Investment Portfolio: Minibuses - to Have or to Hire?
Like any vehicle, a minibus can either be hired or bought. Each approach has its merits and, just as importantly, its pitfalls. It is nevertheless possible to make the right decision and all it takes is the consideration of a few questions.
Which is the cheaper method?
That depends on the type of use you intend. Suppose you only need a minibus infrequently. Road tax, insurance and maintenance costs are ongoing, regardless of whether the minibus is in regular use. Hire costs mount up too but for infrequent use, hiring is the more economic option.
I often use a minibus, should I buy one?
Perhaps but again, it depends. Can you accommodate a minibus? Storing a large vehicle can be tricky and on-road parking, even if permitted, isn't the most secure option. Can you look after one? Servicing and maintenance are essential to the health of you and your passengers as well as to that of the vehicle. Such things cost money, over and above everyday costs and are covered in hire rates.
Supposing I also run it as a passenger car?
Good point. A minibus can do double duty, within limitations. The downsides concern size and cost. Can you live without using multi-storey car parks and parking at a distance from your destination? Can you afford to run a vehicle that is thirstier than a car? Will you carry more than three or four passengers often enough to warrant the outlay?
On the upside, you'd never be stuck for a vehicle that can carry a lot, be it passengers or goods. Minibuses are extremely capacious, which can come in very useful.
I'd like to buy a minibus. What about a new one?
Another good point but one with a trap into which many have fallen with a loud clatter. A new vehicle, minibus or otherwise, is a tempting proposition, especially in the current economic climate. That said, any new vehicle will suffer a staggering loss in value the minute it turns a wheel in your ownership. Depreciation must be factored in to your calculations unless you know for certain that you will be keeping your minibus for a long time. If buying new, you can use the economic downturn to your advantage; minibus dealerships are unlikely to be fighting customers off so your business will be more than just important to them. Use this in your negotiations and visit more than one dealer.
What about a used minibus?
More traps loom here but protection is to be found. All motor dealers have to offer a measure of protection to their clients, including HPI (vehicle history) checks that will reveal any outstanding finance and unsavoury history in a minibuses' past.
As in any secondhand vehicle purchase, the rule is caveat emptor - buyer beware. Should the vehicle be young enough to have any remaining manufacturer's servicing and/or warranty cover, it's a good bet. Most importantly, it should have a full service history, with the stamps to prove it has been serviced at a factory-approved concern. If you doubt your vehicle choosing skills, look for 'vehicle inspections' in Yellow Pages: the major motoring organisations offer this service and a professional report represents money well spent.
So, should I hire or should I buy?
Easy. If your costs for hiring minibuses in a given year are more than what it would cost for the payment and upkeep of a minibus of your own, the answer is obvious. Good hunting!
About the Author:
Louise Slee is a Web Marketer and driving enthusiast for over 25 years, with no penalty points to date! See her articles at Minibus Club where she imparts some useful driving and travel tips when you are out and about in your minibus
Article Marketing
6 people like this article
