VEHICLE LEASING
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Rental and teasing market is still growing
If there is a sudden upturn, hauliers are likely to turn increasingly to the rental and leasing market, and the BVRLA says there are already signs of this happening.
Head of communications Toby Poston says: Our members tell us that the number of vehicles on rent Is growing across all groups of vehicle and all business sectors."
Many companies are taking on longer contracts of five to seven years in order to get better terms, although flexible leasing where someone might rent trucks for 12-15 months in the knowledge that they can return them without penalty is also popular to meet short-term needs.
Hauliers who choose to rent or lease are likely to face higher rates, caused by an increase in truck prices, according to Richard Metcalfe, CEO of rental firm Burnt-Tree. But he says rental still makes sense.
"As manufacturing prices increase, so do operating costs for every method of vehicle acquisition, and rental is not immune from this pressure. Nevertheless, rental remains the most cost-effective route as it offers the unique ability to remove costs from any business with just one phone call.'
Hitachi Capital Commercial Vehicle Services says that, because of rising rates, it is advising customers to review their fleet and identify savings. Divisional MD Jon Lewes says: "For example, could you downsize the fleet?
Smaller vans are cheaper to buy and run and have lower carbon emissions, so
If you can use a smaller van to do the same job, you can save money and lower your CO2 emissions."