Should I buy or rent a van? | Europcar Business Fleet Services

Hear me out when I say that choosing a new van is easy. Working out how you are going to afford a new van is the hard part.

When you have been in the mobility business for a while you will know enough to workout what will be the best deal for businesses to consider when it comes to running their fleet.

As an automotive-insider we know all there is to know in the business.

When clients ask questions like;

1) “How do I get a good deal when it comes to owing a fleet?” and 2) "Should I lease, buy or rent?”

Long Term renting actually answers both of these questions

Now that the night of recession has lifted and Ireland has become the fastest-growing European Union economy, more and more businesses are getting back on track.

Business needs are growing and when the time comes to source new van(s) for your business, there are different options to consider. Should fleet vehicles be purchased or rented on a long term basis?

The difference between buying and long term renting.

Most likely, a person would consider the buying method because they are most familiar with this approach, find the cash either stashed away in your bank account or ask someone for a loan. However, once paid for, the van it is yours.

Same as vehicle leasing, this is a method of vehicle ownership most businesses have known about for a very long time and they have never tried any other way until now.

The alternative is long term rental. The concept is simple, you get the van you want for as long or as short as you need. No maintenance, no tax, no insurance charges. It’s a complete package and completely flexible.

Let’s review all pros of buying or long term renting and decide if you are a buyer or a renter.

I hope that at the end of this blog I will have been able to help you to make up your mind.

The pros of buying a van

Buying is a good option for several reasons:

  • It tends to offer the best value. When you are negotiating with cold, hard cash, you are in a good position to haggle down the price and get a deal.
  • If you already own a depreciated asset, you can then trade it in and save more money on your new depreciating asset.
  • You are not restricted to a mileage limit; hit that vehicle up for, as many kms as you want, it is your asset. You will see it balance itself out when you come to sell it.
  • Most importantly, the van is yours. It is an asset you own and manage, a part of your business administration and when you need to sell it, trade it, service, tax and maintain it you can do so whenever you want.

The Pros why you should consider long term Van rental

Long term van rental has a number of advantages over purchasing, outlined below are the advantages that the Europcar Business Fleet Services can offer you:

  • Value for money – Long-term Van rental will help you to maximise your investment because you only pay for what you need and it rules out any costs associated with an underutilised fleet. Van rental also enables you to source vehicles without acquiring debt on your balance sheet, not to mention the fact that you don’t carry the cost of depreciation.
  • Flexibility- With long-term van rental, you are not tied to a fixed term commitment. Vans can be accessed for as long as they are needed and your business will only pay for the time used. Furthermore van rental enables you to mix and match your vehicle model requirements over time or for a specific occasion. An upgrade or downgrade of a van can be arranged whenever needed with particular preferences for latest models or fuel efficient vehicles are easily met by Europcar Business Fleet but car leasing would not offer such flexibility.

    You cannot swap or upgrade between vehicle classes during the term of your lease. While leasing looks a lot like renting in many ways, it does not allow you the same flexibility as a rental. You are bound to the terms of your contract and swapping cars in the middle of the term is not allowed when leasing a car.
  • No service or maintenance fees – all vans from Europcar Business Fleet Services include maintenance and road tax.
  • Map your rental to seasonal business fluctuations – Long-term rental requirements can be tailored to suit fluctuating levels of business activity throughout the year. Some companies for example might need to increase their number of rented vans during the hectic Christmas period and then return to their usual amount once business calms in January.
  • A team of Experts – with van rental you gain access to a team of fleet specialists who know their fleet inside out and are just a phone call away. These individuals are on hand to assist you throughout your rental experience allowing you to get on with the important business of running your company.
  • No Leasing contract involved – As you know, vehicle leasing requires you to sign a contract over a period of 2 - 4 years where you are unable to change your vehicle, go over the set mileage without been been excessively charged.

    Europcar Business Fleet Services has ensured that the flexible long term rental is exactly what you business need now and in future as it comes with no come with strings attached.

    Unlike leasing which allows you to drive a new car every few years, with relatively low monthly payments but a lot of restriction on both personal contract hire (PCH) and personal contract purchase (PCP)
  • Branding flexibility- Europcar Business Fleet Services will keep your team in modern vans that will reflect well on your brand. (A vehicle can look tired with three years of use.) In fact, Europcar can supply you with commercial vans branded professionally with your own company brand.

    We understand that mobile branding is one of the best, most cost-effective means of driving your business. That is why we will make sure that we will help your company to maximise your exposure.
  • Bluetooth- all Europcar vans have a Bluetooth system implemented. You would be able to answer a phone call hands-free and have a conversation over your car speakers with just the touch of a button. All of this is the reality of today’s new Bluetooth car audio systems.
  • Nationwide- Europcar has over 18 Locations in Ireland, giving you, access to fleet vehicles in the areas your business requires them.

Decisions, decisions

But what’s best for you? The most important factor is the cost.

Choose to buy and you are taking the financial hit as well as the responsibility of full ownership. It also means the depreciation; servicing and repair costs are all yours.

Long term spreads the payments over time and you can forget about additional servicing costs.

Long-term van rental will help you to maximise your investment because you only pay for what you needs and it rules out any costs associated with an underutilised fleet.

Now that you have read all of the above I hope it can help you to make a well informed decision in your next van decision!

Before deciding, your businesses also need to consider leasing. This method of vehicle ownership has been around for as long as buying and businesses are used to it. Like buying a fleet, business owners are not flexible with changing cars.

However, with long term rental they have the freedom to change to any vehicle type they wish. As we know many businesses are now looking for the flexibility to be able to change vehicles whenever they wish so that they can minimise cost and overall maintenance required for a fleet.