Contract Hire for Changing Times
To hire or not to hire, that is the question!
Usually the answer to this question consists of discussions on issues such as off-balance sheet accounting, residual value risk and other such financial matters. Often ignored are other factors which could have a significant impact on whether contract hire is the right solution for your business.
At FridgeXpress we know the complex number of issues that have to be taken into account, so we have developed our offering to better meet the needs of the market.
More than ever, flexibility is absolutely essential for many businesses, both to respond to the ever changing needs of their clients but also to keep pace with changes in technology and the legislative environment.
The Ultra Low Emission Zone is an excellent topical example of how external factors can impact on vehicle operators. Many companies with owned older vehicles will be forced to pay the additional charges from 2019, or face the cost of replacing non-compliant vehicles. Under a FridgeXpress contract we guarantee to replace any contract vehicle which doesn’t meet the new emission requirements at no additional cost to the customer!
New technology also presents challenges to those currently looking to purchase vehicles. Will diesel still be the right option in two or three years time, or should you hang on until a realistic electric alternative is available? With a FridgeXpress contract, we can build in the option to replace conventional vehicles with electric alternatives at any time during the course of the contract.
Another key factor in making a temperature controlled vehicle procurement decision can be lead time. In this respect both purchase and contract hire have tended to suffer from long delays between the ordering and delivery of vehicles. We recognise that this can cause serious operational problems. To that end we have streamlined the process and by managing stock and capacity with our suppliers, we can offer a turnaround from contract signing to delivery, from as little as two weeks!
Contract hire is definitely not always the best option, but with the flexibility that a contract with FridgeXpress offers, we ensure operators a better chance of finding the right solution for vehicle procurement. And remember if contract hire is still not right for you, we sell new vehicles as well!