There’s a well-known phrase that ‘if you bought it, a lorry brought it’, but that only tells half the story, as vans play an equally vital role in keeping British business moving.

While lorries are able to carry bulk goods between destinations, it is vans that offer the pinpoint delivery mechanism for all kinds of business, from goods to services. So if lorries act as the syringe, focused on carrying and movement, then they are pretty useless without vans being the needle to provide accurate delivery wherever businesses need to operate.

Although vans have been dismissed off-hand because of their drivers’ reputations, in recent years the role of professional management in keeping costs low has been recognised.

Market developments

Vans have also changed significantly, as technology more common to cars is being fitted as standard to modern light commercial vehicles (LCVs), particularly safety devices. Many more vans now feature a driver’s airbag as a standard feature, along with anti-lock brakes, and there is more to come.

The old Mercedes-Benz Sprinter led the way by fitting its Electronic Stability Program as standard. When a driver makes an emergency manoeuvre, the system can sense when the vehicle is about to skid out of control and brake individual wheels to avoid an accident.

The latest model, launched in May, offers Adaptive ESP, which takes into account the load being carried in the back of the van and adjusts braking accordingly. Clever stuff.

Fleets also need to consider the type of vans they need to drive. Many now introduce the biggest vehicle they can get without having to introduce a tachograph, meaning growth in the sub-3.5 tonne market. This has been particularly driven by rocketing demand for home shopping from supermarkets and internet ordering services from suppliers.

In 2005, total new CV registrations, including buses and coaches, stood at 385,969 units, up 39.5% over the last five years, according to figures from the Society of Motor Manufacturers and Traders.

Sub 3.5-tonne vehicles make up the majority of this market, accounting for 322,930 sales last year, an increase of 30% over 10 years ago.

Specifying your needs

Companies like yours need to be crystal clear on their requirements when specifying vehicles, as manufacturers have tens of thousands of permutations of their LCVs, from bodystyles to seats and racking. You can even specify sinks and loos.

Engine requirements are also important, as matching power to pulling requirements is vital for achieving good fuel economy. Also consider your company’s mileage, funding and replacement cycles. Incorrect specification can lead to an increased need to rent vans to meet unexpected requirements, which contributes to higher running costs. Lastly, don’t forget the drivers. As from next year the taxable benefit of allowing them signifi - cant private use rises from £500 to £3,000.

It can help to speak to the managers of other fl eets and get their views or use organisations such as Acfo, the fl eet operators’ association (www.acfo. org). Finding detailed specifi cations for vans is relatively easy as there are a number of websites to help, including www.whatvan.co.uk and www.fl eetdirectory.co.uk.

Leasing vs buying 

Buying is currently a favourite option for many UK fl eets, but an increasing number of fi rms realise that there are signifi cant benefi ts in leasing if the process is managed correctly.

Purchasing has been preferred for so long for a variety of factors, most importantly the assumption that vans will be practically worthless when they finish their time on the fleet because of their hard life.

So which funding option – leasing or purchase – is most cost-effective and which makes more sense? The answer is unique for each company, but key questions can help. Most importantly, can your company afford to have its money tied up in a vehicle through outright purchase when it could be used more effectively elsewhere in the business? And can you afford an in-house fleet manager controlling your purchased fleet?

With leasing, you pay regular instalments covering the cost of a specified mileage and timescale. The leasing company takes all the residual value risk and will even cover maintenance, too.

But the leasing company has made basic assumptions about the condition of the vehicle when it is returned, and the company will charge you if it fails to meet those standards. Horror stories include vans returned with missing windscreens or doors and even with one tonne of set concrete in the rear. There will also be charges for exceeding the contracted mileage.

Only venture into leasing if you can effectively man- age your drivers and avoid these unexpected costs. Typical contract hire rates over four years and 80,000 miles include a Renault Kangoo 1.5 dci SL17 for £213.06 per month plus VAT, or a Mercedes-Benz Sprinter 311 MWB for £413.25 per month plus VAT.

With vehicle tracking a growing market, van specialist leasing companies can provide your business with almost anything you want, as this can help cut costs; however, all of these will add to your monthly rates. Ask a fi nancial expert or the leasing company itself to provide an analysis of purchase versus leasing to help make a decision.