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Is it Still Worth Buying Company Vans Outright?

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Whether you run a small start-up or an established company, the need for reliable, competitive travel quickly makes itself apparent. Recent statistics have shown that more and more Welsh business owners are opting for ‘flexi hire’ for their company vehicles rather than buying them outright; a shift that has fed the success of companies such as Pronto Hire.

Specialising is commercial van rental in Wales, the Caerphilly-based company has experienced year-on-year growth, with its Director, Naunton Dickins, flying the flag for “flexi hire” over leasing.

“Here at Pronto we work with many different types of businesses across Wales, creating bespoke vehicle packages to support professionals in their everyday duties. From start-ups needing a works van to get from A to B, to businesses wanting to refresh boost their fleet with a number of new vans, we enjoy seeing business owners drive away with a great deal”.

What benefits are attracting Welsh businesses to “flexi hire”?

Unlike other finance options, flexi hire boasts no hidden costs, and no big upfront fees allowing businesses to create and stick to a transport budget that suits them. This is one of the many financial advantages to flexi hire over buying outright or long-term leasing. It certainly pays to think about the other hidden annual costs of van ownership. Here are just a few things to bear in mind if you take out a long lease a company van or vans:

  • Road tax is currently at £240 a year and is creeping up by £5 a year for all vans under 3.5ton.
  • If you’re doing 30,000 miles a year, you are likely to need a new set of tyres every 12 months; another £290 (on average).
  • Annual servicing and MOT demands set vehicle owners and leasers back around £250.
  • Breakdown cover generally sits around the £150 a year mark.

That’s close to £1000 a year before you’ve even thought about depreciation which is at least another £200 per month on a new van. Add that all up and you’re looking at £4,530 which is the equivalent of 44 weeks of flexi hire on a new Ford Custom.

When opting for a van on a flexi-hire, all of the above is covered and there are no penalties to pay if you want to return it. All you have to worry about is keeping it topped up with fuel.

For more information about flexi hire vans, be sure to contact Pronto Vehicle Rentals today.

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