Commercial Contract Hire News

If you have a brand new business you will be extremely conscious of costs and will be keen to minimise any expenditure.  However, it’s not only start up businesses that are looking to improve their outgoings.  Even well established businesses can find that measures to improve cash flow are required.

If you are looking for ways to cut costs then using van leasing is a much more economical way of funding a van fleet and it gives you direct access to some excellent high quality vehicles.  When you compare this to the cost of buying a van fleet outright the cost savings are significant.  The monthly payments of a van lease are still likely to be less than payments on finance when you take into account the deposit and the monthly repayments with interest.

You can also use van leasing as a means to deferring van ownership.  This allows businesses to capitalise upon the cost benefits of van leasing in the early years or when business is tough.  When the business is doing well and financial pressures lift, you can take ownership of the vans.  In addition to this whether you take ownership or not a van lease will be seen as an asset on your company’s balance sheet.

There are van leasing agreements available including deferred ownership such as finance lease, contract purchase and lease purchase.  You need to research the benefits of each to decide which suits your business.  Here at Freedom Commercials we have staff who will be happy to help you select the right agreement for your business.

If you have bought your company van outright up until now and are now looking to lease vans instead, the choice of contract hire companies can be daunting.  The van leasing business is extremely competitive, which is good for you in the respect that you will be open to find some great deals.  However, the dizzying amount of choice can make it seem difficult to pick a good company from a bad one, so when looking for a reputable van leasing firm, what should you look out for?

- Amount of experience - find out how long the van leasing firm has been operating.  This is an obvious way to gauge whether they can offer you a thorough, reliable service.
- Always shop around for the best deals and offers and look out for companies that offer a wide range of vehicles to choose from.  Also, look out for added extras, such as free servicing.  A van leasing company that offers a great range of vans and a wide variety of packages is a good indicator of that the company is popular and flexible.  Look out for signs that they have good links with dealers and manufacturers, too.
- Finally, ensure that the company has given you a clear breakdown of the contracts before thinking about signing on the dotted line.

At Freedom Commercials we are proud of our reputation as a professional and expert van leasing company.  We can help you to get the best deal and van for your business.

If you run the type of small business where a delivery van is of great importance you need to find a van that is reliable and looks professional.  Delivering products to clients on time is crucial to maintaining a loyal customer base and you may find your need expands and a range of vans is required to support your growing business.

This can be a worrying financial burden for new businesses as new delivery vans are quite expensive items.  There will be a significant upfront payment and then costly monthly payments to buy a van.  This can cripple many companies and it can simply prove too much of a burden.

This gloomy picture gets worse when you take into account the cost of maintaining and servicing vehicles.  However, van leasing can provide an alternative to van purchase.  You can negotiate competitive deals for single van use or fleets of vans depending on the needs of your business.

A van lease provides a more affordable way of paying to have a professional and high quality delivery van.  The rate of payment is agreed at the outset and paid over a contracted period.  There are no unexpected fluctuations or hidden costs – just a fixed monthly payment that can be budgeted for.  If you wished to buy the van at the end of the contract there are these types of contracts available.

For competitive van leasing deals on a variety of delivery van models, speak to us at Freedom Commercials.

Throughout economic history people have been forced to adapt to harsh economic conditions and you will see various examples of innovation in times of financial crisis.  The current recession has been no exception and people across the country are finding new ways to generate income.  It is no longer a secure option working for a large company and more entrepreneurs are setting up their own businesses.

If you are a qualified tradesman is a great opportunity and those that have taken time to plan out a business plan may hope to hit the ground running.  Often one thing that puts new start ups off is the large financial outlay at the outset of trading.

Vehicle purchasing, for example, can make a significant hit on a precious first year budget.  However, there is a sound alternative in van leasing.  At Freedom Commercials we offer a wide range of contract hire options and an exceptional choice of vans.

Van leasing allows you the flexibility and security to pay ongoing fixed monthly fees for vans over a contracted period.  There are packages available to meet the needs of most businesses and service costs can be included in the deal.  This reduces yet another area that can make a significant dent in finances.  In addition to this, you can expect a substantial tax rebate when taking out a van lease in comparison to actually buying one outright.

With greater affordability and access to a higher standard of van, your new business can really get off the ground.

As a small business you will be constantly looking for ways to cut costs and operate in a smart and efficient way.  By choosing van leasing you are taking steps to manage your travel budget in a cost effective way rather than going down the conventional route of buying a van outright.

There are several reasons for choosing a van lease and at Freedom Commercials we can help you to choose the best package for you.  Read on to find out why small businesses in particular can benefit from commercial contract hire:

•    You gain access to a wider range of vans than you’ll see in the second hand market.  In addition you’ll have the added benefits of a shiny new van which sends out the right message to customers and ensure you can count on a reliable service.  A second hand vehicle could mean you let down an important customer

•    Van leasing costs are calculated according to the level of depreciation a van is likely to suffer during the contract period.  However the cost of payments is still less than the cost of monthly payments on a new van and upfront payments such as deposits are minimal

•    At the end of the contract your leasing firm will take the van away.  You don’t have to concern yourself with trying to sell a van on with high mileage.  You simply hand the van back and pick up a new one

•    You can claim back VAT (if you are VAT registered) which will help your business cash flow

If you have a business then considering a van lease is a wise move.  There are many advantages to van leasing over traditional means of taking out credit, particularly if you run your own business.

One of the big drivers behind businesses choosing commercial vehicle leasing is to be tax efficient.  Finding as many ways as possible to minimise the impact of taxation is crucial to running a profitable business.

