The Society of Motor Manufacturers and Traders recently reported that van sales have dropped off significantly in the latter part of 2017, with many people switching to hiring vehicles instead. So, what are the key predictions for vehicle hire in 2018?
Hire or buy?
Hire, rather than purchase, of vehicles is predicted to continue in 2018, with peaks seen around key sale times such as Black Friday and Christmas, when demand increases significantly and businesses need to expand their fleet for short periods of time.
Technology plays a huge part in our lives in all sorts of forms these days, and driverless technology has hit the headlines regularly over the past few months.
While driverless technology may still be some way off, we still demand a certain level of technology in the vans we hire. So, sat navs and additional security features are expected as standard.
Security is still seen as a key factor in any business owner’s decision to hire or purchase a van. With sometimes thousands of pounds worth of equipment and parts transported and carried in vans, it’s a critical factor in the decision-making process.
Leicestershire Police offer some great advice about keeping your van safe and you can also consider deadlocks for vans, such as those supplied by Vehicle Accessories http://www.vehicle-accessories.net/Security/Van-Locks/Deadlocks-Van-Locks.
In any business, costs must be a consideration and in weighing up the cost of hiring versus buying outright, you will need to consider a number of factors.
How often will you require a vehicle – is it for short term bursts of activity or as an ongoing concern? There are, of course, options to hire vehicles on a daily basis or as a contract hire agreement. While there may be tax relief benefits to owning a vehicle outright, there are also costs associated with ongoing maintenance. Of course, any new vehicle starts to depreciate as soon as you drive it off the forecourt.
Hiring a van on a contract offers businesses the benefit of a fixed monthly cost, which means that budgeting and cash flow are easier to manage and there is no initial outlay.
So, while outright vehicle purchase may still be the right option for some businesses, it seems that van hire is still going to be the way forward for many.