Euro 5, Euro 6 and the Benefits of Long Term HGV Contract Hire

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Andrew Hill • Nov 19, 2013 • Emissions standardsHGV

It's now only two months until the new Euro 6 emissions requirements are implemented, and companies are facing big decisions when it comes to adding new HGVs to their fleet. With the cost of Euro 6 technology now being passed on to buyers and Euro 5 vehicles becoming increasingly scarce, HGV contract hire has emerged as the most cost-effective option.

In the long-term, the introduction of Euro 6 will undoubtedly be a positive development for the HGV market, with commercial vehicles harnessing the latest automotive technology to become even more eco-friendly. Compared to the current Euro 5 standard, Euro 6 vehicles must reduce nitrogen oxide emissions by a further 77% and cut soot particle emissions by 66%.

We've already seen major progress in reducing the damage caused by exhaust emissions from road vehicles in the 20 years since the Euro 1 standard was introduced. For example, Transport News Brief recently reported that it would now take 70 Euro 6 HGVs to generate the same level of emissions as a single truck chassis from 1993.

However, operators with more short and medium-term concerns are more likely to be concerned about the financial implications of Euro 6, and rightly so.

The Cost of Going Green

Due to the huge sums invested in developing engines meet the more stringent standards (it is estimated that manufacturers have collectively spent about £10 billion so far), the cost of a Euro 6-compliant HGV is significantly higher than a comparable Euro 5 model.

Of course, major logistics and haulage firms that need to prove their green credentials will no doubt see the benefit of investing in Euro 6 trucks. These companies will also be well-placed to absorb the impact of the premium attached to the latest technology. But what about the many firms with small and medium-sized fleets that require new vehicles?

For these operators, HGV hire could well be the best option. Although companies that are accustomed to buying their commercial vehicles may have preferred to simply purchase new Euro 5 vehicles before January 1st 2014, it's almost impossible to find Euro 5 HGVs that are available to buy now.

Many manufacturers have already closed their order books on Euro 5 vehicles, while the price of Euro 5 HGVs in the used market has rocketed in response. That's because companies have been rushing to get their hands on these vehicles for months, as we noted back in April.

HGV Hire: A Cost-Effective Solution

However, fleet operators can still access the Euro 5 HGVs they need, and avoid the expense of an early switch to Euro 6, by hiring these vehicles. At Burnt Tree, we've invested heavily in our fleet of Euro 5 vehicles ahead of the Euro 6 deadline in order to provide customers with brand new Euro 5 HGVs at affordable rates.

Companies planning to renew their fleet in the next few months, without making the step up to Euro 6 just yet, are advised to consider HGV contract hire. It's the perfect way to keep your costs down and your vehicles running reliably as the fleet industry proceeds through this transitional phase.

Choosing to hire an HGV or a fleet of trucks from Burnt Tree carries significant additional benefits, including:

  • Minimal off-road time
  • No maintenance costs
  • Exceptional choice of brand new vehicles
  • Nationwide branch network
  • Outstanding customer service and support

Get in touch today to talk about your fleet requirements.

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