The first step is to shop around and find the best deals available.  As van leasing means you benefit from tax and VAT reclamation, in some cases up to 100 per cent, this is a sensible choice to make.

Here are some pointers to make sure you are eligible for tax breaks:

•    The van must be for use within the company as you will be able to reclaim your tax credits from annual profits at the end of the financial year.  You can still use the van for personal use and in the main there is a standard £500 fee for using the van in this way.

•    If the van you choose to lease holds more than three people it can be complicated.  To claim your VAT the payload must be a minimum of 1,000kg.

•    In some situations it may be more advantageous to opt for an operational lease.  This will guarantee the value of the van in the future.

Here at Freedom Commercials we have a wide choice of lease vans and a team happy to advise you on which lease to choose.

If you have a van lease, you are likely to be carrying heavy goods with you on a regular basis.  One of the top injuries at work are those caused by lifting objects in the work place and, as a van driver, you’ll be more prone than most to this occupational hazard.  However, it can be avoided by following some simple guidelines when handling heavy objects:

The first step is to test out the weight of a box or piece of equipment before you start to lift.  If the item is too heavy then always ask for help.  If you are alone, break up the delivery into smaller parts if possible.

The path to your destination with the objects should be clear.  It can be difficult to see when carrying a large object and you want to avoid any hazards along the way.  Make sure all doors are open in advance including your van door.

Assume a good lifting position with both feet flat to the ground and shoulder width apart.  Squat down, bending your knees and keep your back straight.  Straighten the knees slowly still maintaining a straight back and don’t try to twist or turn.

Keep the load you are carrying close to you and steady taking short steps.  If you start to tire, stop and rest.

Always wear gloves to protect your hands and if available use a trolley.  If you are likely to be unloading often then talk to the commercial vehicle leasing company about which lease vans will be better suited to this type of work.

At Freedom Commercials, we have a range of van leasing contracts available. Come to us for your van leasing requirements.

You may be looking into leasing vans for your company but are concerned about the levels of mileage driven within the business.  This is a valid concern as high mileage does equate to higher van leasing costs.  The reason for this is quite simple – vans that have higher mileage are more likely to depreciate more quickly in value.  This applies whether you van lease or buy outright.

When you are looking into committing to a vehicle you need to work out the true cost.  Over the past twelve months, used cars have depreciated rapidly.  With lease vans you do not carry the risk when the mileage clock hits 90,000 for example after a 3 year contract.

When weighing up whether you’d rather buy, please bear in mind the following disadvantages:

•    Finance is getting more difficult to come by and as a result it’s becoming harder to buy a vehicle

•    If you have a high mileage vehicle it can be challenging to sell.  Think about it from the buyer’s point of view – would you commit to a van that has high mileage and is out of its warranty period?

In contrast, commercial vehicle leasing offers many advantages:

•    You will have fixed vehicle costs each month enabling you to manage your budgets

•    You can choose a new van with low upfront outlay

•    You can select a maintenance package if you know the vans are going to high-mileage drivers.  This will take away the risk of unexpected maintenance costs.

•    The vehicle will be under warranty if leasing for three years or less, so you can relax.

Speak to us at Freedom Commercials as we are high-mileage experts and can help you to select the best van leasing package.

You may have heard the term ‘gap insurance’ banded about but do you really know what it means and why it is important to you when van leasing?

Most people are ignorant to the fact that if their car was stolen or written off during the course of their finance agreement that they would be liable to pay for any shortfall in payments which ultimately may amount to thousands of pounds.
This is where gap insurance comes in.  It provides low-cost insurance which covers you should you find yourself in a ‘total loss’ situation.

If you end a van lease agreement early – regardless of whether it’s your fault or not – you’ll receive a settlement figure from the finance company.

If the van is stolen or written off by the insurance company you may find that you owe more money to the finance company than the pay out from the insurance company.  This happens when an insurance company offers only ‘market value’ for the van which is often too little to cover the settlement figure.

Here gap insurance bridges that ‘gap’ by paying out the remaining amount.  This is not a situation peculiar to commercial vehicle leasing.  It would also apply if your van was being paid by a loan or hire purchase.

So, in short, for peace of mind this supplementary insurance is often worth taking out to minimise risk.  This way if you should be unlucky you can simply get another van lease without any worries about settlement fees on the previous one.

For more information on insurances and access to a wide range of van leasing deals contact us at Freedom Commercials.

Commercial vehicle leasing is surely the way to go when you are shopping around for a commercial vehicle or when you need a commercial vehicle for a short period of time. Purchasing a vehicle has some risks involved as well as the uncertainty of what will happen with the interest rates and how that will effect repayments.

By choosing commercial vehicle leasing, you can also ensure that you get the vehicle that you want. When purchasing, the costs are much higher than with leasing and you will often find that someone will settle for something that they did not necessarily want just because it falls within their budget. Due to the lower costs on commercial vehicle leasing, you will therefore be able to get what you want as it is much more affordable.

Choosing the vehicle that you want will more than likely also mean that it will be a newer vehicle and one with much less mileage. This will in turn mean that you will be able to save money on fuel consumption.

Older models and vehicles with high mileage are known to use more fuel, break down more often and might end up costing you a lot more money than what you intended. It could be more money because of extra expenses that you need to make for repairs and servicing. But you also stand the chance of loosing money.

Commercial vehicle leasing thus not only gives you the opportunity of a better vehicle with less mileage and a smaller chance of breakdowns, but will also save you money by ensuring your services are reliable and on time. You do not want to lose business because of a breakdown.