Fleet World Workshop Tools
Car Tax Calculator
CO2 Calculator
Car Comparator
Van Tax Calculator
EV Car Comparator
BiK Rates Company Car Tax

Fleets to further ramp up use of short-term hire

Almost two in five fleet decision makers (38%) say that they have spent more on rental in 2014, while a similar figure (41%) expect to do the same in the next 12 months.

The picture is even more pronounced for van fleets, where more than three-quarters of fleet decision makers (76%) report that their rental spend has risen while almost half (48%) believe that they will spend even more in 2015.

The figures show the percentage of respondents who say their rental spend has increased:

 

Year to date

Next 12 months

Cars

38%

41%

Vans

76%

48%

Gary Killeen, managing director at GE Capital Fleet UK, said: “What we believe we are seeing here is a hangover from the recession. Fleets are facing increasing demand as the economy starts to show signs of improvement. They want to be able to retain the flexibility to hand back a vehicle at any point in time in the eventuality that we see another downturn. It is an understandable attitude.

"Unfortunately it makes little sense from a financial point of view. Daily rental is very much a top-up to your standard fleet needs rather than a long term solution and using it as an ongoing method of fleet provision is very expensive. That flexibility comes at a high price.

“We are starting to see some fleets take a more structured approach to answering the need for further vehicles rather than simply turning to a rental company. We are having conversations with several about the need to manage capacity while maintaining a high degree of flexibility. It is all about helping fleets to forecast and meet demand successfully.”

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.