[daniel b]

Hi all
What do you guys prefer to do lease or buy your van im in a bit of a dilema ive got the money but it might be best to lease and keep money for somethin else (ninja cc ideally),anyway what do you guys think is best.

Cheers
Dan

[des]

Tax wise it is better as you can write a lot of it off against your tax bill but look out .Ive just finished paying for a machine and the company was still taking out the monthly payment ,When i asked why they said that it is in the small print that i have to stop the payments  .I have just got the money back  des ps and remember that you have to insure the bit of equipment  all the time that its on lease

[daniel b]

cheers dez, thats a bit underhanded from them aint it guess you want be using there service again,cheeky gets a.

[Ian Gourlay]

With loan rates at 6.6% I would have thought this was a more cost effective method, for both van and machine.


Keep cash for working capitaladvertising expansion, pay for equipment as it earns money.


It is up to the invidual to do the resarch and balance the options and take legal advise if required before entering into any agreement

[Elite (Ben)]

Ian,

well said, the leasing companies can charge extortionate rates. keep the cash and think about using a loan. The interest on the repayment can be charged to your accounts and the spare cash can be used to meet your direct business requirements.

ben

[preston powerblast]

Its ok leasing, but have you got the work to pay for this?
What happens when you have a slack period?
You have to look at the big picture.
If youve got the work regular and plenty of it, then I would lease.
But at least when its bought, its paid for and the only overhead is the running costs and maintenance.
I have a business advisor, he is involved with all sorts of finance, vehicle funding, loans, commercial mortgages etc.
His advice aint cheap, but its good.
He alone has kept me in work for last 2 months.
But he tells me when to buy, when to hire and when to lease.
Hope everything works out for you.