Leasing vs Buying a Minibus: What’s Best for Your School?

In her previous article, Irina Brown got us on the right track when it comes to minibus purchasing. This month, she takes the wheel again to break down the benefits of leasing versus buying

When a school is looking for a minibus, there are typically two main options: leasing or buying. Each has its own set of advantages and disadvantages, depending on the school’s needs, budget and how they intend to use the vehicle.

In many cases, leasing offers greater flexibility and convenience, especially for schools looking for a hassle-free option. On the other hand, buying might be more cost-effective in the long run, particularly if the vehicle will be used frequently, over longer distances and kept for many years.

Leasing a Minibus: Flexibility and Less Hassle

When you lease, you essentially rent the vehicle for a set period (usually 2 to 5 years), with or without the option to purchase at the end of the term. One of the main advantages for schools is that leasing allows you to avoid the substantial upfront costs of buying a vehicle outright, freeing up funds for other essential expenditures. Plus, you won’t need to worry about the minibus’s depreciation over time, as you’re only paying for its use.

Leasing also provides flexibility, letting schools upgrade to newer models as their needs evolve. This can be particularly beneficial for schools that want to stay up to date with the latest safety and accessibility features. With the ability to negotiate affordable payment plans, leasing is often tailored to the school’s budget, which is always a bonus when the finances are tight.

Additionally, leasing arrangements typically come with fixed monthly costs, making budgeting and financial planning much simpler for schools.

Maintenance: Let Someone Else Worry About It!

Many leasing agreements also include maintenance packages, which means during the lease period, you’re likely not responsible for ongoing costs such as MOTs, servicing, repairs, roadside assistance and regular safety inspections. However, in most cases, the school will still need to cover insurance for the leased vehicle. The maintenance package can also help simplify administrative duties related to managing the minibus, so it’s one less thing to worry about.

That said, one downside to leasing is that schools typically cannot modify or customise the vehicle. There may also be restrictions against letting the minibus out to other schools or organisations for a profit. So, no renting it out for birthday parties (unless that’s your school’s new side hustle).

At the End of the Lease: The Freedom to Choose

At the end of the lease term, the school has a few options: either renew the lease, swap the minibus for a newer model, or simply return the vehicle. This frees the school from the long-term commitment of ownership, allowing for a fresh start without the hassle of selling or dealing with an old vehicle.

Leasing requires a lower upfront cost and offers fixed, manageable monthly payments, but the school does not own the vehicle. Maintenance is often included, and there is no risk of depreciation, though mileage restrictions may apply. At the end of the lease, the vehicle must be returned or the agreement renewed, providing flexibility.

Buying, however, involves a higher initial investment or financing but results in full ownership once payments are complete. There are no mileage restrictions, but the school is responsible for maintenance, and the vehicle will depreciate over time. Once any loan is repaid, there are no further payments, and the vehicle can be kept or sold as needed.