If you are a small business owner with a product or service that requires you to move around a lot then you have no doubt been considering buying a van, or even a fleet of them if you have a larger team. Perhaps you already have one and may be considering an upgrade or replacement. Before you do anything else, read on!
There are benefits to owning a van or fleet outright, but do they outweigh the downsides? Have you thought about how hiring out a van or fleet may actually be more beneficial for you or your business? This month, we explore the advantages to help you make the best decision for your business.
The economics of van hire
Buying a brand-new vehicle or fleet of vans will look good on your balance sheet, and you could even find yourself getting a tax break from the government. However, on the flip side, you would have just shelled out a lot of money that you will never get back in full, as depreciation will kick in from the moment you drive off the forecourt. The residual value of vans is also currently uncertain.
When buying your own vehicle, you will also need to take into account all the costs that are associated with managing it: road tax, insurance, breakdown cover, MOTs and servicing. If you plan to regularly drive into Central London in a non-compliant vehicle, you will also have to fork out for the Ultra-Low Emission Zone charge and the Congestion Charge. Before you know it, things have added up to a good chunk of money.
Renting a ULEZ compliant vehicle will save you from finding cash for these costs, allowing you to transport your commercial goods from A to B, with only the journey to think about! As an added financial incentive, if you are leasing a vehicle exclusively for business use then you are eligible to claim your VAT back, and your lease costs can be tax deductible.
In today’s market and with a likely recession approaching, nothing is to be guaranteed. The option of renting a vehicle for your business provides you with reliability, without needing to make a commitment. This way, the additional pressure of the costs associated with vehicle maintenance can be relieved from your responsibilities. That responsibility is passed on to the hiring company and it is in their best interests to have reliable and up-to-date vehicles for their clients. Many hire companies, us included, will also have breakdown options to reduce the time you spend looking for a way to get to where you need to go should the worst happen.
Availability when you need it
Following the COVID-19 pandemic, the world of motoring has faced a solenoid shortage. With no current insight into when this shortage will come to an end, the ability to purchase new vehicles will likely become more and more challenging. As of today, you could be looking at a waiting time of 12 – 18 months when buying a new van. Whether you want it to be for the long- or short-term, van rental can be the ideal solution for your business’s transportation requirements.
As flexible as you are
Van hire gives you the ultimate flexibility when you need it. Want a bigger van for a larger job? Need to downsize during quieter periods or scale up quickly after winning a new contract? It’s not only possible, it’s easy to do. It also provides you the opportunity to drive in newer and more efficient vehicles, without having to sell or trade in your purchased van.
If your business is in need of a van, or if you have any enquiries about our vehicle rental service, talk to our Pace Van Hire team. We will help you explore the options and find the best solution for you and your business. Start by giving us a call on 020 7277 9853 and we’ll take it from there.