Why now is the time to replace old HGVs with Contract Hire

At Vertellus, we speak to fleet managers every day who are weighing a tough decision: continue running older diesel vehicles that are becoming harder to maintain, or take the leap into electric – which is evolving quickly but still comes with new considerations. Sound familiar?

With tighter emissions regulations and rising maintenance costs, many fleets are exploring their options. And while electric HGVs are gaining momentum, they’re not the right fit for every operation just yet. If electric isn’t right for you at the moment, modern diesel contract hire still offers a smart, flexible solution to meet today’s demands.

In this blog, we’ll break down why now is the time to rethink your fleet strategy, explore the risks of sticking with older vehicles, and show how Vertellus can help bridge the gap from diesel to electric – without disrupting your operations.

The UK’s Ageing Fleet Problem

The UK’s HGV fleet is ageing, with the average vehicle now over 8 years old. This presents a significant challenge. According to the Department for Transport (2023), a HGV of that age emits around 40% more CO₂ than a modern Euro VI model. Older vehicles also tend to be more costly to operate and maintain, and increasingly fall short of compliance standards in major cities.

These older trucks are:

Less fuel-efficient
More prone to breakdowns
Subject to heavy Clean Air Zone (CAZ) charges
Rapidly losing residual value

Three Key Risks Fleet Operators Should Be Aware Of

1. Depreciation Pressure: While specific projections vary, older diesel vehicles, particularly those not meeting Euro VI standards, are increasingly subject to depreciation pressures due to tightening emissions regulations and market shifts towards cleaner technologies.
2. Clean Air Zone Charges: Non-compliant vehicles may incur charges of up to £100 per day in more than 10 UK cities (GOV.UK).
3. Electric Vehicle Uncertainty: EVs are not expected to reach cost parity until 2030 (Energy Innovation), making diesel a continued necessity – but ageing diesel vehicles are no longer a sustainable solution.

Additionally, sustainability-focused customers are increasingly likely to prefer transport partners with cleaner fleets. Operators who stick with high-polluting trucks may find environmentally conscious clients looking elsewhere.

Building Toward an Electric Future – Without the Guesswork

While the push for zero-emission vehicles is growing, uptake remains slow. According to the Society of Motor Manufacturers and Traders (SMMT), zero-emission heavy goods vehicles accounted for just 0.5% of new HGV registrations in the UK in 2024. Cost, limited charging infrastructure, and range limitations are still very real hurdles for most operators.

For many fleets, a phased approach makes sense – upgrade your diesel vehicles now to meet today’s standards, while laying the groundwork for electric as the technology matures. It’s not an either-or decision; it’s about building a fleet that’s ready for what’s next without taking unnecessary risks today.

To make this transition manageable, Vertellus provides a guided three-phase support model:

Phase 1: Diesel Modernisation – Upgrade to modern Euro VI trucks on flexible contracts. You’ll get cleaner, more reliable vehicles with fixed monthly costs and no Clean Air Zone charges to worry about.
Phase 2: EV Trials Made Easy – Curious about electric? Try it risk-free. Our EV Discovery Programme lets you trial a 19-tonne electric truck for 12 months, complete with charging support and maintenance. It’s a great way to learn what works for your routes without a long-term commitment.
Phase 3: Seamless Transition – When you’re ready, we’ll help you scale up electric vehicles – and scale down diesel – with flexible contract terms that adapt to your evolving needs.

Why Contract Hire Beats Buying in 2025

While owning your trucks may seem like control, it often means being tied to outdated technology, unpredictable costs, and the challenges of resale. Contract hire offers a more flexible and reliable alternative:

Fixed, Predictable Costs: Eliminate the uncertainty of repair bills. With contract hire, you’ll know exactly what you’re paying each month.
No Depreciation Concerns: We take on the risk of asset depreciation, allowing you to focus on running your business.
Modern, Compliant Vehicles: Our Euro VI fleet is CAZ-compliant and up to 90% cleaner than older diesel models.
Built-in Flexibility: Whether you need to scale up or down, our short- and medium-term contracts (with terms as short as 12 months) offer the flexibility to adapt.
EV-Ready When You Are: When electric becomes the right fit for your operation, we’ll help you trial and transition at a pace that suits your needs.

Why Vertellus?

We’re not just another contract hire provider. With over 100 years of commercial fleet experience, we’re built for the future of transport.

Here’s what sets us apart:

3,500+ Commercial Vehicles, from 2.7T to 44T
Euro VI Fleet that’s ready to hit the road today
60+ Approved UK Partner Locations
1,000+ OEM-Trained Technicians nationwide
24/7 Support for both diesel and electric fleets
Dedicated Account Managers with deep industry knowledge

Whether you’re managing a national fleet or a regional operation, our infrastructure is built to support you at every turn.

Let’s Talk

At Vertellus, we ensure you don’t have to choose between short-term savings and long-term sustainability – our approach delivers both. Whether you run five vehicles or 500, we’ll make sure your fleet is efficient, compliant, and ready for the future.

Replace your old HGVs now while preparing for an electric future.

Contact us today to discuss your options and see how much your business could save.