That said, this is not the case for removals companies who tend to charge differently. For example, if a removals firm has a set fee for a three-bedroom house, then it won’t matter to them if the seller has had to take a lower bid offer from their buyer to sell it. Although this might affect other professionals in the property sector, it shouldn’t impact so much on removals firms. The same goes for man and van drivers who tend to operate at the smaller end of the market, typically helping with student moves or taking on the relocation work for couples with perhaps just a single-bedroom flat to their name.

It is likely, however, removals companies – large and small – will be affected if the housing market plummets and people simply don’t want to move or – worse still – cannot afford to do so. As such, some removal firms are already planning for the coming year with some sort of housing slump in mind. Although no one really knows exactly how things will pan out in the removals industry, inward investment is currently low and likely to remain so for a few months in 2023 at least. Why? Because of the uncertainty about the housing market in the country more generally, removals firms are tending to economise as much as possible already. This might mean not making an investment decision on the purchase of lifting equipment, new vans or even taking on additional members of staff for the time being. This could be a mistake, however, because what the coming housing market changes may mean is that more people move rather than fewer, at least in the short-term.

So, what is going on and what do the latest indicators from the housing market tell decision-makers in removals firms?

Dropping Asking Prices

According to industry data published by Zoopla, the online property marketing firm, house and flat sellers have already started to lower their expectations when putting their properties up for sale. Although some parts of London – typically the ones that had seen the most growth in house sale prices for the last few years – began to see negative growth much earlier this year, according to Zoopla’s figures, the dropping of asking prices has since become a nationwide phenomenon.

In other words, the expected slump in the housing market that has been widely predicted by economists and government statisticians alike for the coming year is already upon us. Zoopla itself says that average house prices are likely to fall by as much as 5 per cent in the coming year. Other reputable sources say that the drop could be by as much as double that. In just the last few months, sellers have typically had to settle for a house price that was 3 per cent below what they had initially marketed it at.

Of course, there would have been some properties that bucked this trend. Nevertheless, the difference between what sellers thought they could get and what buyers were actually willing to pay was quite marked. No doubt, some sellers refused to drop their prices and their properties remain on the market. So, although the 3 per cent figure might set alarm bells ringing in parts of the property sector more widely, it shouldn’t necessarily worry removals firms.

The reason for this is that – by and large – sellers have been realistic. What they have done is place their property on the market and realised that to get the deal over the line, they’ve needed to acquiesce to their would-be buyer’s demand for a lower sale price. In other words, houses have still been sold and people are still, therefore, continuing to move and to require the services of removals firms on the whole.

According to Zoopla’s data, it is the Southeast of England where the greatest adjustments to sellers’ expectations have been detected. That is not to say that house prices have been stable elsewhere, of course, merely that the phenomenon has been most pronounced in the places with the highest population density. What does this tell us? Firstly, it could indicate that house prices in the Southeast have been over-inflated in recent years, a situation that was not sustainable as it was simply too costly for many young people on average wages to get onto the housing ladder. In addition, it could mean that there is more competition in the more densely populated towns and cities of the Southeast. In other words, where sellers have been competing for the attention of a reduced number of potential buyers, only those who have been willing to adjust their asking prices have gone on to secure sales.

Wider Economic Troubles

Many people have put the shift in the housing market in the country down to the disastrous mini-budget that was announced by the then Chancellor of the Exchequer, Kwasi Kwarteng. Although the government’s announcement led to an increase in state borrowing costs and a significant fall in the value of sterling, the statement Kwarteng made may not be the only factor in what is causing the UK housing market to undergo its current significant changes. This is because there is another factor at play which the government may or may not have made worse depending on your point of view. In a word, this factor is inflation.

Of course, inflation is something that has been reflected in the housing market in the UK for decades. Despite a changing trade position with Europe, the credit crunch and numerous other factors, UK house prices have – more or less – seen sustained growth for 20 years. However, this is coming to an end just as the price of commodities is going up. Of particular note is the cost of fuel, something that disproportionately affects removal companies, of course, given their need to keep vehicles on the road. Therefore, off-setting high fuel costs against lower rental and property prices isn’t likely to work out for most business models.

