Vehicle leasing or contract hire

UK PROFESSIONAL DRIVERS FORUMS OWNER AND FLEET OPERATORS FORUM (INTERACTIVE)
1

I am looking at either leasing or contract hire. What is the difference or is it the same?
Looking a at 26 ton rigid with max length with either a max height 4 mt euroliner or a dropside flat bed.
Can anybody give me an idea as to cost including R+M at approx 100.000 kms a year and over either 3 or 5 years, and is it best to go to a main dealer or specialist leasing company and if the latter who can be recomended. Vehicle prefernce in order Daf, Volvo, Merc, MAN.

Paul

2

Basically theres not much difference between the two, however what i will say is contact as many lease/contract hire companies as possible, brokers and main dealers.

Give the exact same spec, profile etc two each company and let them know you are getting a minimum of 5 quotes before ordering.

This is the important part,
Make sure the profile and spec is the same, if one is working on a slightly different mileage, colour etc the quotes wont be anywere near, this is were most people make there mistake.

Once you have all the quotes, recontact each one saying you have a better quote and can they do any better ?

If you do this going back and forth you will be amazed at how much the initial quote will come down.

There is not a lot of business out there at the moment so its a buyers market.

Lastly and the most important dont go for a cheap inferior model/manufacturer to save a few quid a month its false economy.

Get a better truck and the service & maintenence will be better therefor saving money.
If you notice there are so many merc sprinter vans on the road now doing very high mileage, there are cheaper vans but merc sprinters are by far the most reliable so you save money on down time and maintenance.

Hipe this is of some help.

madguy. :imp:

3

Surely one of the big differences is what happens at the end of the term of use ?

My understanding (unless it has altered) is:

  1. Contract Hire - just like a long term daily rental. May or may not have maintenance included in the deal.

  2. Leasing - A way of financing - you are responsible for maintenance (although you may take out a seperate deal for this) BUT, at the end of the lease, there may be a balloon payment to be made ? This might be calculated that the vehicle has to acheive a certain value in resale ?

So, just be sure to have a look at any final return charges on leasing.