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Van contract hire - is it the right option for you?

Date Published: 23rd September 2009
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Author: Shaun Mcpherson RSS Views: N/A PRINT ASK ABOUT THIS ARTICLE
When looking for the best vans on the market you can easily dive into the sea of supreme choices. There is everything for everybody - great technical features, models with all sorts of extras and exclusive brand that are the dream of every driver. However, when it comes to prices and payment plans the whole venture becomes a little less enthusiastic. But do not worry - with the proper research and advice you can always choose the best option. In this article you can read more about the van contract hire option - its pros and cons and what businesses it is most suitable for. Making a well informed decision is vital for securing the prosperity prospects for your firm.

Firstly, the van contract hire option is very beneficial for simply financial reasons. As every technical asset the van is depreciated over time because of its permanent use. In fact, most vehicles, despite their exclusive features and sustainability, are not going to be used as efficiently after five, three or even two years. Thus, the option of contract purchase, which offers similar monthly payments, is automatically becoming a burden. This is because you would have to keep a vehicle that might be useless or at least not worth what you have invested in it. With the van contract hire you will not incur any loss of value as practically the vehicle is owned by the van dealer. Moreover, as the van is their property the maintenance plans offered by most firms in the field is very affordable and reliable. Your business operations will be more efficient in terms of both costs and management. If your firm requires more vans, the contract hire maintenance plan will allow you to save on the number of employees and their training apart form sparing you time and money for fixing the actual problems. So, if you are planning to develop and expand your business, the van contract hire is a superb option.


Of course, everything comes at a price. As already mentioned the monthly instalments for van contract hire are usually similar to and even smaller than the ones paid with a contract purchase. However, you should have in mind that there is a fixed mileage per annum that you are paying for, included in the contract, so you would have to pay extra if you overuse the vans. When opting for a van contact hire you are making a strong binding commitment that you will not be able to get out of prematurely. If you decide to get out of the deal before the end of the set period you will have to pay immediately the total sum of the remaining instalments and additionally more than 85% of this amount. The percentage figure is an average, so you might get charged even more. Thus, the careful preparation is a must if you want to be cost efficient.


Make the best van contract hire choice based on broad information and long run planning.
Tags: prospects, pros and cons, time and money, prosperity, choices, models, business operations, all sorts, vans, sustainability, instalments, maintenance plan, technical features
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Chris Marks
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