Contract hire boom
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ACTIVITY in the truck contract hire business is nearing fever pitch nov.• that the new financial year is almost upon us.
The phasing out of first year capital allowances and the introduction of SSA P21 (which removes the "offbalance sheet" advantage of financial leasing) are the two factors that are behind the boom. There is talk of a predicted 22 per cent growth this year in the contract hire market.
The latest company looking for a share of this business is Longlease Contracts of Longton, Stoke-on-Trent. This company was formed a month ago by parent group Longton Industrial Holdings — Longton Storage and Transport is its distribution subsidiary.
Longlcase Contracts currently has fewer than 100 vehicles but is aiming at five per cent of the national market. which would mean a rise of several thousand vehicles.
Longlease intends to concentrate on the more specialised fleets such as tanker and refrigerated distribution operators. It is also keen on the purchase and subsequent re-lease of existing fleets.