Commercial Vehicle Leasing and Contract Hire Increases
Thursday 26 January 2012 Back to Blog
Many businesses are turning towards leasing and contract hiring their commercial vehicle fleets rather than owning commercial vans outright. The advantages are numerous and many industry experts feel that minimising business risks is the number one driver for the increase in demand for commercial vehicle leasing and contract hire.
One industry expert commented: "Many organisations are finding it difficult to raise cash from their lenders in the current climate. Additionally, those organisations that do have credit available do not want to buy vehicles today in the knowledge they may become surplus to requirements in a few months. Similarly, organisations do not want to commit to leasing vehicles on a three, four or even five-year contract.
"In such circumstances vehicle rental makes absolute sense with customers confident that they are able to return vehicles at any time depending on business circumstances without penalty. Consequently, we are seeing a high take-up for vehicle rental, particularly among SMEs which are perhaps most affected by the lack of credit availability.
"Flexibility is crucial in business and never more so than when companies are in the grip of a tough business environment and every penny counts as all corporate costs go under the microscope."
Leasing or contract hiring a commercial vehicle has always proved to make sound economic sense and given the current financial climate, it makes more sense than ever to avoid purchasing a commercial van and indeed a fleet of them through using commercial vehicle contract hire and leasing options.