All business’, whether a recent start-up or a long-standing commercial giant, are profit maximisers. This means that they strive for as few outgoings and expenses as possible, coupled with the largest revenue.
Background on Old vs New
When it comes to cutting back on expenses there are many avenues to take for a business; some may be very beneficial, such as bulk ordering stock and achieving an economy of scale to create an eventual lower price per product. On the other hand, there are opportunities for the short term cost savers to have a large negative impact in the long-run. This happens when a firm purchases an asset at a lower price than usual, creating a smaller expense; however within a short time frame, that asset becomes unusable due to its deterioration and depreciation. When this occurs the business will have to re-purchase the asset again, evidencing how the phrase ‘buy cheap, buy twice’ rings true!
Experienced business’ will know this cycle and look to incorporate ways of avoiding it, this may mean buying a new asset as opposed to an old one to elongate the lifespan and omit future business expenses (re-purchase, upkeep etc).
Benefits of buying new
This process of economical business transactions and reduced future expenses is something that LDV promote as a brand on a daily basis. They offer low priced vehicles with guaranteed 5 year warranty. The asset you purchase from LDV is very high quality and brand new, this means that it will do everything you could possibly need it to do, for as long as you need it! Alongside these benefits, the LDV vans are inexpensive for business’, starting at just £14,995 for a brand new van. This price is made even cheaper in the long run when the running costs are taken into consideration. Our article ‘Euro 6 0r Euro 5′ explores how weekly savings can be achieved by opting in for one of these vehicles.
All business’ should be aiming to secure new assets with low deterioration and low usage to ensure they achieve the best value for money and reduce their expenses for the longest time possible.
We hope this information was useful for you, if there is any other info you’d like about anything relating to LDV’s, please don’t hesitate to get in touch at 0800 049 9179 or [email protected]