Why Plumbers Should Lease Their New Works Van

Van Leasing for Plumbers - why it works!

As any plumber will tell you, the most essential piece of equipment for running their business is their work van. It may not be much use when it comes to unclogging a blocked sink or power flushing a boiler, but without it you can’t get from one job to the other with the rest of your tools.

One of the key considerations for any plumber is whether to buy a work van outright or to lease a vehicle from a reputable leasing company. While there are arguments to be made for both approaches, in this article we’re going to be taking a look at the benefits of leasing a plumber’s van.

Van Leasing means you have Less to pay up front

Whether you are just starting out in the plumbing business or replacing a vehicle that has seen better days, buying a new works van requires a certain amount of capital.

A new vehicle is going to set you back tens of thousands of pounds, while a pre-owned plumber’s van will be several thousand, plus whatever repairs or maintenance it might need. Even buying a car with financing will require at least a 10% deposit, which could be put to better use investing in new equipment or advertising your services.

With a leased works vehicle, the initial outlay is much smaller, typically being the first month’s rental fee and an administration fee. Compared to buying a vehicle outright, this is not only a significant saving, but you often end up with a better vehicle on lease than you could afford to purchase.

Lower monthly payments

While there will be variations between different lease companies and finance companies, it is generally true that the monthly cost of leasing a works van is lower than the monthly repayments on a vehicle loan for a like-for-like vehicle.

This offers twin benefits, depending on which way you approach it. If you already have a particular vehicle in mind, you can find yourself spending less per month to have that particular make and model. Conversely, if you have set aside a certain monthly budget for a works van, you may find that you can afford a better vehicle under a lease agreement than you would with a van loan.

Van Leasing can offer Tax benefits

When you own a vehicle outright, the temptation is to use it for things other than your day-to-day job—it’s your van, so why not, right? If you lease a works van for your plumbing business (and only for your plumbing business), you can deduct the cost of the lease payments from your annual tax return as a legitimate business expense.

Current tax law is very clear on this—the cost of the lease can be deducted if the expense is “wholly, exclusively, and necessarily incurred in the performance of the duties of employment.”.

All’s well that ends well

Once you are done with your plumber’s van, what next? If you own it outright, then you need to find someone to buy it, which is not easily done. The cost of your van will have decreased considerably over the years, meaning you only get a fraction of its worth back.

Not only that, there are fewer people wanting to purchase second-hand vans in today’s economy (ironically, because many of them will have found a cheap leasing option!)

With a leased van, there is none of that hassle. Once the lease term is complete, you can choose to extend the lease, return it to the leasing company, or upgrade to a better model.

Access to new vehicles

Speaking of better models, leasing is the best way to ensure a new van every couple of years (or however long your lease contract might be). Swapping vehicles you have paid for frequently carries a large financial risk, while with a leasing agreement, it’s as simple as handing over one set of keys for another when it is time to renew your contract.

Lease a Works Van Today

Wherever you are in the UK, if you are looking for a great deal on a commercial van lease package, you have come to the right place. Here at CarLease UK, we have an extensive range of work vehicles suitable for plumbers set up as a one man business or as a limited company. Take a look at our online selection or give the team a call today to discuss your requirements and see what we can do for you.

For more information contact us on 01942 608606 or email us enquiries@electriccarlease.co.uk