Traditionally, lease hire of vehicles has been the domain of the commercial sector. With urgent jobs and no vehicle of their own, companies rely on quality vans being available to transport their product to manufacturing line-sides up and down the UK.
According to Volvo, however, the tide is changing. The domestic market is seeing lease hire as the way forward as the threat of a double-dip recession just will not go away.
The figures released by Volvo are not insignificant, either. Sales in the domestic lease-hire sector have increased by more than 65% in a little over twelve months, representing more than a quarter of all of the Swedish manufacturer’s contract hire sales on UK shores.
Volvo tailored prices to UK economy
Volvo have seen early what the UK market needs, both in domestic sales and commercial, be it for the sole trader or larger concerns.
Their competitively priced lease-hire prices are of especial interest for UK businesses running fleets of vehicles and the incremental effect they are noticing impact their annual profits due to soaring van insurance policies. Utilising contract-hire for vehicles on an ad hoc basis means that they are now able to tailor monthly motor costs into their bottom line; as many businesses are still hanging on, the ability to pay month to month is seen as a proactive step, rather than a reactive one.
It may only be short-term, but staving off the financial commitment of investment in your fleet is an absolute imperative as businesses struggle for survival in our Con-Dem nation.
Vehicle maintenance the providence of the owner
Many of the insurance policies taken out with a lease-hire specialist will cover for natural wear and tear, but personal cover, and other critical aspects, may not essentially be a part of your cover. Those are details specific to the provider.
One thing hiring your commercial vehicle does do for your balance sheet, however, is wipe off the ‘depreciation’ amount from your company’s asset sheet, making the business appear more attractive to external stakeholders, such as private investors and your bank over-draught provider.
There are further benefits, but also pitfalls, especially when being beholden to the van insurance policy that the distribution outlet is offering. More on that in the conclusion of this article, here: Domestic drivers muscle in on lease hire, too