Why hire a vehicle
From April 1 2017 the rules on paying Vehicle Excise Duty (Road Tax) are changing for all new cars registered from that date.
If you already have a car and are intending to keep it for this year at least you will continue on the existing payment system, although the Government has not yet indicated what will happen in subsequent years.
That’s fine, for now, but what if you were intending to buy a new car this year?
Different rates will apply to cars with a purchase price below £40,000 and for those above £40,000.
According to the HMRC website “First Year Rates (FYRs) for Road Tax (VED) will vary according to the carbon dioxide (CO2) emissions of the vehicle. A flat Standard Rate (SR) of £140 will apply in all subsequent years. except for zero-emission cars for which the SR will be £0.
“For cars above the £40,000 cut-off a supplement of £310 on the SR will be payable for the first five years, after which Road Tax will revert to the SR of £140.” This will apply to all new cars above the £40,000 mark regardless of their level of CO2 emissions. That means it will include electric and hybrid cars.
The changes also mean that fewer cars will be exempt from Road Tax. The new VED system will only be free for electric and hydrogen cars only, so in future, hybrid vehicles will not be exempt from Road Tax.
Do you use a vehicle daily or occasionally?
Plenty of people own a car, but actually only use it perhaps at weekends or even less frequently.
In these circumstances, it may be that the convenience of owning a car is outweighed by the cost of owning it, particularly when petrol and diesel are becoming more expensive at the pumps and you consider the additional costs of maintenance, the annual service, the MOT and any repairs, not to mention the insurance costs.
Equally, having a large family car that is only rarely used to transport all the family may not be the most economical option.
Given the increasing costs of car ownership, especially when the time comes to replace the car with another that may be more expensive following the UK’s decision to leave the EU if it is an import, it may be more cost effective to consider hiring a car for those times when you actually need it.
Hiring a vehicle for daily, weekly or long term hire can include Child Seats, Booster Seats and Sack Barrows & Satellite Navigation available. All vehicles will come with breakdown cover.
Then, there are the times when a special family occasion or group outing, or the need to move household items or to move house mean you need a larger vehicle, either a minibus or a van.
So whatever your vehicle needs is it more cost effective to hire the right vehicle when you need it rather than to buy one that will depreciate from the moment you drive it away from the showroom?
Why hire a vehicle?