Worse still, the Bank of England only has one lever it seems willing to pull to stem commodity prices in the country – interest rates rises. The baseline lending rate has risen several times this year already. Of course, this means that mortgage rates have also seen significant hikes, not least for fixed-price mortgages. For many in the property sector, it is the rise in interest rates that is most significant and, what’s more, many predict the Bank of England will push them up still further in 2023.

Past Lessons

It is important to note that interest rates were very high in the mid-1990s, at levels far beyond what most economists predict for the next year, at least. Back then mortgage lenders tended to repossess properties when borrowers fell behind with payments. These days, lenders tend to encourage homeowners to downsize to something more affordable instead so they can pay back their mortgages with a lower level of subsequent debt. This may work out in which case removals firms can expect more and more trades in the housing market to take place even though they might be at a lower overall value. There again, some homeowners with unsustainable mortgage payments may look at a less buoyant rental market and decide that moving into rented accommodation is a more affordable way to live. This might not suit all estate agents but it shouldn’t negatively impact on the way removals firms operate.

What may put more of a brake on moving is when homeowners face negative equity. This will mean they are likely to sit it out until such a time that the housing market recovers making it affordable for them to sell up and be able to pay off their borrowing in one go. Of course, when an individual is in negative equity will depend on when they bought their property, at what price and the current valuation in their locality. Nonetheless, the more house prices drop throughout 2023, the more homeowners will fall into this category. As such, removals firms will need to keep an eye on what the market is looking like in 12 months’ time just as much as they are today with regard to future investment decisions.

In short, some volatility in the housing market – such as we are seeing already – isn’t likely to affect removals firms much in the short term because it will mean people move in order to place their household finances on a more sustainable footing. If there is a sustained downturn in prices or there is a bigger than expected drop in demand for homes than is currently being predicted, then removal companies are likely to feel the need to plan for a harsher period with fewer trades and consequent house moves.

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However, removal contractors – including man and van service providers who do other work on top of their removals jobs – should note that Luton is a generic term. Indeed, there are many different manufacturers of box trucks that sell into the British domestic market. Although none of these vans might be officially marketed as Lutons, they are exactly that. Consequently, their designs differ quite significantly and you cannot always compare one with another simply on its asking price. In this article, we’ll look at some of the leading Luton vans on the market today. All of these are available as second-hand model and some are still current models that you can purchase or lease from dealers as new. Before we start looking at individual models, however, it will be worth examining exactly what makes a Luton such a distinct entity compared to a conventional panel van.

To begin with, Lutons have more storage space inside them than sprinter or panel style designs. This is because, by their very boxy nature, they tend to be wider and the sides of Lutons extend out over each rear wheel. In addition, there is a section of storage space used for cargo that will extend out and over the cab. Older models tended to have a box shape but modern demands for fuel efficiency often mean that they’re rounded nowadays to make the van design more aerodynamic. At the back, a roller door is the norm because this allows for Lutons to be parked close to where they will be unloaded without having to worry about hinged doors. That said, increasing numbers of new Lutons have a pair of hinged doors rather than a roller.

Some Lutons are equipped with tailgate lifts. The beefiest of these will be capable of lifting and lowering about 500 kilos but smaller electrical units mean that a capacity of around 250 kilos is more common. Please bear in mind that the continued use of tailgates is very draining on battery power so they should only be used for the largest and most bulky items during a house or office move. Another thing to note about most Lutons is that they are panelled. This protects the storage area from damage and allows for anchor points to be installed so that the contents can be held in place when in transit. There is no standard wheelbase length for Lutons today. Typically, they’ll be something around the four-metre mark. This means that the storage capacity of an average Luton is between 19 and 20 cubic metres. A sprinter-style van, by comparison, would offer you somewhere between 11 and 14 cubic metres of storage.

If you are thinking about upgrading your current van and investing in a Luton for your business, then the following models are certainly worth considering taking a closer look at.

Renault Master Low Loader Luton

The Renault Master is a very versatile van suited to all sorts of applications. The low loader version is the one that would probably be most sought after among removals contractors thanks to the ease by which items can be stowed at the rear. The lower-than-average frame of the van means that manual lifting can be kept to a minimum. What’s more, the lower loader Luton from Renault comes in a good selection of engine types. Importantly, they’re all efficient no matter which one you opt for. However, in 2020, Renault announced that it would be upgrading its ZE master range of electric vans, ideal for removals contractors who tend to stick to jobs in the same city or town. At this time, the French vehicle manufacturer said it would introduce a 3.5 tonne electric model of Luton to match the diesel one it already produced. The ZE low loader can cope with a tonne of cargo and will offer a whopping 20 cubic metres of storage space. That’s about double the capacity of the panel van version of the Master. No space has been lost with the batteries required for the all-electric Luton, either, since these are positioned in the place where the gearbox would have been.

