Peter Smith, chief executive officer of Binz UK, believes vehicles such as his line of stretched Mercedes-Benz E-class could offer a better economy for private hire fleets.
He said that as MPV residual values drop by up to 40% in the first year, limousines offer similar capacity but with more class.
Smith said: ‘Our vehicle may cost more initially, but having one opens the door for taxi firms and executive travel companies to branch out into more profitable areas of business.’
Smith said leasing rates for a Binz limo were higher than MPVs, but not dramatically so – an operator would need about £978 a month with an £8,000 down payment for the stretched Mercedes-Benz.
He said: ‘The vehicle probably only needs to do one extra run to the theatre or a wedding every other week to comfortably close the leasing package gap between it and the MPV alternative.’