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Van Contract Hire

Van contract hire is worth for considering if you don't want to commit yourself to purchasing a vehicle and you don't want the expense of simply renting. Van contract hire or van leasing is possible with any type of van; you will find a wide selection of possibilities in regards to terms of the contract. You should never just assume that all of these leasing contracts are basically the same as there can be a wide variety of options; it will be your job to find the one that most suits your needs.

What Type of People Choose Van Contract Hire?



Van contract hire appeals to a wide variety of different people and for different reasons. Most people looking for this type of option will have a business and just don't want to be making a huge investment on a vehicle. It can work out a lot more cost effective over the long term to lease rather than to be constantly buying and selling vans. These vehicles can depreciate in value quite dramatically in a matter of years so when they time comes to replace and sell you can find a huge loss of money. If you own a van it will be a business asset but it will lose its value quickly. When businesses make this type of purchase they will either have to pay a lot of money up front or they will need to borrow the money.

With van contract hire you don't get to have the vehicle as a business asset but otherwise you do get all the benefits that are normally associated with ownership. It is usual to lease anywhere from a year until about four years; this means that you will always have a relatively new van at your disposal. This not only avoids the necessity of having to watch your purchased van depreciate in value very few months but having new vans is just better for the image of a business. When customers see your fleet of vans are new it sends the message that you are a successful business. Conversely, having old vans outside your business, or arriving at the customer's door, suggests that your company could be on its last legs.

What to Consider with Van Contract Hire



If you are considering van contract hire then you will want to think carefully about your exact needs. What may be a very good leasing deal for one person could turn out to be completely wrong for another. On important thing you will want to know beforehand is how much you intend to be using the van. Most van contract hire contracts will come with a millage limit. If you go over this limit you will usually be expected to pay a penalty fee depending on how much you have gone over. Different contracts will have different limits and if you expect to be using the vehicle a lot you would best be advised to look for van contract hire that offers a generous millage limit.


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