Business Benefits for Van Contract Hire
Business benefits for van Contract Hire
For most big and small companies, hiring commercial vans is a significant company expense. As the company also has to bear other business running expenses like maintenance, monthly payments and security systems, many companies today feel it’s cheaper hiring an older van.
However little do they know that the older is the van, the more problems it gives. Moreover, without your knowing how the van was previously treated by its owners, you can never assure its reliability.
Many companies today thus prefer van contract hire to cut down on running costs and the many benefits it offers. The first benefit is that you do not have to pay that long or much for a vehicle. Moreover, once you are done with the vehicle, you do not have to find a buyer as you just have to return it to the dealer.
Takes care of van maintenance and part replacements
Another benefit is that most of the van contract hires companies practice fleet management wherein they are responsible for all the work that goes into the vans they lease to your business. This work includes maintenance, vehicle assistance, parts replacement and MOT testing.
At times, some of these options may be included at an additional cost. Ask a van contract hire company what is covered in the lease and what add-ons you can avail at an additional price before hiring the company.
GAP insurance coverage
Make sure you add GAP insurance when you sign up for a van leasing contract. With this insurance coverage, you the lessee need not pay any money if the van is totaled anytime during the lease period.
While this insurance coverage is a standard in many lease vehicle insurance policies, it is not automatically included in an insurance package. So ask your van contract hire company if it is included in their lease package.
Moreover, insurance also covers your van’s resale value. As vans depreciate in its value over time, about 30% in the first 3 months, you end up having to pay the difference between the van’s resale value and the lease remaining costs.
Money used for other expenses
It is the low costs related to van contract hire that has prompted many businesses that rely on van fleets to run their businesses are today opting for this transportation option. The money saved with the reduction of overhand and liability in your company helps you devote more funds to other business expenses and requirements.
Many van leasing companies today offer various vehicles of various makes and models which range from vans to pickups. You are sure to find the right, brand new van to lease for your business.