Van Contract Hire Advice
Outlined below are a few direct benefits that a business could get from leasing their van fleet instead of purchasing.
You need to talk to your local dealerships and get the best quotes and negotiate the best rates but you should be able to come out with a good deal.
The car industry is struggling much more than it used to so it is definitely the time to get a bargain.
- The agreement that you determine with the dealer needs to include the warranty for that period of time i.
e.
if you agree a five year contract then you need it to have a five year warranty as well.
Also you need to work out how much mileage your vans will be doing each year because this could be included in the terms and you do not want to be paying excess fees for doing to many miles, so always think long and hard about this aspect. - If you are buying new then the warranty is never an issue apart from when going over three years.
If you are buying second hand then you need to know again exactly what warranty they are offering because you do not want to be paying for repairs and maintenance on top of the finance agreement. - By financing the van instead of purchasing it means that your capital is not all tied up in vehicles and so it will allow you to utilise this cash elsewhere in your business.
Also it allows you to be able to plan your next year's projections much more effectively because you know exactly how much your vehicle costs are.
This is very valuable if a lot of your business relies on vehicle transportation such as a courier company. - A great benefit of this is that you may also be able afford a much nicer model than you could afford to buy, which has great positive effects on the how presentable your van fleet is.
- The final positive benefit for your fleet is that at the end of your term you can do a trade in, which means that you will be able to trade in your vans for new versions and new models which again will keep your companies image look top quality.
If you can negotiate the right contract hire deal then it can work absolute wonders for your business from financial aspects but also from appearance aspects too.
You need to talk to your local dealerships and get the best quotes and negotiate the best rates but you should be able to come out with a good deal.
The car industry is struggling much more than it used to so it is definitely the time to get a bargain.
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