As we continue looking into the change in tide of the outlook of UK drivers into the way they fund their vehicles, here is part two of the evidence Volvo have presented the market with recently, in effect mirroring Renault’s long-term market expectations for UK drivers.
Commercial costs, the economic uncertainty we cannot shake, rising van insurance policies and now, domestic drivers looking to vehicle hire as a sensible way of keeping their outgoings down mean large shifts in the vehicle lease-hire market-place.
Long-term vehicle efficiency included
Vehicle hire companies want to retain your business, once they have it, even if you are a month-on-month customer. It is regular cash for them, and they don’t have to wait 90 days, as with some of the longer-term business transactions they enter into, making them more solvent.
Part of the philosophy behind keeping you as a customer is to always offer you the best product, i.e., the latest and most fuel-efficient models on the market.
Therefore, whatever outgoings you may see as slightly expensive in the long-term may not be as detrimental to your business, if improved efficiency and cost effectiveness is filtered into the equation.
Renault and Volvo on the same page
What Volvo’s figures tell them will only echo what Renault have been saying with the launch of the Kangoo ZE electric van.
The French company have categorically stated a belief that 10% of all cars on UK roads will be electric-powered within five years. To tailor that market-drive, their sales package comes, not only with a cheap price to buy the van outright from new, but also they have initiated distribution outlets for those businesses or individuals looking to hire vans in the sight of the economic downturn – a change in business strategy that many would have thought uneconomical in years gone buy.
Although van hire will not suit all businesses, for those with an eye on the bottom line, it may be a life-saving option
What we will say is be very careful when you hire your commercial vehicle that the van insurance they provide as standard suits your business.
Their are moves afoot to standardise what is and isn’t a basic component across the van insurance industry, leaving up to the van insurance broker what they offer as an ancillary product.
If vehicle hire is right for your business, do not let it become a constraint by not covering all of your bases.
We’re sure, with the likes of Renault and Volvo, that will not be the case, but do not take it for granted and do check out the cover provided before you take to the roads.