Flexible rental can lead to huge savings and is like having vans on tap. How? Well…
- You only pay for what you use.
- They are always fresh (the average age of a vehicle in on our fleet is just 22 months!)
- You can turn the supply on or off, as and when you need to.
So, why would you want flexible hire vans as opposed to paying for what you need up front? Here are three big reasons:
1 Vehicle availability and needs can fluctuate
Not only can the lead times on purchasing vans be high, it is easy to fall into a situation of either having too many vans or not enough.
- Scenario 1: You’ve just won a big contract
- If you need extra vans for a specific job, flexible hire could be the perfect option.
- The ability to hand back the keys when your vans are no longer needed can reduce the risks of having unused vans.
- It also means that you never have to turn down work due to not having enough vehicles, particularly if you are working under tight time constraints.
- Scenario 2: You’ve noticed predictable peaks and troughs in demand
- Flexible hire is suitable if the number of vans you need changes in a predictable way, as might be the case with seasonal businesses.
- With the ability to scale your fleet size up or down in a short amount of time, you can react to the market and also plan ahead for busy or quiet periods.
- This means having the vans you need, when you need them, and not paying for vans you don’t.
2 Having capital might be better under certain market conditions
Flexible hire can free up your cash flow whilst you monitor unfavourable market conditions or legislation changes.
- Scenario 1: There is economic uncertainty
- With the economic uncertainty surrounding Brexit, who knows what the future holds?
- Since there are no significant upfront costs with flexible hire and payments are spread out, less capital is locked down in your vehicles.
- Not having capital tied up in your vans allows you to react quickly to the market.
- It also frees up your capital to spend on growing the business.
- Scenario 2: Planning for regulatory changes
- Legislation changes could mean being committed to vehicles with unexpected costs.
- One recent example would be London’s ULEZ which introduced additional charges for vehicles that did not meets its stricter emission standards.
- With the government’s goal for low-emission vehicles under their Road to Zero policy, more changes will be on their way.
- Flexible hire is a way for businesses to avoid investing in vehicles that might get left behind.
3 Flexible hire can be good for your finances
With competitive rates compared to daily spot hires, flexible hire can be a cost-effective way to source vehicles.
- Scenario 1: You want newer vehicles
- The short renewal cycles of hire vehicles mean vans that are only a few years old at most. In fact, the average age of a vehicle on our fleet is just 22 months.
- Newer vehicles are less likely to suffer downtime, and this means you can keep your business moving
- Scenario 2: You would benefit from the cash flow
- When using hire vehicles exclusively for your business you can claim back 100% of the VAT.
- Flexible vehicle hire also means that you are not tied into lengthy contracts where you could be subject to early termination penalties.
- Scenario 3: You want to trial new vehicles
- Businesses looking to invest in a new vehicle type, like hybrid or electric vehicles can use flexible hire as a way of testing the water before committing to purchase.
How can Northgate help?
Our flexible hire option is a cost-effective way to scale your fleet size up or down.
With servicing, maintenance and breakdown cover included in one simple regular payment, we deliver more than just a vehicle to your door. Get the vehicles you need, when you need them. Return them when you don’t. That’s Vanonomics.
Whether you need one or 1000+ business vans, our expert fleet consultants are on hand to help you meet your business needs.