Funding for a minibus can be difficult to secure as a funder or lender will need a detailed report covering how you will fund the maintenance and running costs for your vehicle and they are likely to need evidence of how you will achieve this before agreeing to release funds. Issues that you may need to consider are:
- Maintenance costs - these include the cost of keeping your vehicle roadworthy along with general repairs and a contingency if any major repairs are needed.
- Fuel costs
- Insurance
- MiDAS Car & MPV Training for your drivers - this is a membership based scheme designed to enhance driving standards in small passenger carrying vehicles and cars.
- Health and safety obligations
- Licences
- Tax and VAT implications if the vehicle is used for non-charitable activities (leasing to third parties) - you need to seek expert advice on the potential charity law and tax implications.
- Storage and parking facilities
- Depreciation
- Lease or purchase repayments
Most funders will want groups to have explored these issues before they will consider helping to fund a vehicle and you should take appropriate advice before entering an arrangement to lease or purchase. The cost of buying and running a vehicle, as well as complying with legislation and regulation that governs community transport, can mean that for many local groups, leasing or renting a vehicle from a local community transport organisation – or having a joint ownership arrangement with one – is a much more feasible option.
Information about community transport is available from the Community Transport Association – a UK-wide member organisation that promotes excellence in community transport.