LDV V80 Luton

The V80 by LDV is very much a workhorse. Like the Master by Renault, it comes in an astonishing array of different van models and you can even obtain a 15-seater minibus variant if you want. The Luton version is the one we are interested in, however. The first thing to say about it is that it is a good deal cheaper than just about any other new Luton you will find on the market today. Part of the reason for this is that the V80 Luton is basic. From a driver’s perspective, you will get everything you need from the 2.5-litre four-cylinder diesel engine. However, there are very few creature comforts in the cabin meaning that longer journeys can become a little uncomfortable. There’s a six-speed gearbox that supplies power to the front wheels only. That said, the Luton vans in the range are generally available without needing to wait for a specific order to be placed. On the second-hand market, LDV V80 Lutons that are five years of age tend to be the cheapest since these will be out of warranty by that point in their lifespans.

Vauxhall Movano Luton Van

Few drivers who get behind the wheel of a Movano van – whether it is a Luton or not – will fail to be impressed by just how responsive it is. This model may not offer everything you need from the perspective of a removals contractor but it is among the best vans to use on the road available these days. In the cabin, the driver’s seat can be adjusted in numerous ways to ensure a comfortable ride. Unlike some of the other Lutons on this list, there is a fair amount of adjustment possible with the steering column, too. The Maxi Load Luton model offers a convenient height to carry goods in transit and out of but the space over the cab has been chopped back to offer greater aerodynamics. This model also offers an aluminium door that drops down. As such, you can operate it as a handy loading ramp, if wanted. Overall, this is a Luton that balances value for money with operational convenience very well.

VW Crafter Luton

With 17 cubic metres of storage space in the back, the VW Crafter might not be the biggest Luton to choose but it certainly packs a punch. This is a very solidly built van that will stand up to the rigours of commercial moves even if it is used for such jobs every day of the week. The Luton version boasts a longer wheelbase chassis than standard Crafters and a body that has been designed for it by Ingimex, a Telford-based commercial vehicle body constructor. There’s just a 2.0-litre engine on offer but it delivers 163 bhp of power and a huge 400 Nm of torque, ideal for hill starts with a full payload. Lashing rails and a non-slip floor are on offer as standard so this is a Luton van that appears to have been designed with the needs of removals contractors very much in mind. The storage area also features a useful bright lamp that illuminates the entire space, perfect for nighttime relocation jobs.

Ford Transit Luton

There are plenty of Transit Lutons on the second-hand market in either a six-speed manual or a six-speed automatic transmission variant. Still available from new in both front-wheel and rear-wheel drive versions, the Transit Luton offers just a little under 20 cubic metres of storage space if you opt for a front-wheel-drive version. Indeed, the latest versions of the Luton Transit come with ten-speed gearboxes nowadays. Expect plenty of useful items inside, such as full-height grab handles, telescopic retention poles and plywood flooring. Despite some owners expressing frustration with this Luton’s reliability, the fact is that it is a good seller and there are plenty of model variants available to buy at any particular time, suiting all budgets. One of the key things to listen out for if you test drive one is how much it rattles. Generally speaking, Transit Lutons are quite quiet on the road, something that you cannot say about many box vans. Overall, the Transit is a very solid performer when it comes to removals work even if the driving experience is a little uninspiring.

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Marketing as a Removals Firm

The first thing to say about removals work is that you do not need to be licensed to carry out this sort of work with vans in the UK. However, if you join one of the trade associations involved, then – bearing in mind that certain criteria may apply – you will be able to advertise your man and van firm as a removals company. Of course, you won’t necessarily have the manpower to operate as a large removals firm would, so it is best to market your company in such a way that it isn’t seen to be competing for large-scale businesses. Many successful man and van removals firms don’t charge set fees for a removals job as a professional moving company would. Instead, they set hourly rates for their work when conducting removals just as they might for other sorts of man and van work.

