Demand growing for two-year van rental contracts, finds Liquid Fleet

In response to rising new vehicle prices, demand is growing for two-year van rental contracts, according to Liquid Fleet.

Liquid Fleet said businesses are prioritising cost certainty over frequent replacement cycles.

It said that rental remains popular as fleets prioritise operational flexibility.

Businesses were also extending van rental contracts to avoid the cost of replacing racking and signage.

Liquid Fleet said that the economics of running vans has changed considerably since Covid-19, with list prices up, but residual values remaining a challenge, as some models now retain around 30% of their original price after 18 months.

Despite more plug-in hybrid (PHEV) and electric vans entering the market, Liquid Fleet still exclusively offers diesel vans.

However, it has recently opted to acquire vehicles such as the Volkswagen Caddy, Renault Trafic and Toyota ProAce, moving away from vehicles such as the Volkswagen Transporter, reflecting the changing market.

Martin Potter, commercial director at Liquid Fleet, said: “As businesses review their fleet strategies, many recognise that extending rental contracts provides a practical way to maintain operational flexibility while managing rising vehicle costs.