To rent, or not to rent, that is the question. And it’s a good one, so well done you for asking it. The modern world is full of possibilities when it comes to how we pay for things. This is very true when it comes to motoring.
The old days of buying a van and seeing how long you can make it are gone. Running a van into the ground is rarely good for business, and it’s not a good look either. Thankfully, there are some great alternatives to buying, which offer significant benefits and some hefty savings too.
What’s wrong with buying a van?
Some people have compared hiring a vehicle to renting a house. They then say that it might not be worth it as you don’t own any equity like you do when you buy. However, what this fails to take into account is the depreciation you encounter in buying a van. Alongside fuel, depreciation is usually the biggest cost associated with owning a vehicle, especially new or nearly new.
Renting is the perfect way to avoid this massive annual hit, which is typically between 15% and 35% of a new vehicle’s value in the first year. After three years, it’ll only be worth 60% of its original value. Cue Will Smith fainting gif.
While that sinks in, remember that most businesses don’t buy the property they occupy anyway – they rent. With your van, this allows for far greater flexibility when you want to upgrade or if your circumstances change. Buying a cheap, beat-up van is always an option. It just isn’t a very good one.
Should I rent or lease a van?
Leasing is where you take out a contract to hire a van for a specified period of time. Contracts are usually two or three years, although they can be longer. The way leasing a new van works, is that you effectively pay for the depreciation over the course of your contract. There’s usually a relatively high deposit to put down, with monthly payments largely based on what the leasing company thinks the van will be worth when you hand it back.
Leasing has been more common than long term van rental in the past, but it’s not the best option if you need flexibility. Contracts are virtually impossible to get out of without paying massive early exit fees, which can be crippling in certain circumstances. Or let’s say you just don’t like your latest van. Tough, you’re stuck with it for two, three, four years or more.
Listen to Stevie
As Stevie Wonder famously sang; ‘Don’t want nothing to be wrong with long term rental.’ Or was it part-time lover? We can’t remember. But this is the beauty of rental vans. If there’s something wrong with them, you just hand them back and get a new one. Think that’s the case when you own a van? Think again. And unlike leasing which could leave you off the road for days or weeks, your rental van agreement can include a replacement clause if something goes kaput.
And you’d better believe this is one of the huge advantages of long term rentals. Business and personal needs change all the time. One of the best things about long term rentals is the flexibility you get, and it’s become much more popular since COVID-19 reared its head. Renting allows you to quickly and easily adapt to fluctuating demands – inside or outside of a global disaster.
Easy like a Sunday morning
If you’re the kind of person that likes an easy life, van rental could be the perfect solution. Rental agreements can cover everything apart from fuel, so you no longer need to worry about pesky things like insurance, tax, servicing and even damage repairs. Say goodbye to trawling price comparison sites to save yourself small change a year, and worrying about whether you can cover a hefty repair bill.
Talk to me about costs
For many people and businesses, this is a price they are more than willing to pay for the flexibility and ease. Not having to worry about things like depreciation, servicing and maintenance aside, you could also find yourself saving a substantial amount of money on fuel compared to older vans. Newer models are more efficient, cutting your costs at the petrol station. Value is key for both individuals and businesses, and you may be surprised at how cost-effective long term van rental can be.
What’s best for van rental?
The best uses for van rentals are often for one-off jobs which are going to take a specific period of time, or if you want to regularly drive a different van. This could be for taste reasons, as well as for needing different sized vans for different tasks.
Is van rental for me?
Being shorter term than buying or leasing, the financial commitment is less scary. And with the world, as it is right now, there’s a lot to say about that. There’s also a lot to say about the ease renting brings to your motoring, and the unbeatable flexibility it offers. Whether you’re looking to rent a van for a few weeks, months, or even a year or more, this increasingly popular solution to getting on the road is well worth a try.