The obvious question that a would-be client might put to you is how much it is likely to cost them to help them move compared to a professional removals firm. Although the answer is obviously time-dependent, the key thing to point out is that the customer will only pay for the service they receive and that, for smaller jobs, it is likely to be cheaper to book your service than a full removals firm. If you are successful with smaller jobs, then adding an extra worker for larger jobs at an increased hourly rate would be the way to go.

As for where to market your service, social media pages that deal with business services in your locality would be a great start because they’re usually free. However, the best place to get the message out there is on the side of your van. Signwriting that states you operate as a removals firm as well as providing other man and van services will soon get the message where you want it to be seen locally and start to generate enquiries.

A Focussed Service Offering

When a man and van operator is being marketed as a business that can also handle removals work, it is a good idea to link the fact that you tend to operate at the smaller scale with the sort of service you provide. Customers who want a professional removals firm to move their five-bedroom mansion are going to be hard to convert to your sort of service as a man and van operator so don’t concentrate there. Instead, focus your service on helping people who currently house share to move. You could do much worse than to advertise your man and van service as one that is aimed at the student accommodation market in your locality, for example. The time to push your business with student moves is just before the end of each term when students tend to need a cost-effective way to move a few larger items.

In addition, man and van services can be a very effective means of helping flat owners and one-bedroom house owners to move. You might need more than one trip in your van – depending on its size – to carry out such removals work but this can still be cheaper for smaller property owners than booking a full-scale removals service. Don’t forget about renters, either, because they will often be looking for a cost-effective removals service when their tenancies come to an end and they need to move out.

Offer Adequate Protection

Of course, the mainstay of any man and van removals service will be dealing with furniture, appliances and other possessions that people need to be picked up from their current home and loaded onto a van to be taken to their new address. So long as you already have the necessary lifting and handling experience, then such work shouldn’t come as too much of a change from your normal day-to-day work. However, removals work often involves a bit more finesse than you usually experience as a man and van operator.

For example, lifting items like divan beds, settees and wardrobes will sometimes mean having to protect items from scuffs as they are moved around. Removals firms will often drape sheets over such items to help protect them so you should consider getting yourself some of these to make your removals work that bit more professional. Equally, protecting carpets as you go in and out of a property is also important, especially on rainy days, so some sort of floor protection is advisable.

In the end, however, breakages will inevitably occur with this sort of work. When you are clearing an entire property for someone as a man and van operator, it rarely matters if an item is damaged. When it is someone’s treasured belongings, however, it can be quite different. As such, man and van operators who want to break into removals work should always consider the value of proper insurance for breakages in transit. Remember that you won’t be able to tell a mover that they should claim on their household insurance if something breaks or goes missing during their move. Most contents insurance policies don’t cover such breakages if they occur during a move.

Furthermore, public liability insurance is something that all removals firms – big and small – really need. In fairness, you may already have this from your run-of-the-mill man and van work. When you are moving people’s belongings out onto the street to load them up, then public liability insurance is really a must just in case a passer by is injured while the move is ongoing. The same goes for when you will be loading or unloading in places with communal areas. Many blocks of flats have stairwells and corridors where accidents could occur. Without the necessary insurance, being sued could be a business-critical event.

Extra Service Provision

With the basics of removals work covered, you should also consider what other services you can offer as a removals firm charging at man and van rates. For some, this will involve helping people to prepare for their moves. Some people are too clueless or too busy to prepare for their move which means more work on their moving day for you. It can make things tight, especially if you have another job to get to. As such, increasing numbers of man and van operators offer a pre-packing service nowadays. This essentially means putting your clients’ possessions into moving crates on their behalf a few days before their move is due. Charging by the hour, this can increase the value of such jobs enormously. Even better, by providing the packing materials to your customers, you will also be able to generate some more profit by marking up the cost of such items.

As a removals firm, it is also a good idea to mention that you undertake furniture assembly and disassembly. After all, most modern home furniture is now supplied in a flatpack form. If you have the necessary skills to disassemble such furniture to load it onto your van for a move, then why not sell your reassembly service, too? This is not part of what most removals companies would consider their core work but numerous householders will be only too pleased to have their furniture put back together for them at a busy time. Indeed, if you are in the business of collecting furniture for your clients that they have bought and delivering it to them, then a flatpack assembly service is definitely something you should at least consider adding to your service offering.

