COI - The Cost Of Inaction
Running vans outside of their manufacturer warranty can lead to significant financial and operational implications for your business. Here's a detailed breakdown of the key points :-
Increased Repair Costs
Once a van is out of warranty, all repair costs are borne by the owner. Major repairs, especially those related to the engine or transmission, can be extremely expensive.
Unpredictable Expenses
Without warranty coverage, unexpected breakdowns can lead to unplanned expenses, disrupting cash flow and budgeting.
Costs Associated with Having a Vehicle Off the Road
Lost Revenue
Each day a van is off the road means lost revenue opportunities. For delivery businesses, this could mean missed deliveries, customer dissatisfaction, and potential loss of clients.
Rental or Replacement Costs
To mitigate downtime, companies might need to rent replacement vehicles, which can be costly.
Operational Disruptions
Scheduling issues and delays can occur when a vehicle is unavailable, affecting overall efficiency.
According to many studies, it’s estimated to cost around £800.00 a day!
Rising Costs of Vehicles
Increased Purchase Prices
Newer vehicles are becoming more expensive due to advanced safety features, better technology, and improved fuel economy. Delaying the purchase could mean paying more later as these features become standard and their costs rise.
Financing Rates
Interest rates may increase over time, making financing a new vehicle more expensive.
Technological Advancements
Fuel Economy
Newer vans tend to be more fuel-efficient, leading to long-term savings on fuel costs.
Safety Features
Enhanced safety features can reduce the risk of accidents, potentially lowering insurance premiums and enhancing driver safety.
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Maintenance and Reliability
Modern vehicles often come with better reliability and lower maintenance requirements due to advancements in engineering and materials.
The Right Time to Upgrade
Depreciation
The value of older vans continues to depreciate, meaning trade-in values will decrease over time. Upgrading sooner can maximise trade-in value.
Avoiding Major Repairs
As vehicles age, the likelihood of major components failing increases. Upgrading before these issues arise can avoid costly repairs.
Tax Benefits
There are tax incentives and write-offs available for new vehicle purchases that can offset some of the initial costs.
Maintenance and Operational Costs
Regular Maintenance
Older vehicles generally require more frequent and costly maintenance. This includes not just mechanical repairs but also wear-and-tear items like tires and brakes.
Breakdowns and Reliability
Older vans are more prone to breakdowns, which can lead to frequent downtime and additional costs for towing and emergency repairs.
Parts Availability
For older models, finding replacement parts can become challenging and expensive as they become less available over time.
Upgrading your fleet now, rather than later, can lead to significant cost savings and operational efficiencies.
The financial benefits of lower maintenance costs, improved fuel economy, and enhanced safety features outweigh the initial investment in new vehicles.
Additionally, avoiding the risks and unpredictability of running older vans outside of their warranty ensures smoother, more reliable operations.
Delaying this decision can lead to higher costs and operational disruptions as vehicles age and repair needs become more frequent and costly.
Get in touch with one of our vehicle specialists at Vanaways to discuss our wide range of available pre-registered heavily discounted from list price vehicles, where we can also take in your existing vans as part exchange, to ensure you're mitigating the risk of running up expensive bills through downtime, maintenance events and preventing reputational damage by failing on your contractual SLA's with your clients, that you work so hard to keep satisfied!
Whether you're just starting out, or an established limited company, we have a wide range of finance options to support your business with the most competitive rates across a wide panel of lenders and as we are an independent online van broker, we offer free impartial advice and aren't tied to a single manufacturer or brand, allowing us to get you the most suitable vans for your operations.
07711 283 945 & 01174 285 676