Business startup

[mattle40]

Hi everyone

I'm Taking the plunge this year (sooner the better) and going self employed, however iv relied on my company van for too long and haven't got one of my own
So this has to be my starting point.
The first big problem is my insurance, my quotes are between 2.5-3k
My options seem to be either buying a van for around £1000 cash and insuring upfront leaving me around 4k out of pocket, with risk of extra costs with breakdowns etc but no overheads as such
Or buy a new vivaro on hp £2700 deposit and £320pcm for 5 years and this includes £2500 clashback which I could pay my insurance with
This leaves me £2700 out of pocket but an added overhead of £320pcm
But I have a valuable asset with warranties and a year to pull money together for next years premium.....

Please help guys this has been tearing me apart for months now and I just need to forget about doing it or jump in head first....
I appreciate any input.

[Mike]

Why are your quotes so high?

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[Alan M]

thats 21900. if my maths is right. you might be better off buy a smaller van (berligo etc for 4-5000) and wait for the new one. if you can afford the 320 a month then in a year and a half that one will be paid for and you can get the new van. you can get good vans cheap now that nobody is using them for work

[mattle40]

My insurance is terrible, I got banned 5 years ago and only got licence back last june so am classed as a new driver again.

As for a smaller van I just think I'd regret not getting a bigger one, I'm so used to lugging timber and plasterboard and I have nowhere else to store materials other than in the van

[Mike]

My insurance is terrible, I got banned 5 years ago and only got licence back last june so am classed as a new driver again.

As for a smaller van I just think I'd regret not getting a bigger one, I'm so used to lugging timber and plasterboard and I have nowhere else to store materials other than in the van

Have you tried specialist insurance companies for banned drivers? Might be worth a go. Also some companies give you a ncb if you've been driving/ insured on a company van.

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[mattle40]

Well it's not actually hight because of the ban as it was over five years ago, it purely down to being a new driver again because iv been driving less than a year. I will look into those tho thanks, especially the no claims.

[andy allen]

personaly, i wouldn't buy a new van, you loose telephone numbers of it, as soon as you drive it out of the showroom.

how much work do you have lined up, how much do you think you can earn per month, how much disposeable income do you think you will have per month, this will then determin what you can afford.

have you thought of buying a second hand van from a dealer, with cheaper repayments, or paying your insurence in installments and spreading the cost over the year.

[mattle40]

Well I think basically I have the choice of forking out upfront to have no overheads but that's limited to the 4k iv got saved or go finance so iv still got a cushion to pay my bills but added overheads. The real killer is my insurance premium. I will look at second hand from a dealer, do they give warranties? I could get a cheaper finance and pay insurance upfront for a compromise...

[Mike]

Well I think basically I have the choice of forking out upfront to have no overheads but that's limited to the 4k iv got saved or go finance so iv still got a cushion to pay my bills but added overheads. The real killer is my insurance premium. I will look at second hand from a dealer, do they give warranties? I could get a cheaper finance and pay insurance upfront for a compromise...

i bought my van from van monster Used Vans and Commerical Vehicles from Van Monster their vans include 6 months tax and 6 months warranty. check what's covered with the warranty as they do vary, some aren't worth the paper they're written on.

[steve187]

it seems you have been driving a company vehicle since last June, Your premium will be high because of the ban, was the ban for the five years of did you take a while before applying for your licence again? try different insurance companies and see if a letter from your company as to your driving record since June will help with a reduced quote.

[swanman]

Hi

yes that seems very high insurance

But i would never buy brand new van

I PAID FOR MY BERLINGO 4000 Great van thats all you need

[mattle40]

Ye that is right although the ban hasn't affected the quotes as it was over 5 years ago and the licence is clean, the ban was a one year ban but just never reapplied until the chance of a company vehicle came up, I will try the letter thing tho. Iv done 20,000 miles in 6 months with no incidents so maybe that would help

[phil w]

just a thought how about buying second hand from auto trader or the likes if you get low millage and few years old there's some bargains to be had if you see something you fancy maybe get a mate if you don't know anything about motors or pay a mechanic a few quid to give it the once over for you, got mine from a private seller on autotrader about 5yrs ago, the only thing is you don't get a warranty.