Finally, it is also worth considering taking on office removals work, too. Once you have conducted a few home removals for clients in your area, the leap to undertaking office removals work won’t seem that great. Yes, office removals work does involve some more specialist skills, such as what to do with office equipment like a photocopier, for example, when it is in transit, but much of the knowledge you need can be acquired on the job. In some cases, commercial moves can be charged at a higher rate because they’re often conducted at weekends or during the evening.

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Working as a self-employed van driver is a relatively new concept and offers an excellent and exciting way for anyone with a driving license and a roadworthy vehicle to earn money. More and more people have taken up the challenge of becoming self-employed and working as van drivers, which has resulted in a boom in the supply of delivery van drivers. This means that it can sometimes be challenging for van drivers to find a steady stream of jobs. While the ongoing pandemic has greatly increased the demand for parcel deliveries, the effects are likely to reduce again as the world returns to normality. Luckily, there are several different ways in which self-employed van drivers can ensure that they have a steady stream of deliveries and income. Read on to discover how you can keep your business growing:

Marketing

Many self-employed van drivers forget to think of themselves as businesses and not just van drivers. However, as a self-employed van driver, you are essentially running your own business and should operate it as such. No modern business can function without marketing and nor can a self-employed van driver. There are several different ways in which you can market your services to potential customers and not all of them cost money. Marketing is not always a complicated concept and despite what many people may think, it is possible to do your own marketing without spending a dime. Some of the ways in which you can use the internet to market your services include:

Social Media Marketing

Use tools like Facebook and Instagram to let people know that you offer delivery services. While these social media networks offer paid-for advertising options, it is not always necessary to use them. You can create a page dedicated to your delivery service and regularly place posts that advertise the services that you offer. In addition, ask family and friends to share your posts so that as many people as possible can see them. By doing this, people will become aware that you offer delivery services, which is the first and most important step to getting work. Later, when your business has grown a bit, you can also use paid-for marketing services to reach even more customers.

Have a Good Website

We all know that the internet is the busiest marketplace on earth and a simple Google search is the first thing we reach for when we need something, including delivery services. Having a good website is extremely important because it enables customers to find you and make contact easily. Every website should offer basic information such as a description of the services that you offer and the different types of goods that you can transport. In addition, you should use search engine optimisation techniques to make your website easy to find when people search for it on the internet. While you can easily create your own website with one of the many online website creation tools that are available today, it is often a good idea to get professional help involved. Your website is like a storefront so it should look professional and inviting to potential customers. You should also make it possible for customers to contact you directly through your website so that you can strike the iron while it is hot. First impressions count and your website is the first impression that customers will have of you and your delivery services.

Use Courier Platforms

There are several different courier platforms available and they all have one common goal, connecting self-employed van drivers with customers who need deliveries made. Registering on one or more of these platforms is a good way to gain access to more job offers. Many of the well-known courier platforms charge a small fee for using their service but this fee is well worth paying when you consider the number of delivery jobs that you can pick up from one of these platforms. However, it is important to make sure that you do enough research before deciding on a specific network. Look at things like comments from customers and drivers to make sure that the courier platform has a good reputation and that delivery drivers are treated fairly.

Use Technology as Much as Possible

There are several different applications and tools that are specifically designed to help self-employed van drivers manage their businesses effectively. Being able to manage every aspect of your business precisely is essential because it helps you to build a solid reputation. Applications can help you to plan routes and estimate delivery times accurately which is great for your reputation because it keeps customers satisfied. Applications can also help you to manage your costs effectively so that you can reduce operating costs and increase your profits as much as possible.

Partner with Online Retailers

Online retail is growing at a tremendous pace and this results in a much higher need for deliveries. Partnering with an online retailer and making deliveries on their behalf is an excellent way of growing your business and keeping your delivery van busy. Some of the large online retailers, such as Amazon, are known for partnering with self-employed delivery van drivers so it is well worth your time to investigate this option. You can usually find information about potential cooperation models and job opportunities on the websites of online retailers, which means that all that is required to get started is a little research.

