Fleet News

Low take-up of contract hire by small companies

CONTRACT hire companies are being urged to target small businesses which, unlike their larger counterparts, continue to favour outright purchase vehicles over leasing. The finding is revealed in an independent survey commissioned by contract hire specialists Ryland Multifleet.

The results, analysed using five different fleet size categories, confirm that the contract hire market continues to grow steadily but only a small minority of small businesses — which can be particularly vulnerable to cash flow problems — are enjoying the benefits of leasing. While more than 60% of companies with between 50 and more than 100 vehicles on their fleets lease cars, the number falls to as low as 22.8% for those with less than 10 vehicles.

In broad terms, the number of companies operating a purchasing policy is increasing, almost back to the levels of 1996. This trend is most notable in the small fleet (less than 20 cars) area.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee