As a UK Top 40 Contract Hire & Leasing company and one of the few non bank owned fleet providers, Fleethire is in an ideal position to an independent insight into what is happening in today's fleet market. We provide a wide range of services and products to fleet users regardless of their funding methods, as well as outsourcing solutions to our customers. Our customer portfolio is thoroughly representative of a wide cross-section of the business community with fleet sizes to match.

The Fleet industry as a whole has spent the past 6 months dealing with difficult challenges from all directions with 2009 shaping up to provide more of the same. Early 2008 concerns over huge increases in fuel and funding costs gave way to the credit crunch which has bitten hard in our sector - well known for being a barometer of business confidence. Since then credit lines have constricted with a more cautious approach from lenders and used vehicle values at Auction have dropped considerably, all affecting the price we charge our customer. Fortunately fuel prices have fallen to more realistic level and are now below £1 per litre for the first time in 14 months. Reacting to the sharp downturn in new vehicle sales, some manufacturers have reduced capacity and lengthened their shut-down periods.

These trading conditions have already led to some consolidation in the market with more to come, and this in turn allows less choice to the customer. Some leasing providers have closed their doors to new business and are only dealing with existing clients.

Consequently service levels from the larger providers may suffer for some fleets, so selecting a ‘Fleet Partner' is now more important than ever. Many customers also feel nervous about long term lease commitments in uncertain times, so we at Fleethire have responded by extending existing contracts until the climate is more settled. We have also pioneered the re-leasing of our own quality ex-lease vehicles at competitive rates over a 12/24 month period - perfect for short term requirements or new starters on probation.

Newly formed businesses are also having difficulty raising the required funding for a new fleet, leading Fleethire to develop our New Start product. This allows start-up businesses access to competitively priced vehicles with no strings attached and is proving to be a great success.

In addition, the fleet market is constantly reacting to new government legislation with most initiatives concerning CO2 and the reduction of your Carbon Footprint. Measures announced this year to change the existing Capital Allowances and Contract Hire Rental Allowances arrangements will come into force on 1st April 2009, and will mean a reduction in leasing costs for those vehicles emitting under 160g/km.

So, what policies should you adopt to make sure you are operating a fleet that is efficient, safe and cost effective?

1) Choose a supplier who can show an investment in people and systems as they should deliver a quality wraparound service

2) Look for a ‘Partnership' arrangement with Fleet provider who values your business

3) Invest time in developing a fleet policy and driver handbook

4) Look at Whole of Life costs, not simply rental

5) Review your fuel and Green options. The higher mpg the lower the running costs and the lower the CO2 the lower the NI

6) Identify your maintenance costs and consider the benefits of a fixed price offering from your leasing provider.

7) Review your car choices - 4x4's and some premium models represent poor value for money on a pence per mile basis

8) If possible look to a sole or dual supply arrangement with Manufacturers to provide maximum front-end discounts. Apply this discount to the rental to reduce funding costs and risk

9) Monitor mileage reports to find areas where mileage could be reduced

10) Consider using an Accident Management provider - a good leasing company can make the arrangements for you

A quality lease provider can offer much more and in these difficult times communication is paramount. Through regular 1 to 1 communication with our customers and their drivers, the provision of accurate MI and constant improvements to the wrap-around service that we provide we are able to identify problem areas before they occur.

For more information about fleet hire visit www.fleethire.co.uk [1]