More aspects of daily life are becoming ‘pay as you go’: mobile phones, satellite TV, road tolls, congestion charging – So why not vans?

For smaller businesses, a ‘pay as you go’ approach can really add up.

So it’s worth asking whether it makes more economic sense to have a van permanently on your fleet, or hire a daily rental van only when your business really needs it.

There are many benefits to short-term hire. Flexibility and simplicity, for instance. You pick it up, do the job, hand it back.

It also removes the risk of owning a depreciating asset, or the overheads of contract hire. And provided you hire from a reputable rental firm, the van will be in excellent condition.

So how can you tell whether it’s better to have a van on the fleet full-time, or to hire daily rental vans when you need them?

First step: assess how often you really need a van. Can some of your van jobs be handled by other vehicles on your fleet? Is it possible to streamline your van usage? Instead of a series of smaller deliveries spread throughout a week, can you combine them all into a one- or two-day operation?

Once you have decided how often you really need a van, work out how much it costs you each year. If you have the van on contract hire, it should be simple to calculate. If you own it, factor in depreciation, servicing and maintenance. Then divide annual cost by the number of days you expect to use the van. That gives you the true daily operational cost of the van – you may be surprised by how much it costs for comparatively limited usage.

Of course, the economics may not add up. Or it may not suit the way your business likes to work. But the calculation is well worth doing. Daily rental vans could up for your business.