Contract hire is on the increase as the credit crunch continues to bite in the road transport industry. Eddie Parker, head of light commercial vehicles at contract-hire company Masterlease, believes the cost of buying a vehicle outright is just too high for many companies in the current climate.
He says: "It's fair to say we've noticed an increase in take-up of contract hire, irrespective of operator size, over the last few months.
"A lot of people who have historically bought outright just don't have that type of cash at the moment, so switching to monthly payments allows them to budget during this difficult period."
There has also been a noticeable take-up of short-term contracts, in some cases just 28 days, so small jobs can be completed and the vehicles returned when not required. "Operators are increasingly managing their vehicles as efficiently as possible, and if that means holding back on committing to a three- or five-year contract-hire agreement, then many will," adds Parker.
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