Long-term vehicle hire vs buying and leasing

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.