When the time comes to pick up a new van, there are a number of decisions which need to me made, not least, whether you need to buy it outright or whether a period of rental would be better for your circumstances.
The traditional route of purchasing your chosen van outright with either cash or finance has now been supplemented by the option of contract hire.
Buying a Van Outright
One of the key advantages of buying a van outright is that you have no additional outgoings in order to buy it, i.e. monthly repayments.
This makes it easy to budget over a long period. The other benefit is that there is a very good chance that it will be sold with a warranty which helps to guard against any problems with the van.
A further advantage of actually owning your van is the fact that you can do almost anything you like with it (legally of course!!) without restriction.
For example, if you cover a very high mileage there will be no additional costs other than servicing and fuel. This may not be the case if you hire a van because with some companies, you may find that mileage restrictions are imposed as part of your contract.
Opting for a Contract Hire Agreement
One of the most popular alternatives to purchasing a van outright is entering into a contract hire agreement.
This type of agreement not only leaves much of the worry about the upkeep of your vans with the company you are hiring from, it also offers much greater flexibility with the number of vans on a fleet as they can be replaced or reduced as needs dictate.
Another positive aspect of contract van hire is the fact that you do not have to concern yourself with what to do at the end of the van’s life. The van will simply be returned at the end of the contract and your only decision will be whether to replace it with another van via a contract hire scheme or look to use a different method to fund the acquisition of your new van.
If you are not sure which option would offer the best solution for your circumstances, please give us a call and we will be happy to run through your options with you.