairly accurate cost estimate, we recommend working out the cost of running the vehicle over several years rather than just one. This allows you to take into account any potential hidden costs, rather than solely focusing on the initial purchase price.
Additional Financial Considerations
Whatever you will be using your van for, it’s important to make sure you understand the cost of running a van, as well as the cost of buying one. The main additional financial considerations, on top of the initial purchase price, include:
Insurance: Van insurance tends to be more expensive than regular car insurance. Factors such as the van’s size, model, and usage can influence the insurance premium. It’s crucial to obtain quotes from multiple insurance providers and factor in this cost when budgeting for your van.
Fuel Expenses: Vans generally have larger engines and lower fuel efficiency compared to cars. As a result, fuel costs can be higher. Consider the mileage of the van and estimate your average fuel consumption to get an idea of the ongoing fuel expenses.
Maintenance and Repairs: Vans are subject to wear and tear, especially if they are used for commercial purposes or heavy loads. Regular maintenance, including oil changes, tire rotations, and brake inspections, is essential. Additionally, unexpected repairs can arise, such as engine or transmission issues, which can be costly. Budget for these maintenance and repair expenses accordingly.
Vehicle Taxes and Licensing: Depending on your location, there may be annual taxes or licensing fees associated with owning and operating a van. These costs can vary based on the van’s weight, emissions, and registration requirements in your area.
Parking and Tolls: If you plan to use your van in urban areas, parking fees can quickly accumulate. Similarly, if you frequently travel on toll roads or through toll booths, you need to factor in these costs for your regular commutes or business operations.
Depreciation: Like any vehicle, new vans will experience depreciation over time. As you use the van, its value will decrease. While depreciation is not an immediate expense, it’s essential to consider when reselling or upgrading your van in the future.
Modifications and Accessories: Depending on your specific needs, you may require modifications or additional accessories for your van. This could include shelving, security systems, roof racks, or other customisations. These extras can add to the initial purchase cost and ongoing maintenance expenses.
It’s crucial to thoroughly research and consider these factors before buying a van to ensure that you find the right commercial vehicle(s) for your needs and budget. If you’re looking for a reputable supplier of new fuel-powered or electric vans for your business, look no further. Vanaways has a range of affordable commercial vehicles on offer, with flexible van finance options available on a variety of models. Get in touch today to discuss your requirements with an experienced member of our team!
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