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What are the benefits of leasing vans over outright purchase? 

There is less risk to your business – leasing vehicles means to­ balance sheet funding and fixed monthly costs. Leasing also minimises the amount of administrative burdens that running a vans requires. There is also the support and reliability that leasing cover and the ability to use cash for other business investments. 

Why do more than half the UK van operators still buy vehicles outright? 

Many (particularly smaller) van operators are unaware of the advantages of leasing and don’t believe it’s a viable option for operators other than large corporate fleets. Others see leasing as hire purchase and don’t think its suitable for their business. Where the benefits of leasing are not sold correctly, operators have a perception that there is a high risk of end-of-contract damage charges, and hold the view that it’s better to own their van, and run it into the ground which is a false economy! 

How do we support you?

Running a fleet of commercial vehicles is a complex task and becoming even more so, particularly in the light of increasing legislation, duty-of-care obligations and compliance management. For many operators, van fleet management is something that has to be done as a result of using their vans as business tools. In recent years, the role of a traditional fleet manager has disappeared in many companies. Consequently, we’ve seen more HR managers and procurement teams becoming responsible for van fleets, but it is not their core business activity, whereas it is ours. We can support your business with the information and systems needed to run an efficient and compliant van fleet. As part of our approach we fully qualify our clients’ fleet needs. As a result of such detailed qualification, we consider the type of use and fleet profile, in order to come up with the most cost-e­ffective solution for your business. 

Electric Vans

We’ve seen a rise in electric van enquiries and we always ensure that your business vehicle usage is thoroughly qualified before recommending an electric vehicle. Many fleets initially express an interest in running electric vans as an answer to reducing their carbon footprint, reducing fuel costs and ticking certain corporate ‘green boxes’. However, we always stress that an electric vehicle may look good on paper, but the full practicalities of running them, especially the infrastructure support have to be considered before committing to them on the fleet. 

What is the future for commercial vehicles?

In the short term, we see the future fuel of choice for the majority of van fleet operators will remain diesel. Some smaller vans are reverting to petrol of course, but as for true alternative fuels, there are so many external factors at play, including of course, government grants, taxes and infrastructure but each fuel source will have its application and usage depending on the job role. We see van leasing growing as a viable alternative to outright or hire purchase as more businesses develop their understanding of the advantages of leasing.

Fleet Financial | Contract Hire Vans in NI
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