How can Fleet Hire can save your Business Money?March 28, 2014
Whether you run a delivery service, work in the trades or simply require your staff to be on the road a lot, your company will probably need vehicles to operate. However, there is a growing trend among business owners that require regular vehicle use to lease their fleet instead of buying brand new vans.
What are the benefits of hiring your fleet over purchasing it outright?
First of all, for many small and independently run businesses, the colossal outlay of buying a dozen vans could run into the quarter of a million pound mark – money that simply doesn’t exist in a lot of cases. Combine this with decreasing value and on-going maintenance costs over time, and this becomes far too unrealistic an investment.
Leasing provides a way of utilising new and efficient vans while still leaving capital to invest in the business, and many van hire companies will provide a range of corporate contract hire options to suit your needs.
Contract hire works as an agreement between a vehicle hire company and the hirer, based on a fixed lease period. Payments are usually monthly, and are based around both the retail price and the estimated depreciating value of the vans, with the vehicle returned to the leasing company at the end of the period agreed. Often the monthly payments fluctuate, as they may be based on the residual value of the van over time.
Leasing vehicles offers a number of other advantages as well as potential cost-efficiency, one of the main ones being convenience. Not only do you not have to worry about the sometimes complex buying and reselling process, you will also have much less to think about in terms of upkeep and maintenance. So long as you have a comprehensive insurance package, all repairs should be covered, and all you have to worry about is filling up the fuel tank.
The regular and fixed nature of the payment plan also allows you to accurately budget your business’s finances, as you will know exactly when and how much money will be leaving your accounts.
For those that will be relying on the leased vans for heavy usage, the monthly payments may end up being considerably more than those who only need transportation every now and again due to the depreciating value of the vehicles over time. However, fleet hire can still prove to be the most cost-efficient option, even over the course of a few years.
Here at Whitgift Hire, we provide commercial customers throughout the South London area with high quality contract hire options. With 24-hour national breakdown cover, Whitgift represents the best value option when it comes to running your company’s fleet. Our range includes modern and economic vans, minibuses and tipper trucks for specialist use, with our expert team able to tailor a contact to the specific needs of your business.
For more information, or to discuss your contract hire requirements, don’t hesitate to get in touch with Whitgift Hire today.