Outright Purchase

Well, you can if you want to but some manufacturers have some serious discrepancies between vehicle costs on finance and those for cash. The problem with paying cash is that you might sell the vehicle the next day to a used van dealer who can then undercut the local franchised dealer for a new vehicle. For all the same reasons mentioned under ‘Finance Lease’ and ‘Hire Purchase’ manufacturers are loathe to throw discounts at cash purchases. There is so little control over where vehicles might turn up for resale that the old adage ‘cash is king’ is most certainly not true for new vehicles, either cars or vans for that matter.


Some businesses see it as an admission of financial weakness if they can’t afford to buy their vehicles for cash. However, by buying outright you are effectively tying up your working capital in an asset which hasn’t been procured in the most effective way. It is depreciating daily with you as the sole risk taker in its value and with no real guide as to its future worth. He discounts on many vans actually negate the interest costs of taking finance. If you take a vehicle on contract hire then you don’t even have the task of disposing of the vehicle later.


Leasing rather than buying outright certainly does not indicate any financial weakness in a company. Conversely the major leasing companies are fairly choosy as to who they will accept for finance so a number of vehicles on a lease is generally and extremely good indicator of a company’s financial strength.

White Hot Vans is a trading style of The White Hot Van Company Ltd.
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