Van Contract Hire – What are the pros & cons?

van lease

When it comes to sizing up the van that’s best for your business, it’s worth remembering that there are various ways that you can pay for it.

Indeed, you might find that instead of buying one, a specially tailored contract van hire agreement or short-term hire will be more appropriate for you.

Whilst some businesses prefer to own their fleet of vans outright, others prefer to leave depreciating assets in the hands of others and rent their vans in a variety of ways.

In this article, we look at the perks of contract hire and how this model might be the solution for businesses who require the use of a van but do not have the means or desire to commit to a large-scale purchase. Armed with this knowledge, you’ll be able to work out if contract hire is the option for you, or if you’re better off with an alternative van rental model.

The reasons for van contract hire

The perfect solution for those who require a van for longer periods of time but do not want to go through the costly experience of buying one, contract hire no doubt offers the greatest convenience.

Besides having a van to use, those signed up to contract hire will often have all their maintenance and servicing taken care of by the provider. What’s more, if their vehicle is out of action, a replacement will be provided at no additional cost.

Ultimately, long-term contract hire offers a great deal of flexibility but does not lead to the ownership of the van once the agreement has been completed.

To give you the benefits of contract hire in bullet point form:

  • It offers hassle-free fleet management
  • You can create a bespoke agreement that suits your needs best
  • You’ll only pay a minimal upfront fee
  • All maintenance and servicing taken care of
  • Trade in or upgrade with ease
  • Depending on the provider, professional signwriting can still be added to the van

The reasons for other types of van hire and leasing:

Whilst contract hire does offer a unique series of advantages, there is always the option of leasing a van or using one on a short-term basis.

In the case of leasing, you won’t need to pay a large upfront payment and the monthly instalments will be quite low. What may cause some trepidation, however, is the fact that repairs are not always covered by the provider.

Short and long-term van hire also offer their own series of benefits. Short-term van hire, for example, is perfect for small jobs, but not so great if you need a van for an on-going project.

Similarly, long-term hire is great if you have a lengthy project that you’re working on, but will often be a bit pricier than a contract hire.

Having looked at how your business can enjoy the benefits of a van in a more convenient fashion, it seems that contract hire is certainly worth considering.

Of course, when it comes to deciding which is best for you, it’s important to ask if it’s vital that you have complete control over the vehicle, or if making some small concessions to sign a contract hire is likely to provide a more appropriate solution.