Easy leasing
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I should like to comment on some of the points made in a recent article "Easy teasing for those who could buy."
Leasing, hire purchase and other methods of capital provision operate on a similar time scale to full-life contract hire. Any reluctance to commitments for a five-year contract hire agreement would similarly apply to leasing and hire purchase.
There are fundamental differences between contract hire and rental, even extended rental, through provision of far more extensive facilities. For example, rental vehicles are normally already in the renter's fleet, and are therefore not new, and carry his livery: contract hire vehicles are invariably new, purchased (and possibly designed) specifically for the contract and painted in the customer's livery.
The services supplied on contract hire range from fuel, garaging and washing, through the supply of drivers and replacement vehicles, to the provision of entire distribution systems including warehousing, materials handling, stock control and management.
The change in BRS contract hire relating to contract life provides for a shorter term than full life where the vehicle is obtainable on a buy-back basis: this is in addition to a facility which has always been available from BRS for shortlife contracts, namely where the customer is prepared to guarantee the sale value of the vehicle on termination.
K. P. H. FIELDING,
British Road Services Group.