Contract Hire (Van) Companies

[Gordon N]

I am looking into what benefits are to be found by opting for a contract hire van rather than buying outright. My current budget would allow for an older vehicle, and the last thing I need is constant maintenance costs. Having had a dig around the net I have found a few different companies serving Scotland, most of which include road tax, roadside assistance as standard in the monthly payments...

First what are your thoughts on contract hire, is it a good way to go?

Secondly, does anybody have any experience with this subject or some good contacts to try and fish out a bargain?

 

[Scottish Business Owner]

Hi Gordon,

One of my clients is a company which contract hires anything from a transit van to an 80 tonne crane. If you'd like me to drop you their details feel free to PM me.

You've mentioned a few of the contract hire advantages above in that most contract hire will cover road fund, mot etc. They will also cover maintenance that is general wear and tear but not where the user is at fault.

One of the main advatages of contract hire when just starting out is that (in most scenarios) it can be fully written off as a business expense. You have to weigh this up against buying the van yourself and claiming business miles into the company (I believe the current rate is 40p per mile for the first 10,000 miles and then 25p per mile afterwards). The other consideration is the commitment in contract hire which is likely to be 24 or 36 months. I guess the other part of it is image, would you rather have a slightly older van or a newer one to give a better impression.

The van market at present is very tough and i'm sure there will be lots of bargains out there. You are spot on though in saying the big variance is the vehicle maintenance and it depends on what risk you want to take here. I'm sure I can get one of the guys to give you a quote for what they can do so please get in touch if you'd like me to do this

 

[Adventurelife]

I have a range of vehicles including 3 year hire, purchased, 2 year hire and short term hire.

There are advantages and disadvantages to all forms and it comes down to your personal requirements.

If you are a new business you may want to consider short term contract hire. You will pay a little bit over long term but if you are not sure how things will go this is a good route as you can hand it back at any time. I use this route April-Oct when I need extra vehicles but do not want them on longer hire as they would do nothing over the winter.

I use Ally at A1 Hire Perth for the short term. Service is excellent and has a large range of vans and will alter vans to suit your requirements.

For longer hire search the net and haggle hard. The deals that are available now are the best I have ever seen. So it the cost of outright purchase though so again it all comes down to choice and personal circumstances.