The weekly round-up of fleet news including varying monthly
price quotes, longer lease deals and a new job for former Alphabet
man
Fleet lease costs vary wildly as lessees turn to
outsourcing to save cash
Go deeper with GlobalData
The monthly rentals offered on popular fleet
models are varying by as much €100 a month between lessors as the
cost of leasing rises across Europe, said European fleet management
firm Fleet Logistics.
Peter Soliman, the company’s chief executive,
described the situation as a driver for cash-strapped lessees to
turn to outsourcing for fleet procurement and management
services.
Powered by this trend, Soliman said Fleet
Logistics had grown its managed fleet by 10,000 cars in the first
half of 2012, taking its total European portfolio to 110,000
vehicles.
Comparing the current eurozone crisis to the collapse of Lehman
Brothers in 2008, Soliman said: “We are not seeing so much of a
bang, more of a whimper, but the economic conditions are pretty
similar – and it is undoubtedly affecting the way companies do
business.”
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By GlobalData“One significant consequence of the downturn is that leasing
companies, especially those that are bank-owned, are struggling
with liquidity problems of their own and increasing the interest
rates they charge their customers.
“The cost of leasing is undoubtedly increasing
and we are also seeing large spreads on monthly rentals between
different leasing companies, sometimes by as much as €100 on some
popular fleet models,” he said.
Soliman added Fleet Logistics has seen strong
growth in the Nordics where its managed fleet size has tripled in
the last year.
The company announced it was
targeting strategic expansion in the region 12 months ago.
“Our commercial director Stuart Donnelly and
his team have done an excellent job in increasing our awareness and
driving sales, especially with larger international corporations in
the region,” said Soliman.
Alphabet man joins Tusker
UK fleet operator Tusker Direct has appointed
Alphabet’s former director of international operations Mark
Sinclair as chief operating officer.
Sinclair was with the BMW-owned multi-marque
lessor for 12 years, becoming UK director before taking control of
global operations in Munich 15 months ago.
Having joined the Tusker board under chief
executive David Hosking, Sinclair has targeted strong portfolio
growth for the contract hire and salary sacrifice specialist.
He said: “I’m joining Tusker at a very
exciting stage in its development and at a time when I can add real
value to the business as it moves forward.
“I’m a strong believer in salary sacrifice as
a product that is opening up and growing in the UK.
“Tusker is very well positioned in the market
to leverage that and to capitalise on the growth opportunities
available.”
Economic uncertainty means longer
leases at Ogilvie
Fleet operators are both extending existing
company car contracts and taking longer initial leases in response
to the continuing economic uncertainty, according to UK independent
lessor Ogilvie Fleet.
Statistics from the last three years show the
number of Ogilvie’s customers signing lease agreements for more
than 36 months has increased from 25% to 46%.
Over the same period the average length of the
company’s live lease contracts has extended from 38 months to 41
months.
Nick Hardy, Ogilvie Fleet sales and marketing
director, said: “Existing company car contracts may be for 36
months but clients are not always confident enough in the economy
to take out a new lease. Instead they are extending the contract
period on existing vehicles.”
Grant.collinson@vrlfinancialnews.com
