Long-term vehicle hire vs buying and leasing
What is long-term vehicle hire? And how does it compare to buying or leasing? Make the right choice for your business with help from our handy guide.
Vehicles make the business world go round.
(And coffee, of course. Lots and lots of coffee.) But when it comes to acquiring new cars or vans, things can get pretty complicated, pretty fast. Put simply, you've got three options: buying, leasing or (our favourite) long-term rental.
We're going to weigh up all three. But first, the basics…
What is long-term vehicle rental?
If you're hiring a vehicle for yourself, rather than for a business, chances are you won't need it for long.
Going on a road trip? You might need to hire a car for a week. Moving house? Perhaps you'll need a van for a couple of days.
But in the world of business, things are different. Many organisations rely on fleets of vehicles to keep their employees mobile and provide their services effectively.
These kinds of companies will, generally speaking, need to keep rental vehicles for longer. This is where long-term vehicle hire (or "long-term rental") comes into play.
Long-term hire can last upwards of six months, all the way up to three years.
Long-term rental vs buying new vehicles
Buying vehicles is a big commitment. Not only do you have to splash the cash to purchase the new wheels, but you have to care for them and shell out for maintenance costs when things go wrong.
And when they reach the end of their useful life? Then you've got to deal with selling or scrapping them, or leave them sitting uselessly in your car park…
Long-term vehicle rental provides a simple answer to these issues.
Initial costs are low compared to buying vehicles new, and any maintenance or repairs are carried out by the rental company. If you have any issues, you can simply call a number and let someone else deal with them.
Plus, when you're done with the car, you can simply hand it back. Easy.
Long-term rental vs leasing vehicles
"Aren't they the same thing?" No. Long-term rental and leasing are actually quite different.
Sure, they both let you keep a vehicle for an extended period. But the similarities more or less end there.
Leasing a vehicle usually means signing up for a PCH contract. It's difficult to break out of this agreement once you've entered it. Just like when you sign up for a mobile phone contract, you're committing to paying for the vehicle (or phone) for the agreed duration.
Long-term hire, on the other hand, is much more flexible. You decide how long you need the vehicle when you rent it, and you won't face high termination costs if you need to break the contract early.
Servicing costs vary too. We don't charge any servicing costs when you hire a car or van from us – all the upkeep is dealt with by us. Some leasing companies might offer servicing and maintenance as part of your contract, but you should expect to pay extra for it.
So what's the catch? Long-term hire sounds like a no-brainer compared to leasing, right?
There is one potential downside to long-term hire: the cost. Leasing tends to be cheaper than hiring, especially when you need to borrow the vehicle for a considerable length of time.
But you have to weigh the cost against the flexibility. If your business is growing, or your market is unpredictable, you need to be able to scale your fleet at the drop of a hat. Only long-term rental lets you do this.
All the options compared
Please note that all the long-term rental information below is based on our terms. Details will vary with other hire companies.
Use cases for long-term vehicle hire
For new employees: if you provide company cars to employees, long-term rental can tackle the uncertainty that comes with hiring new staff. What if the employee doesn't pass their probation? What if they jump ship to another company after a few months? With long-term vehicle hire, you can provide those nice vehicular perks without committing to buying or leasing.
For contract work: ever had to turn down a contract because you just didn't have enough capacity in your fleet? That's not a problem with long-term hire. Upscaling your fleet is quick and simple, and it's easy to extend your hire period if the work takes longer than expected.
As a "try before you buy": perhaps you're pretty sure you want to purchase new vehicles, but you're not sure how they'll perform in the field? Choose a short hire contract, and you can put your new wheels through some real-world tests before you buy.
Interested in long-term hire?
Great! We'd love to help.
Since 2002, we've helped businesses all around the northeast of the UK with short- and long-term vehicle hire. And at affordable prices to boot!
Our long-term hire contracts are highly flexible and come with full servicing included. Plus, you'll enjoy expert help from our friendly team, whenever you need it.
