Van Contract Hire for Businesses

HOW YOUR BUSINESS CAN BENEFIT FROM VAN CONTRACT HIRE

Commercial vans are a significant expense for any company, big or small. Between maintenance, security systems, and monthly payments, many businesses opt for an older, cheaper van to save on money; however, the older the van, the more problems you are likely to encounter. Without knowing how the van was treated by its prior owners, there is no way to assure reliability.

vehicle van

HOW YOUR BUSINESS CAN BENEFIT FROM VAN CONTRACT HIRE

To save on transportation, many companies are shifting to van contract hire, which offers many benefits. First, you are not paying as long or as much for a vehicle, and once you are done with it, you are not responsible for finding a buyer; you simply return it to the dealer.

Fleet Management

Many van contract hire companies offer fleet management, which means that they oversee all of the work that goes into the vans that they lease out to your business. This includes maintenance, parts replacement, MOT testing, and vehicle assistance. However, some of these options are included at an added cost, so when choosing a van contract hire company, ask what is covered in the lease and what kind of add-ons you can tack on at an additional price.

GAP Insurance

When signing up for a van leasing contract, it is advised that you add GAP insurance. This insurance protects you, the lessee, from having to pay out money on the vehicle if the van is totaled anytime during the lease. Although it comes standard in many lease vehicle insurance policies, the GAP option is not automatically included in all insurance packages; ask your van contract hire company if they offer it.

Normally, insurance only covers the resale value of a vehicle, and since vans depreciate in value over time - in fact, about 30 percent in the first 3 months - you can find yourself stuck paying the difference between the resale value and the remainder of the leasing cost.

With the low costs and risks involved in van contract hire, many businesses that rely on van fleets to conduct business are shifting to this transportation option. By reducing overhead and liability for your own company, you can devote funds to more pressing business expenses than vehicle upkeep. Most van leasing companies will offer a wide range of vehicles as well as makes and models; from refrigerated vans to minibuses to pickups, you can find a brand-new van to suit your company?s unique needs.

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