Renting a van 'may be cheaper than buying'

It may now be cheaper to rent a commercial vehicle long-term than buy it, according to Jeremy Feeney of Hiremorecar.com.

Feeney says low inflation has transformed the economics of vehicle ownership.

Hiremorecar, based in Kent with clients across the country, has enjoyed its fastest-ever growth  - more than 70% - in the past year. Feeney believes that is down to a change in perception to vehicle rental by business owners and individuals.

“A new van loses more than 40% of its value in the first year,” he said. “If you rent a van on a 12-month contract, and cover 24,000 business miles with an HM Customs and Revenue mileage tax allowance of £687.50, this would cover the rental cost of a vehicle such as a VW T28 Transporter.

“With little or no inflation, the way around this is to take out a rental vehicle. Unless your business is highly profitable, you can’t afford to keep on buying new, and anyway why would you want to put up with old technology?

“We live in a world that is changing at a much faster pace and where people are concerned about long-term commitment. I have re-engineered the company, offering motoring for the age of uncertainty.”