HIRE CHARGES FOR LIGHT VANS.
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" We have been invited to supply 7-cwt. vans on an annual contract. The weekly mileage is 200 and the customer will provide the driver. It is suggested that the charge should be £4 per week, plus 3d. per mile for excess mileage and a rebate of a Id. a mile for mileage not run. What is your opinion of this price? "
The figure you quote for the hire of 7-cwt. vans, namely, £4 per week for 200 miles, ex driver, should be satisfactory, also the proposed charges for excess mileage and mileage not run. In your contract you should stipulate that you should be able to exercise some control over drivers. Without that provision there is a risk that the vehicles would be over driven and your expenditure on maintenance increased.