Business owners are often faced with the decision of whether to buy or lease a works van. Traditionally, most businesses preferred to own their own fleet. However, the benefits of van leasing enables companies to take advantage of the cost-savings, as well as convenience offered by long term sprinter van rental.
Even so, long term van rental is not a solution that works for all businesses. The tradesman that can benefit from a customised storage system, for example, will be hampered with a rented van. You won’t find a van hire that is tailored with van racking systems that meet your storage needs.
Before deciding whether a long term van rental is your best option, weigh up the pros and cons.
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Long Term Van Rental UK: Pros
Van rentals in the UK more than doubled during the lockdown. Given the advantages of renting a van, the trend may continue. The pros of long-term van rental in the Uk include:
Convenience and Flexibility
The biggest advantage of renting a van is that you are not responsible for maintenance. The cost of wear and tear is built into your contract. Any repairs that are required to the vehicle, are the responsibility of the lease hire company. The only exception is if you have an accident and have a responsibility to pay the excess on the insurance.
Lease hire firms will also arrange servicing and MOT. Whilst the van is at the garage you will be given a replacement vehicle. That means you don’t need to take a day off from work whilst you’re without wheels.
Easier Cost Management
When you own a van, you should expect to pay for repairs. These unforeseen costs can only be estimated. If you underestimate the cost of repairs, owning a van can impact your monthly spending and scupper other plans.
Lease hire agreements on long term sprinter van rentals have a fixed monthly cost. You know exactly how much is going out each month and budget accordingly.
Long term van rental with no deposit also means there are no upfront costs. Renting a work’s van is, therefore, a cost-effective solution if you’re strapped for capital.
Some lease hire contracts also offer businesses and sole traders discounts on long-term van rental options. VAT-registered businesses usually avoid paying the 20% VAT. The van must only be used for business purposes, however.
Long Term Van Rental: Cons
There are several types of long term van rentals, some of which can be restrictive for business users. Common issues include:
Mileage Restrictions
Lease hire firms limit users to a pre-determined number of miles. If you expect to cover more miles, you will be obligated to pay a higher leasing fee. If you exceed the contracted mileage limit, you will have to pay a penalty.
Penalty charges are typically excessive so check the penalty clause and weigh up the cost of paying a higher monthly premium. Otherwise, penalty charges may negate the cost-effectiveness of long term van rentals.
Upgrade Deposits
Whilst it’s possible to lease a long term van rental with no deposit, paying a deposit will bring your monthly fee down. This deduction will be determined by how much deposit you pay.
Whilst deposits are the ideal solution for businesses that have the initial capital, the drawback is that you have to deposit every time you upgrade your contract. If you opt for a no-deposit lease, you will not be subject to renewal deposits but will pay more in monthly fees.
No deposit long term van rentals do present a popular alternative, but you could end up paying more in the long run. Before entering into a contract for a long term van rental, get quotes for a no-deposit deal and a deposit lease.
Is a long-term van rental the best option for your mobile workshop?
