When you want to be able to grow a business that sets you free to live the life you deserve, it’s all about finding ways to make your money go further. Investing in a van is something many businesses and self-employed couriers and tradesmen have to do, but where does the real value lie?
With much talk online about the cheapest brand new vans in the UK, we want to show you how to make a cheap van really work for you. We’re going to do it by looking in more detail at appreciation and value than many people typically do.
Unpacking Van Depreciation and Value
If you take a quick look at these cheap new van offers, you would be forgiven for thinking that value means nothing other than the lowest possible price and then the ability to sell it. Yes, the less you pay, the less you will spend on the day you drive the van away for the first time, but there’s more to it. If you want to take a smart approach to growing your business, you need to think about depreciation.
Every vehicle will lose some of its value when it changes hands — it simply wouldn’t be right for us to pretend otherwise. But what you may not know is that cheap vans in the UK hold their value so much better than many other classes of vehicles. In the first year, it is typical for the value to drop by up to 20%, but the rate of depreciation slows dramatically after just one year.
Value is another interesting metric that we can learn a lot about by taking a closer look. For example, there are many factors that determine the value of your investment in addition to the purchase price:
- Maintenance frequency and maintenance costs tell you how much value the van adds to your business by telling you how often it will be on the road and what it will cost you.
- The condition of the van over the long term impacts its value by determining how much you can sell it for if you want to.
- Van mileage helps determine value because a lower-mileage van will generally require less frequent servicing and maintenance
- Having a complete service history positively impacts the value because future buyers will pay a premium for the peace of mind it provides
- Extended warranties add value and allow you to sell for more, as they provide the new owner with something extra
If we combine these insights with a further look at depreciation, we can start to see where the best investments for your business can be found.
Factors Influencing New Van Depreciation in the UK
The cheapest brand new vans in the UK include options like the Citroen Berlingo M 110PS Puretech Enterprise Edition and Fiat Fiorino Cargo 1.3 Multijet II 80PS, but what causes them to lose value? Here are the key factors that you need to be aware of when you’re looking to maximise your ROI:
- The make and model will shape the depreciation curve because brands that are more popular always tend to hold their value better. This is because more people want to drive them, and higher demand pushes up the price.
- Market trends will impact depreciation. If a van is known to be versatile and reliable enough for a new market — the rapid expansion of self-employed couriers being a great example — it is far more likely to hold its value.
- Manufacturer choices also matter because van models that are discontinued will cost more to service and repair in the years ahead, which then results in greater depreciation. Likewise, an established range will hold its value far better than a new entrant to the market.
Now that we know how depreciation works in the UK, we’re ready to apply what we’ve learned to the cheapest brand new vans in the UK.
Does the Cheapest Brand New Van in the UK Hold Its Value?
If you take a look at van offers, the first thing you’re going to be considering is the price of each van. While this is a natural starting point, we’ve seen that the next thing you need to consider is the ability of the van to hold its value. Here are the key points to be aware of:
- The cheapest brand new vans will always lose less money over the course of their lifetime in absolute terms.
- Buying a new van will remove issues with incomplete service histories or inconsistent maintenance and repairs.
- New vans that are very cheap to buy tend to be in very high demand, which in turn helps keep their value high in the years to come.
While every vehicle in the UK will lose some of its value over the course of its life, a cheap brand new van holds its value better than the vast majority of options out there. This means that the startup costs are low, the resale options are plentiful, and you can also reduce maintenance and running costs by coming to the experts. Exactly what you want to hear when it’s time to take back control of your business the smart way.
Is the Cheapest Brand New Van in the UK a Smart Long-Term Investment?
Yes! Cheap brand new vans hold their value over the long term, are highly fuel-efficient, and have readily affordable running and maintenance costs built in. We can help you find exactly what you need so that you can make an investment in your business that is sure to pay off for many years to come. Ideal when you want to be able to get the right van for the job and focus on what you do best.
How to Work Out What ‘Cheapest’ Means to You
When you’re assessing the cheapest brand new vans in the UK, there’s a little more to it than picking the lowest initial cost. Low running and maintenance costs will also make the van cheaper in the long run, as will its ability to hold its value for many years. This last point is key because it means you can sell the van for more when you’re ready to upgrade, allowing you to recoup much of your initial investment.
Opportunity cost is something that we also want you to consider, and it’s something many tradesmen don’t think about when they focus solely on the purchase price. If a van is cheap to buy, but is continually in the garage, it’s costing you money as you won’t be able to get to and from your next job. A reliable, durable van will never force you to miss out on work.
Ready to Start Browsing the Cheapest Brand New Vans in the UK?
We’re here to help you find the best new van for sale the moment you call or click. Reach out today, and we will guide you through everything you need to know so that you never have to go anywhere else.
When you come to the experts, growing your business becomes so much easier!