Partner with Online Retailers

Online retail is growing at a tremendous pace and this results in a much higher need for deliveries. Partnering with an online retailer and making deliveries on their behalf is an excellent way of growing your business and keeping your delivery van busy. Some of the large online retailers, such as Amazon, are known for partnering with self-employed delivery van drivers so it is well worth your time to investigate this option. You can usually find information about potential cooperation models and job opportunities on the websites of online retailers, which means that all that is required to get started is a little research.

Browse Through Online Job Boards

Another way of finding delivery gigs is by browsing through online job boards. Many companies that are looking for delivery drivers might advertise on these job boards and it might be worth reaching out to them to check if it is possible to work as an independent contractor. While this option requires a little ingenuity and time, it can be well worth your while.

Be Reliable

It is important to remember that it is often much easier to acquire new customers than it is to maintain existing ones. By delivering consistently reliable services to your existing customers, your business will automatically grow thanks to word-of-mouth advertising. Since no other form of advertising can beat the results that can be achieved through personal recommendations, it is well worth ensuring that your customers are happy to recommend your services to other customers. By ensuring that you deliver reliably, your customers will usually be more than happy to recommend your services to other customers.

In Conclusion

Being a self-employed delivery driver can be a great challenge and a rewarding career choice. It offers flexibility and allows you to be your own boss but it also requires a lot of work in order to be successful. One of the most important aspects of working as a self-employed delivery driver is having a constant and reliable stream of delivery requests. This means that marketing and job acquisition is one of the most important aspects of being a modern self-employed van driver and you should dedicate enough time and resources to ensure that your business grows. With today’s modern technology and the internet, this is easier than it has ever been before and by creating a website and social media presence, you can make it easy for your customers to find you.

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According to the current government guidance, the soon-to-be introduced rules will mean changes for any firm or individual who transports goods to, through or within Europe. The changes have come about because of the UK’s deal with the EU – officially known as the Trade and Cooperation Agreement – that was struck in 2020. It is worth bearing in mind that the new rules will not just apply to lorry drivers and people who operate heavy goods vehicles because vans and other light goods vehicles also feature within the changing regulatory framework. This means anyone who operates a European courier service is likely to have to comply. This even includes drivers who transport commercial goods in their cars if they will be making use of a trailer.

In the vast majority of cases, people who are moving goods commercially within Europe will require a vehicle operator licence and a transport manager. So, you won’t only have to declare that you are transporting commercial commodities within the EU – as well as Iceland, Liechtenstein and Norway – but you will have to also – declare when you intend on travelling between two points in the EU. Any firm that has drivers who operate HGVs, vans or trailers will have to log onto an EU portal to say where they are coming from and where they are heading to. Owner-operators will also be expected to make the same declarations prior to driving to a UK port and embarking on a journey into Europe from a roll on-roll off ferry service.

To be clear, the use of the EU portal to make the newly required declaration does not cost the driver or their firm anything. It is simply that one needs to be made or drivers may be turned back at the border. Declaring the details of a journey into Europe will be known as a posting declaration. Although no fees for making a posting declaration will be levied, this constitutes another layer of complexity that drivers who travel from the UK to European destinations must take into consideration. Bear in mind that a posting declaration isn’t just required when leaving the UK for Europe, however. As a British-registered driver, if you pick up goods in Italy and transport them to Denmark, for example, you will also need to make a posting declaration for that sort of job, as well.

To break that down a little, the UK government’s current advice is for drivers of UK-registered vehicles to make a posting declaration if they are undertaking any cabotage work. This would include and jobs which involve loading goods in any EU country – plus Iceland, Liechtenstein and Norway – and then unloading them at another location in the same country. Posting declarations are also advised for cross-trade jobs that involve collecting goods in one of the aforementioned countries and then delivering them to another state within the bloc. The same rules will also apply to drivers who are transporting their own goods from one business address in the EU to another. This would affect larger businesses, for example, those that wish to shift their own stock in a UK-registered vehicle from the Netherlands to Germany and vice-versa. The rules on posting declarations will not apply to drivers who are using EU-registered vehicles, however, even if the firm they are working for is British.

