The exclusive agreement will see Pendragon supply replacement cars and vans for the 2,600 fleet, primarily with Vauxhalls that will be delivered in 2011, saving PHS up to 30% on the cost of a vehicle compared to buying from the forecourt.

PHS said it opted for Vauxhall because of the marque's environmental credentials and the range of models fitted the company's needs.

Nigel Bannister, group fleet manager, PHS, commented: 'The cost benefits and value for money offered by Pendragon Contracts combined with its personal service and tailored approach to meeting our requirements secured our decision to proceed with the company. Although we over-ran with our previous fleet by two years, the vehicles were becoming less reliable, and Pendragon Contracts' deal on the Vauxhall fleet made total commercial sense.'

He added: 'We're looking forward to freshening up our company image with new models and new livery with the support of a new leasing company that understands our needs.'