01869 253744 Chat Now
Minibuses for school transport - hire, outright purchase, or hire purchase - What’s the difference? - Blog Post

Minibuses for school transport - hire, outright purchase, or hire purchase - What’s the difference?

- 28-Apr-2016 -

Here’s an explanation of your choices when it comes to outright purchase, hire purchase or minibus contract hire.

As a school, college, academy or university you may have considered the purchase of a minibus as a valuable asset, however, there are options that could be considered better value.

Outright purchase of a minibus

As with any purchase you make for your school, the minibus will present an initial outlay of cash, followed by ongoing maintenance costs. The cost is often covered by extensive fundraising efforts in the first instance, putting pressure on the friends and families of students, but providing a great source of pride when the efforts are rewarded with the brand new minibus.

However, the ongoing costs of servicing, MOTs, tyres, batteries etc. are rarely fundraised for and are not always planned expenses, putting further financial burden on the bursary.

Your new minibus will not be supplied with your school branding in place and so this cost will fall to your bursar also, as will the cost of removing the livery when the minibus is replaced.

Minibus hire purchase

In the case of hire purchase, the vehicle will belong to your facility at the end of an agreed number of payments. You will gain an asset at the end of the term, but will again be responsible for all ongoing costs, planned and unplanned expenses.

Minibus Contract hire

With contract hire, the minibus is never owned by your school, but it is rented for a set period of time typically three, four or five year contracts. At the end of the contract the minibus is returned, upon which you can choose to hire the same vehicle again, or upgrade to the latest model.

During the period of hire, you are not responsible for any ongoing costs, in fact MOTs, servicing and repairs, regular safety inspections, roadside assistance and now, uniquely, Castle can include a relief minibus for accident or mechanical breakdown included in the monthly cost - An expense which can be planned for at regular intervals over an agreed period of time. Even ‘fast fit’ items such as batteries and tyres are covered.

Upon agreement of the hire contract your minibus is supplied with the school’s logos, which are removed at the close of the contract, ensuring your school, academy, college or university’s reputation is kept intact when ownership is transferred. You will never see your minibus speeding or pulled over by the authorities.

In summary, the table below gives a clear idea of why minibus contract hire may be the best choice for your facility. If you would like to discover your minibus support team and what hassle they can free you from when organising school transport, give us a call on 01869 253744

 

* You can pay all rentals upfront to avoid a monthly payment pattern.

Purchase
With outright purchase the school’s cash resources are used to go and buy a minibus outright. As the owner of that vehicle you then organise and pay for all servicing, maintenance and repairs as well as items such as logo and livery, MOTs, tyres, batteries and exhausts etc.
Hire or Hire/Leasing
Leasing a minibus or contract hire means you pay fixed monthly rentals over a 2, 3, 4 or 5-year period and then return the vehicle at the end of the contract. Because the minibus has a re-sale value when you return it, you only pay for its depreciation, which makes the monthly cost a lot lower than other forms of finance. Also, with Castle, depending on the terms of the lease, the fixed monthly rentals are likely to cover all servicing, maintenance and repair as well as logo and livery, MOTs, tyres, batteries and exhausts. This usually means you only have to worry about paying for insurance and fuel.
Hire Purchase
Hire purchase is a form or ‘buying’ however you pay for your minibus overtime through xed monthly instalments. Once all instalments are paid you own the minibus outright and, like outright purchase, you organise and pay for all servicing, maintenance and repairs as well as items such as logo and livery, MOTs, tyres, batteries and exhausts etc.
You pay for the minibus in full from the outset
*
You pay a fixed cost per month covering everything apart from insurance and fuel with no risk on your part
Servicing and repair costs and included in the price
All Class 5 MOTs are included in the price, and any repairs as a result of this test. This also includes a collection and return service.
Fast fit items such as tyres, batteries and exhausts are included in the price
Regular safety inspections every 4 months are included in the price
Minibus Breakdown and Roadside Assistance is included in the price (i.e. a specialist minibus service, above and beyond standard car cover)
When the minibus is due for sale it is collected from your school with no involvement on your part
You are supported 'day-today' by minibus experts covering maintenance, repairs, safety items etc so that you do not have to worry about a thing


Share this page:  

All Blog Posts

Associations, Accreditations and Supported Charities

Castle Minibus are an RAC Approved Dealer Castle Minibus is proud to be associated with BVRA Castle Minibus is proud to be associated with Supershoe Castle Minibus is proud to be associated with The Association of Colleges and be ISO 9001 accredited Castle Minibus is proud to be associated with Cherwell College Castle Minibus is proud to be associated with the charity KidsOut Castle Minibus is proud to be accredited by Driver CPC Castle Minibus is proud to be a RoSPA Member
Casle Minibus Logo - reverse
© 2016 Castle Minibus. All rights Reserved.
Get a Free Quote