taxis Contract hire and leasing company Lombard Vehicle
Management (LVM) has agreed a sale-and-leaseback deal with
greentomatocars, covering the taxi firm’s fleet of 54 Toyota
Priuses.
LVM will also deliver another 20
Priuses to greentomatocars, which specialises in
environmentally-friendly private hire, during the first half of
2009.
Go deeper with GlobalData
The decision to opt for
sale-and-leaseback was not prompted by cashflow issues, said
greentomatocars co-founder Jonny Goldstone, but rather by the
solidity of residual values for used hybrid cars, and the wish to
outsource remarketing duties.
“When we started the business in 2006,
hybrid residual values were uncertain as the vehicles were new to
the market, and this had to be reflected in contract hire rates.
Residuals are now much more solid as the vehicles are established
and legislation is encouraging their use,” Goldstone said.
“In these circumstances we can
confidently commit to a leasing strategy and can enjoy the
benefits. Not only are we free of residual value risk but the
administrative burden of disposing of the vehicles is removed. With
a large and growing fleet of vehicles we were in danger of becoming
a used car dealership rather than a private hire company.”
The taxi company had previously
acquired its cars on hire purchase – mostly arranged through
Lombard.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataStuart Brown, key fleet business
development manager at LVM, handled the deal.
Retail chain TJ Hughes chooses
LVM
A strong focus on customer
service and reducing costs has helped LVM land a fleet contract
which was formerly fulfilled by a rival lessor.
The four-year sole-supplier contract
means LVM will provide 50 contract hire Ford Mondeo and Focus cars
for clothes and home products retailer TJ Hughes, with 20 vehicles
already delivered.
LVM will also provide service,
maintenance and repair work for the fleet, along with short-term
hire vehicles as required. A spokeswoman for TJ Hughes said LVM was
selected thanks to its commitment to lowering costs, and its
promise to reduce the administrative burden on the chain’s HR
department.
Electric vans for landscaping
firm
Continental Landscapes, a grounds
maintenance company, has taken delivery of four electric vans on a
seven-year contract hire basis, with the vehicles supplied by
Carillion Fleet Management.
Carillion claimed it is one of “only a
handful of companies willing to underwrite electric vehicles on
behalf of its customers”, with the battery-powered vans in question
two 4.6-tonne Ford Transit beaver tail and two 3.5-tonne
tippers.
The lithium ion iron phosphate
batteries can be recharged overnight from a mains electricity
supply, Carillion said, giving a range of 100 miles and a top speed
of 50 mph, and the vans were adapted by Smith Electric
Vehicles.
Maintenance is included in the terms
of the agreement, with the vans predicted to cover around 5,000
miles per year.
Pat Brown of Carillion said: “We work
independently of any specific vehicle manufacturer or financial
institution, meaning we can always source the best vehicle for the
job at the very best price.
“That is why we will also explore
alternative fuel technologies, such as electric vehicles, that are
not often made available by fleet management companies but which
can deliver cost-efficiencies to customers.”
