Commerical Van - Lease or Buy - Diesel or Electric

Zero4five

Hi,

I'm looking to see if anyone can give me some advice.

I'm a sole trader and in the need of a motor upgrade. I'm currently driving a 2006 Berlingo.

During the summer, I had the need to rent a rental van from time to time, and after driving the new Berlingo or Caddy's I've released how much more money I'm spending on fuel by driving my 2006 Berlingo.

The new rental vans I was driving was super economical.

I want to upgrade my van, but unsure of the best way to go about it.

Whats the best way of going about this from a VAT registered sole trader. Lease or Buy?

Also, is a commercial electric motor worth considering?

Anybody advice or have had any experience that they could share?

Thank you kindly

Eric Cartman

buying works best here, leasing is really only for fleets of vans. I wouldnt buy an electric van at present, the residuals arent great and unless you exclusively operate around dublin city inside the m50 I think you'd find yourself stuck sometimes.

rolion

I'm leasing a van from Northgate. All included in monthly payment.

If you can buy, go for it, as you will own it along with service ,repairs and surprises.
Just keep in your mind as self employed, you pay for all expenses and deduct as business / trade. No mileage allowance, unless is a company car.
You can keep the diesel VAT receipts and all van associated expenses but not on a petrol engine.

If you decide buy it the bank needs to see good positive accounts for past few years, which may be tricky.

If you lease it, all expenses is monthly payment to the leasing company.
After 12 months, keep your account happy and bank may approve you for a commercial loan.


I'm going for an electrical car myself, next summer.
There are no vans or anything related to the it.
It will be the BMW i3 with range extender.
As said above, if you have the "patience" to deal with charging and range management / planning, go for an electrical, very cost effective. But if outside and more than 150-200km a day plus carrying tools and equipment, forget it.

As a van, i will look at a crew cab, gives you compromise of both worlds: work and family space.

Lastly (a personal feedback / life / experience ) please don't go for a 2018 / 2019 plate as that may trigger some very peculiar reactions from current clients or potential customers... just pick a normal decent brand ,2-3 years older.

Have a chat with your accountant... first call that will be if I will be you.

Good luck 1

Zero4five

Super, thank you both kindly for your advice.