van hire

[sagarforce26]

Hi
I am thinking of setting up a van hire company has anyone got any advice? should i buy or lease the vans. pro's and con's.
thanks
Sagarforce.

 

[barney1]

Leasing is a sound idea, as of course it has large tax savings, the problem that you will find is finding a finance company willing to contract hire to a vehicle rental company. Most contracts stipulate that the vehicle cannot be sub-let, which daily rental is termed as. To this end you are better of purchasing outright but that all depends on your cashflow.

 

[Robert1989]

I dont mean to be the bearer of bad news but i wouldnt take on the hassle. I have been in this business before many years ago, the hassle and stress is not worth it. Also the market is saturated now you are competeing against some well know names. The are businesses who hirer out to rental firms, you can even lease direct from the manufacturer. But think about insurances, office and yard space, security, damages to vehicle, thefts, late returns, cleaning the vehicles, it i more and more costly to rent a van i recently did and it cost me £300 deposit and £40 per day

good luck

 

[An Oasis]

It might be worth looking at the same idea but with trailers. I know nothing about the field but looking to rent a large trailer 10ft+ in length and struggled to find anything.

 

[Robert1989]

That trailer idea is a very good idea, but i would invest in have all your trailers fitted with a tracker because i think the would have a tendancy to not be returned. 10ft+ trailer thats huge you should look if thereare any special or additional requirments to be able to tow such a large trailer. but very good idea. normal trailers, box trailers, bike or car trailers

 

[Hogrill]

The other thing to consider with trailers is that if the combined max permissible weight of the trailer and towing vehicle is over 3500kgs and you are using it for commercial reasons a tacho may be required. This doesn't just apply if using a commercial vehicle to tow with but also if you are using a car such as a 4x4.

There are exceptions but fines of up to £5k can be imposed. Not sure what responsibility these rules put onto the hire company.