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Should You Hire or Buy a Refrigerated Van

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Refrigerated Van

In the United Kingdom, about 18 million tonnes of food is thrown away every year. That’s about the same weight as 4,000 double decker buses. And it’s a problem which costs the average family £470 a year.

There is a great deal of debate about whether it is best to buy or hire a refrigerated van for your business. The simple answer to this question, however, is that it depends on what you will be using the van for and how often you will require its services.

If you are going to use the van daily and for more than a few hours at a time, it may be more cost effective to hire a refrigerated van. Having your own transport allows you to run your business how you want without any restrictions. Hiring a commercial van also means that if anything goes wrong with the vehicle, or if you need any repairs done, it can be done quickly and efficiently.

However, buying your own vehicle comes with other benefits. For example, if you run a particularly busy service, such as one that delivers handmade chocolates to people’s homes, you might find that you are better off buying your own refrigerated van so that there is always one available when you need it. Click here for more details.

Here are some other key things to think about:

Costs: A leased van will cost between £1,200 and £3,600 per month. A second-hand van will cost from around £3,000. Fuel is usually extra so check what this will be. You will have to pay VAT on anything you buy. Hiring a van comes with VAT added on so that price is competitive out of the gate.

Financing: If you are buying a van you can take advantage of lease finance which means there are no upfront payments and no capital tied up in the vehicle. You just pay for the use of the vehicle.

Drivers: Hiring a driver comes with all his overheads and he may not be as flexible as you would like. A driver delivering for your business will also represent your company.

Insurance: If you are hiring a driver/van on an hourly basis then there is likely to be insurance included in the hire rate. If you are buying your own vehicle then make sure your insurance covers this type of use.