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If you’re going to be using one or more vans for your business over an extended period of time, you might assume that the best option is to buy them outright. However, there are several benefits to long term van rental that could be the right solution for your vehicle needs. In this guide, we’ll be going through the key benefits, so you can gain a greater insight into long term van rentals and determine what is most suitable for you.
Long term van rentals have soared in popularity in recent years, but some people still make the comparison that hiring a vehicle is similar to renting a house. This means that they believe that it may not be worthwhile renting as you don’t own equity like when you buy a vehicle. However, this doesn’t account for the depreciation you will experience when buying a van. As well as the fuel you put in, depreciation is often the biggest cost associated with vehicle ownership, particularly if it is new or nearly new.
By renting the van you need long term, you can avoid a big hit on your costs, as typically van owners encounter between 15% and 35% depreciation on the vehicle just within the first year. Not only that but after three years, it is likely to be worth around 60% of its original value depending on the market. This makes longer rentals a good option to at least consider, before you make the decision to buy.
One of the biggest benefits of long-term van rental is the convenience of not being responsible for the maintenance. In most cases, the cost of wear and tear is incorporated into your agreement. Therefore, it is the responsibility of the lease company to make any repairs that are needed. The only exception to this is if you have an accident in the vehicle and are obligated to pay the excess on the insurance.
Additionally, renting a van means you have the flexibility to not only choose exactly what fits your needs, but also have the option to upgrade or change vehicles if your circumstances change. When renting, your business is in a great position to maintain your vehicle or fleet and easily make adjustments based on the needs of your business and its evolution.
Naturally when you own a van, you will have to pay for any repairs that it needs, which is more likely as it gets older and continues to see regular use. Until the van has been looked at by a mechanic you can only estimate what the cost of the repairs might be. If it’s more than you anticipate, it could impact other business plans you have whilst money needs to be diverted into van repairs to minimise as much downtime as possible.
With long term van rentals, you will be paying a fixed cost, so you know exactly how much you’re spending each month and can budget more accordingly. Also, you might be able to get a long-term van rental without putting a deposit down, which would mean you avoid any upfront cost. This will offer a more cost-effective solution if you’re a new business looking to get started or you’re temporarily operating with reduced capital.
When making a significant upfront purchase like a van, whether it is a newer model or an older one, there is always an element of risk. If you find that the van isn’t right for your needs or there are more issues with it than you knew about, you could be stuck with a vehicle that has cost you money but isn’t in a position to be used in a way that earns back the investment you put into it.
On the other hand, with long term hire van rental options you can stability and peace of mind that you’ll consistently have a working vehicle that is suitable for your needs. You aren’t under any pressure to make use of the van if it’snot quite right, you could swap it for another model and make changes that work for your business. There is a nice security in knowing that you have an easy, adaptable solution that won’t demand a large cost or push you into a situation where you have to fulfil unneeded responsibilities.
As you can see, there are several benefits to renting a van long-term. If you’re looking for reliable and affordable van hire in Consett Croxdale Group can help. We have flexible rental options that can be tailored to the specific needs of your business and the length of time you’ll need vans for, whether it’s a day, a year, or longer. Book online today to get started and don’t hesitate to contact us if you have any questions.