[mattle40]

I keep getting advised to get a small van or even an estate car just to get started but I can't help but think it would be a mistake as I just can't store materials or tools anywhere else but the van?? Do you think I'd manage? I know I can take timber on a roof rack etc but overnight storage isn't possible

[swanman]

Just keep going mate you will get there and it will all fall into place

[mattle40]

Have thought of that Phil, I just worry about buying a dud and forking out for repairs etc, suppose I might have to just bite the bullet tho and take that risk...

I think like everyone I'm trying to balance risk and reward but it's a hard task!

[swanman]

i manage with my smaall van and only take what you need

[phil w]

think a small van would'nt be a bad idea, connect, combo, berlingo something that size with a roof rack would be big enough for tools, as for larger materials just needs a bit of organising, e.g pick on way or get delivered to job, really depends on how much materials your planning to lug about.

[phil w]

Have thought of that Phil, I just worry about buying a dud and forking out for repairs etc, suppose I might have to just bite the bullet tho and take that risk...

I think like everyone I'm trying to balance risk and reward but it's a hard task!

always a risk in buying private, personally I know nothing about engines, kick the tyres is about my wack, if something really catches your eye have a look, you can always get someone who knows what they're looking at to go back with you.

[John Benton]

I have had a Combo for 6 yrs now and it's served me well. Always get tiles delivered to customers houses so no worries about weights and space with all my tools in.

[mattle40]

I think I have to reassess my approach,

The general opinion seems to be to buy a smaller van 1-3 years old from a dealer.
And if I get finance on this it will be a lower payment per month and I can pay the insurance as a lump.

[Bri]

I did my first couple of years with an Astra van and it did its job. If I was to give you one piece of advice, it would be to get a smaller van with a higher roof and a side sliding door, I found that the Astra had a lot of dead space behind the seats as it wasn't really accessible or I had to empty the whole van to get to anything that was stored there. I'd say a transit connect is the perfect smaller van.


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[mattle40]

Cheers bri, fair point as I had thought about an Astra.

[hillhead]

I bought my trafic four and a half years ago, great size van but loaded all the time !!
Plus the amount of marble slabs etc i'v carried lately is madness
If i change anytime soon i'd consider a caddy...

[jwatson]

when buying a used van use this to aid your buying desision. every vechicle since 2005 has had its mot's logged with direct.gov you can check if milage advertised is correct, if it has failed mot and thus what work must have been done to get a passed, it wont make the desision for u but another tool to help. Leaving Facebook... | Facebook

[jwatson]

when buying a used van use this to aid your buying desision. every vechicle since 2005 has had its mot's logged with direct.gov you can check if milage advertised is correct, if it has failed mot and thus what work must have been done to get a passed, it wont make the desision for u but another tool to help. Leaving Facebook... | Facebook

check the car/van u have at the moment is is interesting to see what history it has

[bobbynz]

I'm not sure what you would pay for a lease over there but I leased a vehicle for 3 years all serviced at a good rate. Just another thought for you. If you can afford it you will get a brand new vehicle every 3 - 5 years with problem free motoring.
If its available anywhere, some lease comp. lease to buy vehicles that have been returned after a previous lease at a really good rate. Not new but well serviced with service history, and you get to keep the vehicle when the contract is done.
If you are not sure what to look for , always ask for a service history, go for low kms and dont worry about the body as long as there is no rust, check how many owners and look at the gap between the last 2 or 3 owners. If there is a small gap and they are not dealers, you can bet your bottom dollar that theres something wrong.
the other thing, you should really try to spread your payments for anything over the space of the financial year. Try to keep a good cashflow going and dont forget whatever you spend will be tax deductible so keep that in mind. Also if this is your first year self employed and if its like it is here you wont need to pay tax until the following year. this will free up some cash during your first year. But dont forget to pay it back asap. and lastly, make sure you have your book keeping up to date, that way you will know exactly where you are financially at all times. Very Important.
I hope all goes well for you