New van-buying activity has continued to decline in Wales and across the UK, with November being the third consecutive month falling figures have been reported; but why? According to various sources, political and economic uncertainty is a huge factor, seeing many businesses now exploring different hire options as opposed to buying outright.
When digging deeper into the data presented by The Society of Motor Manufacturers and Traders (SMMT), it appears that the light commercial vehicle market has seen the biggest hit, with purchases down 11%. Whilst a worrying figure for manufacturers, demand was down across all segments, with just 26,486 new vans and pick-ups registered in November 2017.
Year-to-date registrations also fell by 4.1% to 334,133 units.
Mike Hawes, SMMT Chief Executive, said:
“While the market decline is worrying, it remains at an historically high level. Nevertheless, economic and political uncertainty continues to affect business confidence and with it new van purchasing patterns which is damaging, both for the market and for efforts to improve air quality. Getting more of the latest, Euro 6 LCVs onto our roads is the fastest way to reduce emissions so, to avoid a prolonged downturn, it is vital that government works to restore the conditions that give operators confidence to invest in their fleets.”
Should businesses still be buying vans?
Here at Pronto, we are keen to share the many van hire options with the businesses of Wales. In recent months, we have noticed more and more of our customers opting for our flexi-hire product. Below we have listed just a few benefits off flexi-hire.
No long-term commitments
Rather than conventional van leasing when you’re stuck with the same van for between 24 – 48 months, “flexi hire” means you can return the vehicle at any time or switch it out for a different size without penalty. Starting at 28 days and going up to a maximum of 12 months, flexi hire puts you in the driving seat, the longer you hire it for, the cheaper it gets, but you’re not punished if your plans change.
Low running costs: Road tax (£240), replacement tyres, servicing and breakdown cover are all included in the monthly costs.
When opting to hire two or more vehicles from the same provider, you have more room to strike a deal, with the more you hire, the more reductions obtainable. With every penny counting when it comes to company budget, businesses can save hundreds every single month by utilising just one provider.
Reclaim the full cost against tax as an operational expense
Unlike conventional long-term van leasing where you can only claim 50% of your costs, with Flexi Hire you can claim 100% of the costs back from the tax man.
A single monthly payment
As you will know, time is money in the world of business, with tasks such as settling invoices requiring manpower from the finance team. Here is where flexi hire can help, providing your company with one single monthly invoice to settle with one business. Requiring less administration as a result, we at Pronto are renowned for working with our customers, helping businesses with tailored fleet agreements that allow customers to focus on their own business.
One of biggest advantages of opting for one vehicle provider for all of your fleet is the account management aspect. For instance, if you have a query or wish to make an alteration that impacts the whole fleet, it is just the one phone call you need to make. From extending agreements to making addition to your fleet, using one firm will ensure less of your time and quicker turnaround times.
Though nice surprises are very much welcome at work, unexpected costs are not. What is so great about using one provider for your vehicle leasing is that you work with just one set of terms and conditions. With damage and wear and tear policies varying from business to business, having vehicles with a number of leasing companies could leave you vulnerable in the event of an unexpected bill.
If you require more information about our flexi-hire, feel free to contact Pronto on 02920 851177.