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For many businesses that are just starting out, funds can be tight and it can be tough to know what money really should be spent on.
Vehicles are one such asset for which expenses can quickly add up, but advances in technology, and the van and car hire sectors more generally, can help businesses to save.
Hiring commercial vehicles removes the need for a large initial outlay and could be a cost-effective alternative to purchase depending on how long a vehicle is required for.
According to figures from the British Vehicle and Rental Leasing Association, the number of vans being rented in the UK continues to jump year-on-year.
The rental sector is worth more than £5 billion to the UK economy, and purchases around 400,000 vehicles (cars and vans) per year.
According to BVRLA Chief Executive Gerry Keaney, renting “delivers flexible, affordable transport to millions of people and businesses”.
More vehicles are also being rented as businesses with seasonal requirements and small workforces see the benefits.
It’s not just the initial outlay that a business is protected from when renting or leasing, as maintenance and upkeep costs are also not required.
Nearly every vehicle will depreciate in value over time too and that is another factor that must be considered by any business prior to purchase.
There is a certain degree of flexibility and simplicity when it comes to increasing or downsizing the size of a vehicle fleet when hiring. A business can find the vehicle that best suits their needs, often when they require it and at short notice.
Short term van hire can provide a vehicle for an essential job or for a matter of days, while longer term hire is available for on-going projects, although it can cost more than hiring via a contract for a set time frame.
Any business that opts to hire should also be able to access the latest models of cars and vans, in turn, increasing the quality of service that can be provided.
Not only does a business have transport it can rely on, but the majority of hire firms will also provide support should something go wrong.
Figures from UK van rental firm Northgate suggest that UK firms collectively lose out on around £2.4 billion every year as a result of vans not being operational.
Their study claimed that the cost of a commercial vehicle not being on the road is around £800 a day and that the average time needed to sort an issue is four days.
That means a business can lose revenue totalling an average of £3,200 every year, although in the case of rental vehicles, a replacement is often provided on the same day.
On top of this, relying on a replacement from a hire company can also help to limit any reputational damage that can occur when a business has a van off the road.
One aspect to consider if you do want to hire vehicles for a business, is van hire excess insurance. This type of insurance increases the protection on the excess you would need to pay in the event that the van be damaged or stolen.
Get a quote today and see how the added extra can provide peace of mind when hiring a car or van.
Date Created: 04/07/2019