Posts Tagged ‘commercial vehicle leasing’
Is van leasing better than van rental?
The commonest question asked over and over again to me and my colleagues is which route to take: rental or leasing on a vehicle. What are the advantages of leasing compared to rental agreements?
It is very simple really. When taking out a lease on a vehicle, there is a wide choice to consider, from the familiar brands and makes on offer. You can choose what colour it will be, what options you want and what size and specification you require. You as a customer are spreading your payments, usually monthly, over a set period of time, resulting in a cheaper deal than renting the same vehicle. This is because the finance company knows how much money they will be earning from customers because of the commitment the customer has made.
Because of the volume of vehicles that are turned over, we are able to get competitive prices and pass these directly to the customer. The net result is lower up front vehicle prices to the customer, helping to improve customer business cash flow. The optiion is there for the customer to own or to sell the van when the finance lease expires. A customer can then keep any equity that is earnt when the vehicle is put up for sale.
One extra plus point is the availability to customise the van with your own logo and company details, and additional bits and pieces like roof and interior racking.
Renting the vehicle is the alternative, but at the end of the deal when you have had enough, you will have nothing left to show. In this current econmic climate it surely doesn’t make much sense financially!!
To find out more, see how we can benefit your business with our unique van contract hire offers. Fiat Van Leasing and LDV Van Leasing are just some of the options out there to choose from.
White van man gone green
Could van drivers be inspired by the likes of the hybrid or the Smart car, and embrace green technology. A large quantity of van owners are sole-traders, or are fleet members.
If these larger companies operated a revolving policy and replaced a few vehicle at a time, they would be making a substantial cost saving. It would be a sensible policy to gradually move away from the old technology, whilst embracing new technology. The fuel bills generated by these companies must be alarmingly high. The running cost on business is likely to be substantially reduced by switching to green policies and technology.
The reduction of cost is important for young businesses, who would be doing themselves a favour by adopting this option. It would be difficult to expect an existing sole trader to trade in his or her reliable transport source for something experimental. If it is shown to save precious cost and help the environment at the same time, then it has to be explored.
By driving a van like this you are making your positive contribution, which is a good thing and is what every person needs to be doing. What is required is a total change in the way the whole world thinks, and uphill battle but by no means an impossibility. It will take a concencus to reject the old environmentally unfriendly way of doing things before real progress can be measured.
In my opinion, van leasing has been an option out there for many years now and can provide a much cheaper way to achieve what everyone wants. Whether or not Fiat van leasing and Iveco van leasing are going to be involved in the process remains to be seen, but if there is demand then they are sure to recognise this and follow the pattern!
How to become a white van man?
How do you identify the main criteria to obtaining recognition as a ‘white van man’? Obviously you have to own a white van for starters, but even this may exclude you from joining this club. I will list some of my own experiences, which would guarantee entry into the club for anyone.
Complete disregard for other road users
Now, this is vitally important if you wish to become a member of this club. It cannot simply be a slight bending of the rules or a deliberate misinterpretation here or there. There has to be no abiding by the rules! If you are driving down a narrow county road, for example, you cannot safely negociate passage past another vehicle. You would have to force the other car to stop to let you pass, or more suitable, run that person right off the road. If you can manage to do this without the slightest pang of guilt, then you are well on your way to earning your spurs.
Dominate your steet with your vehicle
Nowadays in most towns and cities the councils have woken up to the fact that lots of money can be made by forcing the population to pay for parking. Now that the parking space outside your house is premium real estate, the permit doesn’t even guarantee slotting your car anywhere near to where your live. But where does ‘white van man’ fit into this? Our bloke probably owns more than one or two cars and parks the van outside his house too, consuming more space than anyone else in the street. If it is possible that you can do this and not give a stuff about your neighbours, then you will pass with flying colours!
If you wish to qualify as a ‘white van man’ check out commercial commercial van leasing has provided a simple way of getting hold of a van. Fiat van leasing and Iveco van leasing are just some of the options out there to choose from.
Van Leasing Supports Financial Planning
Van and car leasing is currently helping many businesses to weather the current economic crisis. Many businesses have been forced to look carefully at their cash flow and capital expenditure. Commercial vehicle leasing provides businesses with an effective way to ensure that they have the transport they need with fixed, known monthly repayments.
Van leasing and contract hire have become increasingly popular as businesses recognize the benefits of leasing over outright purchase. A few of these advantages are:
- Fixed, known monthly payments enabling businesses to accurately forecast their finances;
- Low initial down payments mean that businesses can secure brand new, top specification vans for very little initial outlay;
- Maintenance and servicing can be included in the lease price which can save a lot of headaches;
- Leasing is a great way to lessen the impact of depreciation;
- The leasing company can often provide commercial vehicle insurance at very competitive rates;
- No problems disposing of vehicles at the end of the lease period;
- There are tax benefits to leasing as it is classed as rental which means that 100% of the lease charge is tax allowable.
Although van leasing is generally advantageous to businesses there are some additional considerations that should be borne in mind. One thing you may need to do is accurately estimate your anticipated mileage. Some contracts impose penalties if the anticipated mileage is exceeded but there are contracts that provided unlimited mileage.
Another important aspect of the contract to consider is exactly what is included in the maintenance agreement. Some lease contracts include replacement tires and even replacement windscreens, but always check the details.
Always gather several quotations when shopping around for a good van leasing contract and compare them in detail. Always be certain that you are comparing the exact same vehicles with all of the same options.
Like company car leasing, van leasing is increasingly recognized as a financially viable option for providing a business with the transport needed to stay in business.