Hiring a business van can boost operational efficiency and offer several cost-saving opportunities in a way that buying and leasing can’t.
In 2021, with Brexit and the COVID-19 Pandemic, hiring a van has become especially useful to businesses who are looking for the flexibility to see themselves through the economic uncertainty.
If you’re weighing up the pros and cons of hiring, purchasing, or leasing, it can still be difficult to decide which option is right for your business.
So, why would you want flexible hire vans as opposed to paying for what you need upfront? Here are three big reasons:
1 Get the vans you need, when you need them
Hiring a business van can enable you to get a vehicle much faster than buying or leasing. You can also often benefit from shorter lead times and less commitment, with hire vans available as you require them and the flexibility to hand back the keys when you don’t.
- 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 Keep cash within your business
Hiring a van typically requires a far lower deposit than buying or leasing. And with the costs spread out over the rental period of the van, you can keep hold of the cash or use it to invest in other areas of your business.
- Scenario 1: There is economic uncertainty
- With the economic uncertainty surrounding Brexit, hiring a van can provide the flexibility to add or remove vans quickly.
- 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.
- London’s ULEZ 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 and most likely in the form of Clean Air Zones (CAZ).
- Flexible hire is a way for businesses to avoid investing in vehicles that might get left behind.
3 You only pay for what you use
The flexibility of vehicle hire can be a cost-effective way to source vehicles.
With being able to hire a business van for the time periods that suit your needs – whether that’s one day, a month, a year or more – you can choose a level of commitment that fits with the way your business operates.
- 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?
We provide hire packages that are perfect for meeting day to day needs, specific jobs, or long-term requirements
Our flexible hire option is ideal for businesses looking for a van for 3 months or more , whilst 12months+ is perfect for businesses who are looking to commit 12 months or more.
With servicing, maintenance and breakdown cover included in one simple regular payment, we deliver more than just a van.
Whether you need one or 1000+ business vans, plain white or customised, our expert fleet consultants are on hand to help you meet your business needs.