It is a perfectly valid question and as a general rule you don’t borrow someone else’s money and pay them interest when you have your own money sitting in the bank. Certainly banks seem at their happiest when they are lending money to those who don’t need and asking for it back if they do.
Companies continue to purchase vehicles rather than opting for leasing. There are of course certain circumstances, such as when vehicles are going to be doing extremely high mileage that purchasing can be a more effective option.
For many years perhaps right up until the Thatcher years of the 1980s attitudes in business and towards insurance companies in particular, were different; clients tended to remain with the same insurance company for years and there was considerably less \”shopping around\” than there is today. In turn the insurance company\’s approach to the client was different; if you were a loyal client that had been with the company for years they would on occasions consider paying a claim that they might have otherwise rejected. In today\’s more commercial world, for an Insurance company to pay a claim, where they believe they have grounds for declining it, the claimant would need to be a very sizeable client, representing a considerable amount of profitability to the company, loyalty is unlikely to play a part in the decision.
As a Contract Hire company we are generally in much closer contact with our clients and customers, than perhaps a main dealership. This is because a contract hire company supplies vehicles across the whole range of manufacturers, rather than a dealership that will generally just supply their particular marque, so contact with our clients and customers tends to be much more frequent.
