How I run my business van - David Rose, managing director, David Rose Lighting
Van: Nissan Vanette Cargo 2.4 D
Financing method: Nissan Finance HP over three years
David runs his own specialist lighting company – David Rose Lighting Ltd.
The company has two employees. And one van – now six years old. But it’s proving ultra reliable and still looking smart.
Some 50% of the business is the supply of specialist lighting to the TV and film industry. The rest is retail based from David’s high street shop in Hampton Hill, Middlesex.
“We drive about 10,000 miles a year in the van,” says David. “It used to be more, but that means leaving the shop. With just two of us that can be tricky at times. Anyway, our prices and wide stock encourage people to come and pick up anyway!”
David managed to secure £1000 off the van’s purchase price, because the dealer registered it as a demo vehicle first before selling to David.
“We then put it on a three-year HP agreement,” says David. “It suited me at the time. The payments were manageable. There was little paperwork – I’m not good at the small print stuff – and in the first quarter I was able to reclaim all the VAT. After six years it really owes me very little!”
David had the van signwritten for just £300. “It’s been worth it. I’ve had two definite orders from that,” says David.
As the van is used soley for work purposes, there’s no van tax payable. While all expenses can be claimed against the company’s profit and loss account.
As to the future, David acknowledges that within two years he’ll need to change the Nissan. “I’ll probably go for a Mercedes or a Volkswagen this time. I’ll also consider contract hire if it makes the van more affordable or the process of acquisition easier,” concludes David.
The advantage to David of using HP was:
- Easy to arrange at dealership
- Structured payments over 36 months made it affordable
- Interest on monthly payments charged to profit and loss account
- Tax allowance on capital cost of vehicle
- Ability to reclaim VAT on purchase
You can find out more about David’s specialist lighting supplies by visiting the www.david-rose-lighting.co.uk website.
