Our Services
Services
Hire Services
At VLS we work closely with each customer in tailoring each lease agreement to suit the customer’s requirement. For long term hire of vehicles the most popular lease agreements are operating lease (also known as contract hire) and finance lease. Short term hire, which is usually from one day to several months, is also an operating lease but without a long term contractual commitment.
If you already own a fleet we can buy it from you and then lease it back by any of the hire methods described above.
VLS frequently supplies vehicles to customers that have been significantly modified to suit the client’s requirements. For light vans this often includes fitting out with racking, addition of livery, warning beacons, racks for ladders, etc., alternatively it could be conversion into a minibus suitable for disabled passengers. For large goods vehicles it could be the addition of an access tower to allow overhead electricity lines to be inspected. This service differentiates VLS from most other leasing businesses. For more information, see Vehicle Specification.
For more detail on our hire services, please use the sub menu to the left.
Finance Lease
Finance lease differs from operating lease in that the customer assumes the risk related to depreciation over the length of the contract. By way of illustration, it is common for the customer’s rental charges to have covered the full purchase cost of the vehicle with VLS refunding the sale proceeds it receives on disposal. In this way the customer has taken the risk regarding depreciation.
With finance lease, the vehicle is accounted for as though the customer owned it and the cost is included in the customer’s balance sheet as a fixed asset, even though the vehicle is always owned by VLS.
This form of funding is on-balance sheet and suits the requirements of some companies. Other than depreciation risk and accounting treatment, it is identical to contract hire from an operational perspective.