Leasing or Buying? A comparison for Self-Employed Tradesmen

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Many people weighs the pros and cons when it comes to leasing or buying their new vehicle for personal use. This decision may be even more important when a self-employed tradesman is in need of a new vehicle. There are many benefits to leasing a business vehicle but then there are also benefits to owning the vehicle outright. There are some important questions to answer prior to making a purchase.

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Pros And Cons Of Buying A Van

It is important to take into consideration how many miles are driven in a work vehicle each year. For a self-employed tradesman who might be going out on a lot of business calls or attending a lot of appointments this mileage might add up pretty quickly. It is important to be generous with the estimate because when leasing a vehicle, most dealerships will charge an extra fee per mile when the vehicle is driven over 10,000 or so miles per year. On the other hand, if you calculate your mileage amount properly you can save a lot of money by leasing and staying within your mileage amount.

Pros And Cons Of Leasing A Van

There are people who like to always drive a newer vehicle and do not typically keep a vehicle around for more than a few years at a time. When it comes to a business vehicle, the vehicle should look nice and presentable. This can make leasing beneficial because most leases last for about two years at a time before having to trade a vehicle in for something new. The only downside to this process is that you never outright own your business vehicle.

There are a number of vehicles that are commonly used for business purposes and they include:

Ford Transit

This is a more compact van that is often used for business use. The Ford Transit comes equipped with a 2.5 liter, 169 horsepower engine. A six speed transmission and antilock brakes make it powerful and safe for both business and personal use. The base level Transit has an affordable sticker price that sits around £14,637.08.

Mercedes Sprinter

The Mercedes Sprinter originated in Europe in the year 1995. This has been a trusted and versatile business vehicle that today comes with at 3.0 liter, V6 engine that provides 188 horsepower and 325 pound feet of torque. This is a vehicle that is reliable in all kinds of weather conditions. The Sprinter can be leased for as low as £279 per month.

Volkswagen Transporter

This is a vehicle that looks very basic for the outside but there is plenty of power in the 1.9 litre, diesel engine. The higher end model option comes with a 2.5 litre powerplant motor and is turbocharged. You save a lot of money driving this diesel van around and the sticker price sits around £18,440.

The great debate of leasing versus buying a vehicle when you are working as a self-employed tradesman might come down to money. Many independent workers may not know that there are some great tax consequences when it comes to a business related vehicle. Both a purchased as well as a leased business vehicle can be deducted by way of a standard mileage rating system when it comes to tax preparation. When leasing, the mileage is set the first year as well but typically that mileage amount is not going to change for the duration of the lease. For more information on vehicles that are available for lease you can visit your local Kudos Vehicle Leasing Dealership.

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Leasing or Buying? A comparison for Self-Employed Tradesmen, Seekyt
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.