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Van lease vs finance for van

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  • 23-02-2020 12:02pm
    #1
    paddylonglegs
    Registered Users Posts: 3,540 ✭✭✭


    Hi folks,

    Posting here for thoughts from people who have more experience than I do on this.

    I am a limited company and now need a van. I don’t need a brand new van however.

    I could apply for finance from bank for approx €12k - €15k and pay it back over 4 years, it will get me a 4 or 5 year old van, or could lease it (I assume this means a brand new van)?

    The benefits of bank finance is there will be a lower monthly repayment. To my knowledge, I also may be limited to type of van I can choose from with a lease (to my knowledge)

    When it comes to tax incentives or savings etc, is there a benefit over leasing than applying for finance?

    Any advice appreciated on this.


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    #2
    Bandara
    Registered Users Posts: 3,282 ✭✭✭Bandara


    Afaik its extremely difficult to get any finance for second hand commercials

    There are lots of options with companies to rent vans for long periods with all servicing etc covered.

    Alternately you can get one via HP and avail of the "Half Rule" when you have paid off half the amount, and then go get a new one again without any penalties or credit issues possible to be put against you.

    Northgate for example give their various options on their site.

    https://www.northgatevehiclehire.ie/branch-finder/dublin?gclid=EAIaIQobChMIzuOJ3eLn5wIVSLDtCh099wSmEAAYASAAEgIWlvD_BwE

    Click on "Hire options" and its listed there

    Good luck.


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    #3
    silver2020
    Registered Users Posts: 2,045 ✭✭✭silver2020


    No issue getting lease for a relatively new van - 4 years on a 2018 would be easy (personal experience earlier this month)

    Lease = payments + vat with vat claimed each month.

    Loan = payment incl vat and vat claimed in the period van purchased, but loan would be for the net cost excl vat (so buy as close to end of 2 month vat period as possible for cashflow purposes)

    Advantage of a 2 year old van is you will have some residue of the original warranty left.


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    #4
    paddylonglegs
    Registered Users Posts: 3,540 ✭✭✭paddylonglegs


    silver2020 wrote: »
    No issue getting lease for a relatively new van - 4 years on a 2018 would be easy (personal experience earlier this month)

    Lease = payments + vat with vat claimed each month.

    Loan = payment incl vat and vat claimed in the period van purchased, but loan would be for the net cost excl vat (so buy as close to end of 2 month vat period as possible for cashflow purposes)

    Advantage of a 2 year old van is you will have some residue of the original warranty left.

    It feels for me that a loan may be easier on cash flow than the cost of lease on a van, and I’m looking for a very specific model which I can find second hand.

    I have to look into the other perks of leasing regarding servicing etc.


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