Leasing and buying can both be sensible; the right choice depends on how long the business keeps a van, how many kilometres it covers and whether the vehicle needs a permanent specialist fit-out. A monthly lease figure is not directly comparable with a purchase price. Compare the total cost over the same period and include the value of the van at the end.
Consider a three-year example. A lease quoted at €600 per month is €21,600 over 36 months before any initial payment, service package, mileage excess or return-condition charge. Buying for €32,000 and selling for €18,000 after three years creates €14,000 of depreciation before finance, servicing, repairs and resale costs. These are illustrative figures, not Irish market quotes; change them to match written offers and a realistic resale estimate.
| Question | Leasing tends to suit | Buying tends to suit |
|---|---|---|
| Cash flow | Predictable payments and less upfront capital | A deposit or purchase is affordable |
| Mileage | Annual use is stable and within the contract | Mileage is high or unpredictable |
| Fit-out | Removable or approved equipment | Permanent specialist conversion |
| End of term | Returning or replacing the van is acceptable | Keeping, modifying or selling it matters |
Ask for the full lease schedule: initial payment, monthly rentals, permitted mileage, excess-kilometre rate, maintenance cover, tyres, return standards and early termination. For a purchase, include interest, depreciation, warranty, repairs and time off the road. A cheaper van can cost more if a breakdown interrupts billable work.
Tax treatment depends on the business structure, vehicle classification and use. Revenue publishes separate rules for commercial-vehicle capital allowances and leasing expenses; do not assume that a car-tax example applies to a van. Ask an accountant to compare the specific contract before signing.
