With much of Europe experiencing a major slowdown and the economies of Germany and the UK now confirmed as being officially in recession, Fleet Logistics has produced advice for fleet operators on how to tackle one of the severest downturns in living memory. There are many ways to tackle the financial crisis and in extreme circumstances, extreme measures are sometimes called for.
Fleet Logistics has a number of key recession beating measures that can help fleet operators in the current crisis:
* Reduce manufacturers on the fleet
Reducing the number of manufacturers on your fleet and negotiating a single or dual badge deal with the key motor manufacturers will help drive down the Total Cost of Ownership. There are incredible deals to be done right now.
* Lease nearly new vehicles
Consider leasing nearly new, used cars rather than new models. Manufacturers have huge numbers of cars up to six months old, usually with low mileages, which have come off their own rental or employee fleets which they simply cannot move. These can provide the ideal-low cost solution to your current fleet and mobility problems.
* Extend lease contracts
Extend all your contracts that are due to come off fleet by six months and negotiate a discount. Leasing companies are really struggling right now with liquidity and have millions of pounds of stock unsold at auction. If you extend by six months to Spring 2009, this should be a more advantageous time to remarket used cars.
* Go for longer replacement cycles
Extend your fleet contract term to 48 or even 60 months if you have not done so already. The saving over the standard 36 months can often deliver savings in excess of 5%.
* Competitively tender every new vehicle
Create competition on every vehicle ordered to ensure you capitalize on the significant pricing differences provided by the leasing companies. Multi-bidding on each vehicle can save in the region of 8-10% in TCOs.
* Move vehicles across borders
One way to avoid early termination penalties from leasing companies is to move cars across borders to avoid their early punitive return in one country, while leasing a new car in a different country instead.
* Restrict your car policy
Restrict driver choice and introduce a CO² based car policy by which drivers can only choose low carbon emitting, fuel efficient vehicles. This will dramatically cut fuel costs.
This is by no means an exhaustive list, but it is intended to highlight some of the measures that could be taken right now to reduce the cost of running your fleet.
At the same time, it has never been easier to implement some of the changes set out above than it is right now. The current economic climate is forcing business to make changes that it never thought was possible before now, perhaps due to driver resistance or other political pressures.
However, tough times call for tough measures. Fleet Logistics is well-placed to help companies during the financial crisis. As an independent fleet management solutions provider, Fleet Logistics has the tools, systems, processes, experience and expertise required to navigate its fleet customers through the current financial storms.
