Fleet News

Long-term van hire boost

Slowing economic growth forecasts - as seen in this week's pre-Budget statement - are fuelling an increase in longer-term van hire.

Commercial vehicle renter, TLS, reports that its business levels towards the end of 2007 have accelerated.

“We don't believe that there has been any notable fall in demand for actual van and truck use during 2008, which underlines the views of most commentators that the economy remains pretty stable, Carl D'Ammassa, chief operating officer at TLS, said.

“However, there has undoubtedly been a slight fall in confidence and, in these situations, businesses are less likely to buy vehicles or enter into fixed, long-term leases. As a result, rental is benefiting."

D'Ammassa explained that TLS had been promoting long-term rental as an alternative to buying or leasing vehicles for some time and that this was beginning to pay off.

"We have been trying to bring about a shift in thought where anyone with a need for a van or truck automatically considers rental alongside other acquisition methods when they need a vehicle. As a result, long-term rental has been increasing for some years,” said Mr D'Ammassa.

"But rental undoubtedly becomes much more attractive at times like this when customers feel less confident. The key advantage is that, if the downturn in business that you are worried about materialises, you can simply hand the van back to us. In the meantime, you have the use of a new, well-maintained vehicle at a highly competitive cost.”

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


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