Self Employment & Vans..

simplest option is ask your accountant which is best for deductions. if you go second hand then ask your mechanic to source one for you.

and bigger is usually better as small vans as tool carriers is fine but if you have to supply and carry then you will need the space.

that said I had a supercarry which was tiny but roomy, a raised false bed allowed me to store the consumables while leaving the bed for the tools or job kit.

gone are the days of having fewer tools than you could carry in a fiesta.

nowadays I'd need a removals van  [scared]
 
Thanks for all the great advice guys!

I've recently taken delivery of a 13 plate Vauxhall Vivaro, 41k on the clock, drives like an absolute dream!

Now to get my head around the racking..

~WW
 
When i started my own biz, I was young and a little bit wild.  nothing much in the bank and less in my pockets.  I was full of enthusiasm and very willing to do the dirty work along with the gravy.  The only truck i could afford was about ten years old, but big enough to haul all i needed to haul.  for the first several years, I bought only old and beyond their prime trucks and ran into the ground.  I was ecstatic when I finally was able to purchase new.  I still ran them as long as possible and bought new again.  When i had a large payroll, that seemed to work for me.  I did, always pay close attention to maintenance, usually, before needed. 

I always tried to be honest with my customers and give good value, even when driving a truck that was close to end of its days.  I kept the equipment looking good even if under the sheet metal it was groaning.  I had all the work I could handle even tho I have never advertised.  Even with old trucks, I sometimes got jobs i knew i was high bidder on, so one time i asked a new customer why they had given me their work when i had told them i had never done some of what they had on the plans and my equipment was so ancient.  That was asked as we were sitting over a couple of beers.  The wife told me they liked my honesty and even more, they liked my enthusiasm.  I always remembered that; and it is important.  I am now in landscaping and slowly phasing out.  I have a great group of clients, some on whom have kept me around for over 30 years.  I have decent, but ancient, equipment.  I buy my LS equipment new, but my trucks I find better to get used after thorough inspection and good pricing.  Maybe when i get to be 40, i will retire and get a new truck once more.

The last truck i bought brand new was perhaps the worst deal i ever made, both in the truck and especially the dealer.  the less said about that,the better.  The present truck and the least expensive over the long haul is the truck i now drive.  A 1/2 ton chevy 4x4 pickup with the short wheelbase.  I bought it from a dealer.  i was looking for a new 3/4T 4x4 pickup.  i had never bought a 1/2T before, but spotted this one used. It had 55k on it but looked brand new.  i crawled around underneath and checked all I could check that way, told the salesman this is the truck I want.  He told me they only took it in a half hour ago and had not gone over it yet.  i gave him a payment telling him to call me when it was ready.  that was nearly 100k miles ago and i have only replaced the tranny other than regular service. 

I used to service my own equipment as TimTool does, but I can afford now to have it done.  I have been in this area for a looong time and know where I can get good service.  To me, I have found that being careful what i buy, buy used and run forever and keep the maintenance up to date and thorough works for me.  It does not work for everybody, but I am satisfied.
Tinker
 
Just remember that when meeting a customer your vehicle says a lot about you. Nothing is worse than pulling out of a driveway and leaving a spot of motor oil or power steering fluid on a customers driveway. Here in the states it is also a good idea to have an American brand vehicle.  You will run into a lot of customers who expect a work truck to be a ford dodge or Chevy. Just pull into any lumberyard and the chances are 99% of the vehicles are those brands.
 
Toyota produces the most vehicles in the USA right now...

Detroit? heh...

I agree about motor oil, in general. Put down something if you know it's going to happen, or park far enough off of the driveway. Unfortunately it's not worth getting an oil leak fixed in some cases, which may or may not be understandable to some people.

 
JeremyH. said:
Toyota produces the most vehicles in the USA right now...

Detroit? heh...

I agree about motor oil, in general. Put down something if you know it's going to happen, or park far enough off of the driveway. Unfortunately it's not worth getting an oil leak fixed in some cases, which may or may not be understandable to some people.

I run my trucks hard and long.  I keep up with maintenance.  If I spot any oil leak, the truck, or car goes onto a lift to investigate and GET FIXED.  My day job is property care.  I would not last long if i were leaving oil spots in my customers' driveways.  If the leak cannot be fixed, the part will get replaced.  Or----- the vehicle gets replaced.
Tinker
 
I've had more work trucks than I can remember and bought all of them. Looked into leasing a couple times but its just not a good option for me. While some people say there are tax benefits to leasing that's probably true for a 'car' but probably doesn't work out for a work truck from guys I know that have done it. Between excess mileage charges and damage to the vehicle back end charges could eat up any tax benefits.
I think you have to evaluate how you deal with vehicles. All my trucks have been somewhere between decent looking to total beaters. Doing so allowed me to drive a nice car. I know guys who have spent big money on very nice new trucks. They sure do cry the first few times that thing gets whacked on a jobsite.
For me its a work truck it gets all the maintenance and mechanical love it needs so it can run and get me to the jobsite. I don't care how many dents it has from a 2x4 whacking it. If you are working the upper bracket circuit then of course you need something better looking. I'd buy something mid-range, low miles, good looking. Save the rest of the money for another motorcycle :)
 
Save the rest of the money for another motorcycle :)
[thumbs up] [thumbs up] [thumbs up]
 
I'm not in the trade, but I am self employed.

I may see things different, but I always buy 3+ years old vehicles.  The majority of the depreciation (the real kind, not the funny kind you apply for tax figuring) occurs in the first 3 years.  For some cars its 30%-50% of the value slashed in 3 years.

Also, whenever possible I have paid cash.  One of the things that can hurt a small business is the obligation of payments (whether leased or financed).  I HATE payments of any kind. 

Leasing has never made sense to me as you are paying heavy depreciation of a vehicle you won't own.  Sure you get some warranty, but I'd rather save 50% on the purchase price and kick in a thousand or so for maintenance down the road.  I stick to car brands that are reliable and have done OK.  (in fact, if you shop around you may be able to get good enough deals used that you can sell a few years later if needed and break even…not possible if you buy/lease used).

I realize that this approach isn't for everybody, but it is the way I "roll: :)

If I won a million dollars, I'd still buy a 3-5 year old car (a nice one, but I'd let that first owner take the depreciation hit).
 
when my old van died, I to couldn't decide wether to lease or buy second hand.
in the end I bought a 2 year old  transit, for £9000, 20,000 miles on it, for me leasing seem like wasted money, you won't own it at the end, excess mileage, any damage you'd have to pay for on it's return, plus, if you wanted to properly rack it out inside, you'd have to pay for any internal damage too.
 
I see you have bought a van now, well done!

I've always bought 2nd hand VW's my first T4 I had for 6 years, lost £800 in that time on depreciation!

2nd Van, T5 2.5 174bhp tyre destroyer, brilliant superb van, 3.5 years of ownership, sold for £500 more than I paid for it!

Current van, another T5... more sensible 1.9L, had it 3 years, If I sold it today id probably get £1000 - £1500 less than I paid for it.

I don't just 'buy' a van, I invest in it, sure I typically pay more more a VW, but the depreciation is next to nothing if you buy well in the first instance.

Back to tax issues, you have to plan how you want to run your business and your life. I can write off so much to tax, that I don't make a profit, excellent news, no tax to pay... but that will also mean you'll not be able to show a profit and will be unable to borrow and monies either for the business or get a mortgage etc.

Happy motoring  [cool]

 
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