Although the rule changes are likely to make a big difference to owner drivers, house removals firms, freight forwarders and courier companies that operate in continental Europe from time to time, it is important to note that it will also affect those who ply their trade on the island of Ireland, too. In short, declarations of commercial journeys within the Republic of Ireland will need to be made, as well, and this includes vehicle operators who are registered in Northern Ireland. Very few exemptions will apply when the scheme is introduced in May. For example, operators won’t be obliged to declare when their drivers are transporting an empty commercial goods vehicle, only when it is being used to actually deliver consignments. The latest advice that the government has published also states that a posting declaration is not required when a driver will be transporting goods from the UK to a non-European country. However, this will mean that they won’t be permitted to either load or unload any goods while they are en route within Europe.

To them prepare for the rule changes when they come into force, haulage firms and owner-operators can already create an account for themselves on the EU portal. Given that an account must already be created for a company to be able to declare a journey, it is the one of the few practical things that firms can do to ensure they are ready. Once a company account has been created, users can invite other people from their haulage or courier firm to share the same access rights. Further information on how to do this is now available at postingdeclaration.eu where there is a help section that answers most of the common questions about the registration process. There is also a tutorial video that has been prepared in advance of the regulatory change.

Nevertheless, the creation of a posting declaration account is not intended to be a difficult task. According to the UK government, hauliers and couriers will need only basic information about their company, transport manager (if they have one) and their employees. To break that down, the company information that will be needed includes the firm’s name, its address and its country of registration. On top of this users will need to declare an email address they want correspondence to be sent to as well as their VAT number, their company registration number and their UK Licence for the Community number. In terms of transport manager information, similar information is required, such as the name, office address, telephone number and email address of the manager in question. In addition, you will need the transport manager’s CPC certificate number.

Finally, owner-operators will need to enter some personal information about themselves into the system. This includes their full name, their date of birth, their email address and their home address. Other required driver information includes their driving licence number and any internal reference number they may have, such as their employee payroll number, for example. Companies that employ multiple drivers will need to enter this sort of information for all their employees who make journeys from the UK to Europe. Employers will also be required to state how long a driver has been employed under contract with a haulage firm although this will not apply to owner-operators. However, both employed and self-employed drivers will need to produce some form of personal ID. This will usually be their passport’s document number, its issue date, its expiry date and a declaration of where the passport was issued. Without such information being registered on the system already, making a full posting declaration is likely to be delayed and, in the worst cases, not possible at all.

Although the idea of making a posting declaration every time a journey is made in Europe with a UK-registered commercial vehicle is likely to be something couriers and road haulage firms could do without, it will mean that well-run companies will be able to streamline their processes in a way that less well-organised ones might not. Importantly, although making a posting declaration for each individual journey a driver makes in each country might be all that is needed among firms that only make international deliveries from time to time, the rules allow for more frequent drivers to register another way. This is by making a posting declaration that will cover individual drivers for up to six months, covering all journeys he or she will make in each country during that period. In other words, the start and end dates of a posting declaration can be set to a maximum of six months after which point a new declaration will have to be made. Regardless of the length of time that a declaration covers, all drivers will need to have a physical – or digital – copy of their declaration on them for the duration of their journey to present, if requested by the authorities.

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It is not just multi-drop delivery drivers who are more than likely to be better off owning their own van either. Anyone who operates a man and van service or who works in a trade that requires a van to get tools and so on to site will be in the same boat. In early February 2022, the Bank of England raised interest rates in the UK to 0.5 per cent. That’s still very low, of course, meaning that credit is affordable to many. However, with inflation looking to be sustained in the global economy, few would bet against a further hike at some point down the line. What this means for anyone borrowing is that the cost of servicing their debt is likely to go up at some point.

Consequently, the way you arrange finance for a van you want to drive will be important. The good news is that there are plenty of different financing options these days. What are the main ways you can finance a van whether you are opting for a used model or a brand new one? Read on to find out.

Purchasing Outright

To begin with, we should consider that the most straightforward way of buying a van is to do just that and to purchase it outright. What this will mean is having a sufficiently large sum saved already, of course. Not everyone will be able to do this but there are some significant upsides to saving for a van purchase as opposed to borrowing or leasing. The first is that when you pay for a van outright you will take possession of it as an asset in full. Depending on your tax status as a trader, you should be able to deduct the capital value of your van from the tax you will need to pay over several years depending on how much you depreciate it by. Any good accountant will be able to help you in this regard.

The next most important thing to say about outright purchases without finance is that you can always sell your van to liquidise your asset. In other words, so long as you can find a buyer, your working capital need not be tied up forever. Thirdly, outright purchases mean that you will have no form of debt to service so you will be free from interest charges and any potential upturn in them.

