Hi Fellas,
There is a bit more to it, the best person to advise you is your accountant.
With contract hire, the van is a liability - not an asset, so the rentals can be claimed against your taxable profit. After a predtertimined time, the van gets handed back, and you start a new contract (without the option to purchase). This can be a problem if the van is likely to be abused during your ownership, as it must be above a certain standard to avoid charges.
With purchase, you can claim depreciation, and relief on the interest of any monthly payments, and the van shows as a business asset - and what you do with the van is entirely up to you (run it into the ground if you like!)
Then there's lease purchase with balloon, which gives you quite low monthly payments, but with a hefty payment at the end (which is NOT guaranteed to be met by the value of the van)
So basically, it's not really a one-size fits all solution - and you need to consider your own circumstances before making a decision.
Regards,
Ashley