When you’re starting out as a self-employed plumber, electrician, or similar, or expanding an existing business, purchasing a work van is often one of the biggest investments you'll make. Choosing the right van is crucial - you'll likely be using it every day for years to come. Think carefully about your needs in terms of size, storage, passenger capacity, etc. Opting for a van that's too small can hamper your productivity, while going too large may be an unnecessary expense. Look for a van that balances your needs with fuel efficiency and running costs.
Research Prices and Shop Around
Don't just walk into a dealership and pick the first van you see. Research different makes and models so you know what kind of price range to expect. Check online listing sites to get an idea of going rates for used vans in good condition.
When you have an idea of pricing, shop around between different dealers and be ready to negotiate. Consider ex-business vans which tend to have lower miles and good service histories. Haggle on price and see if throwing in an extended warranty or free servicing can sweeten the deal. Shopping around between several dealers can save you thousands versus picking the first option.
Consider Finance Options Carefully
Look at used van finance deals. Crunch the numbers to determine what loan terms and interest rates are affordable for your business. Other options like van leasing may offer more flexibility and safeguard your cash flow, especially when starting out. Evaluate all financing options before committing so you don't take on excessive risk. Aim for terms that fit your budget while allowing your business to scale.
Factor in Ongoing Costs of Ownership
The purchase price is just one part of your van budget. Insurance, tax/MOT, fuel, maintenance, and repairs will likely add up to thousands annually. Research these costs in advance, and factor them into your budgeting before buying. Unexpected repair bills can sink a new business if you don't leave room for them.
Look for ways to reduce your ongoing costs too. Joining a traders association may give access to discounted insurance. Opting for a newer, more fuel efficient van can reduce spending on petrol. And developing good preventative maintenance habits (regular servicing, checking tyre pressure, etc.) can help avoid major repairs down the road.
Leave Room in Your Budget for Extras
Beyond the core costs, you'll likely need to outfit your van with tools, racking, signage and other job-specific gear. This can easily run into the thousands, so don't leave these to the last minute. Prioritise which accessories are essentials versus "nice to haves” and leave budgeting headroom for any must-have extras.
You may also need to cover the cost of decals, website, business cards and other branding if launching a new venture. Considering these add-ons in your initial budget will ensure cash flow isn't crippled right when you need to start generating jobs.
Planning ahead and leaving financial breathing room is key.