Third-Party Borrowing

Given that most owner-drivers will not have thousands of pounds in savings they can dip into to buy a van outright, borrowing is likely to be the next option they look into. Borrowing for a vehicle purchase can come in many forms. A personal loan from a bank or another reputable high street lender is one way of proceeding. There are other options, however. When applying for a loan, it is always a good idea to look at the APR. This is the indicative amount of interest a borrower can expect to pay. However, if you have a poor credit history, you’ll represent a larger risk to the lender so the interest charged can be higher. Avoid payday loans wherever possible since these are often charged at higher interest rates than other sorts of loans.

Many reputable firms offer vehicle loans nowadays, so avoid using credit cards and other forms of consumer credit. If you are buying from a van dealer, then they may have a preferred financing firm. However, you don’t have to sign up with them. It is better to shop around for a deal that suits you instead. Only ever consider borrowing from a firm that is regulated by the Financial Conduct Authority (FCA) in the UK.

Leasing

For many drivers who use their vehicle to earn their living, leasing is a very practical way of getting on the road. With a lease, you can make affordable payments in instalments, a little bit like paying off a loan. The major difference with a lease, as opposed to a loan, is that you will not own the van you are driving. The finance company – or lessor – will actually own your van. When you sign up for a lease deal, the lessor will pay the seller for it in full and be its legal owner. You will simply be the van’s registered keeper with the DVLA. However, with a lease, you can drive the van and use it for whatever commercial purpose you want to put it to.

Some leases, especially those which are marketed as personal contract hire (PCH) agreements, will require an initial deposit but some will not. Typically, leases run over three, five or seven years but you can find other options on offer, too. At the end of a lease, the vehicle must be returned to the lessor and they will then inspect it to make sure that it is in a good working state. Some lessors issue penalties for things like bodywork damage and so on, so you should factor this in. Nevertheless, leases are popular among owner drivers who want to know exactly how much they’ll need to budget for each month to keep their business going. In some cases, leasing companies will offer the van for sale to the person who was leasing it from them when the lease term ends. This can be attractive but lessors are under no obligation to operate this way.

Hire Purchase

Hire purchase is used for all sorts of things, not just commercial vehicles. Often referred to simply as HP, a hire purchase deal will be on offer from van dealers. In other words, it is not the sort of thing you will be able to obtain from a private seller. With any HP arrangement, you will have to pay a deposit upfront for the van you want to buy. How much this initial payment will be will depend on the offer being made but, generally speaking, HP arrangements tend to require a larger sum to be paid upfront than leases.

The next part of an HP deal will mean paying off the remaining sum for the van over the course of an agreed term. Usually, the balance is paid off in equal monthly instalments. There will be interest charges that apply to the sum you are paying off, of course. These can change if the Bank of England alters its base rate, however. With many HP deals, when you have paid off all of the monthly instalments, there is a further ‘option to purchase’ fee that will be levied. Make sure you know how much this will be before opting for an HP deal. Once this has been paid, the van will be yours and the financial agreement will be at an end. You can then sell the van or continue to drive it as you see fit.

Personal Contract Purchase

Personal Contract Purchase (PCP) finance is becoming increasingly popular in the UK. Many motorists now finance their family cars with PCP but the system works just as well for self-drivers of commercial vehicles. Like a lease, taking out a PCP will mean that you do not become the legal owner of the van – the financing company will have title to it. That said, the idea is that the majority of people who take up a PCP will end up owning their vehicle at the end of the arrangement. Drivers are responsible for fuel, replacing tyres and other things that might wear out, such as wiper blades under a PCP.

Please note that with this sort of financing agreement, you will have to pay an initial deposit. This will then be followed by a series of monthly instalments, much like a hire purchase. However, the big difference with a PCP is that these monthly payments are likely to be much lower, helping drivers who want to keep their overheads low while they use their van to earn a living. The idea is that you will only be paying for how much the van is dropping in value as it is driven around. For this reason, PCPs usually have an agreed amount of mileage you can drive before penalties kick in. At the end of the agreement, a significant amount will need to be paid for you to take ownership of the van. This should reflect its current market value at that point. Interestingly, drivers can either choose to pay that final amount to take ownership of the van or just hand it back.

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