Reasons to rent

posted in: General News, Van Hire

The current economic, political and environmental situation means van rental and leasing has never been more attractive to business owners.
 
Buying a car is a long term business. It requires you to have sufficient confidence in the status quo to know that a) your capital’s worth investing, b) your monthly instalments won’t skyrocket and c) your vehicle will still be worth something when you come to trade it in.
 
All of which goes a fair way to explaining why the rental and car leasing sector is booming at present.
 
TJS Short Wheel Base Van
 
Brexit
 
It seems you can barely open an article of any sort without mention of the B word, but its impact on the business vehicle market is clear. At the time of writing, the UK has agreed an interim period to tide us over between the ‘official’ start of our independence from Europe and the final agreement as to its terms. But that period could disappear if negotiations break down. And even once everything’s agreed and the dust begins to settle, business really doesn’t know how the landscape will look come the end of 2020. It’s hardly a glowing picture of economic certainty, and that means buying a van becomes a far riskier option to renting or leasing one.
 
Politics
 
We’re in a cold (well, chilly) war with Russia. We can’t agree new trade deals until we’re out of Europe, and we don’t know what trade deals we’ll get when we do.
 
All that plays into an uncertain auto market – with some manufacturers considering their UK operations and a real question mark hanging over the ongoing cost of vehicles. Depending on what happens with trade tariffs and free trade agreements, we could see van costs going up, trade-in values going down, or both! Van leasing protects businesses against those risks.
 
Finance
 
There’s yet more uncertainty in the financial markets, with some institutions planning (or threatening) to move European headquarters away from London. Again, without a service agreement, we could find ourselves paying more for financial services and that would include new car loans or existing variable ones.
 
Fixed price van rental and van leasing arrangements, however, would avoid any hikes.
 
The environment
 
With the rug well and truly pulled from beneath diesels, sales are starting to fall and, as we explored here, we’ve arguably passed a tipping point. Yet we’re not yet at a point where electric can take the shortfall – but with new advances in battery technology every year, we may be soon.
 
So leasing a van becomes an attractive option as businesses wait for technology to improve and the market to back a horse.
 
Flexible van leasing with TJS can cut risk and cost to your business. To find out how, contact us now.