Companies operating vehicle fleets are locking down their costs and implementing stringent management controls as we prepare ourselves for the years ahead.
According to Giles Bolton, Grosvenor Leasing’s corporate finance manager, contract hire is by far the most popular funding choice as customers seek fixed cost budgeting for the growth of electric vehicles and uncertain trading conditions.
“It’s very difficult to predict the future re-sale values of electric vehicles in three to four years’ time,” said Giles, “particularly when the economy is so unpredictable at the moment.
“As a result, with electric vehicle orders making up more than 50% of deliveries, we’re seeing very strong demand for contract hire with companies not wishing to take the risk on things like depreciation and running costs of what is a relatively unknown quantity.
“It means businesses can operate a growing fleet of electric cars and vans with fixed cost budgeting and no nasty surprises.
“Another advantage of choosing contract hire for electric vehicles is that their purchase prices are currently higher than equivalent petrol or diesel models, yet the monthly rentals are very competitive.
“This is because we are anticipating that they will incur lower maintenance costs and will command relatively strong residual values – and that is the risk we are taking as a leasing business."
For companies that own their vehicles, now is a good time to consider moving to contract hire for their electric vehicle orders.
However, if ownership remains your preferred acquisition and funding method, the Grosvenor Group’s specialist fleet management business, Interactive Fleet Management, is an ideal solution to manage that transition to alternative fuels for you and the associated costs.
“Within The Grosvenor Group, we can also offer market leading personal contract hire and Salary Sacrifice solutions, both of which can also support a move to greener vehicles.”
For more information, please contact us on 01536 536 536.