Fleet News

Fixed cost motoring demand provides new challenges for leasing firms

LEASING companies that claim to provide a total motoring solution must address the issue of rental rates which include both insurance and fuel. This follows demand for fixed cost motoring, and is a challenge for the leasing industry, says Len Clayton, managing director of Hertz Leasing. He predicted leasing rentals which were recalculated quarterly according to fuel usage, and annually to take account of accident claims for insurance purposes.

'We must move from a reactive to a proactive service,' said Clayton. Among finance directors he has identified willingness to outsource services, but they still demand the most cost-effective use of funds, maximising cash flow and minimising corporate tax burdens.

Clayton remains a strong advocate of the fleet professional: 'Fleet managers are not a threatened species, but we do need good fleet managers, and they need reliable suppliers with low operating costs to evidence their control of their outsourcing supplier,' he said.

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