Fleet News

Northgate targets small and medium-sized businesses

Northgate Vehicle Hire is generating a string of new business opportunities as small and medium-sized companies turn to hiring vehicles as a cost-effective solution to modernising their fleets.

The new business inquiries being generated are on the strength of a major email campaign targeting small and medium enterprises (SMEs) and a far-reaching restructuring of the rental sector following the end of 2010 demise of some providers.

The email campaign targeting SMEs nationwide focused on the cost-effective benefits of running new vehicles and how, with bank credit difficult to come by for some businesses, flexible hire, rather than the leasing or purchasing of vehicles, was the optimum budget-friendly solution.

Northgate Vehicle Hire sales and marketing director Gareth Jones said: “A vast number of leads have been generated resulting in talks with potential customers and more inquiries are being handled daily.”

The new business comes on the back of the number of rental providers in the industry recently reducing with GE Capital closing its TLS rental business, Newton Vehicle Rental being sold and Leaseway Vehicle Rental going into administration.

Meanwhile, industry research shows that fleets can slash fuel and service maintenance and repair bills as well as Vehicle Excise Duty costs by as much as 25% by replacing old cars or vans with modern, efficient vehicles.

Jones said: “Benefits include a reduced carbon footprint due to the introduction of new low-emission engine technology, improved driver safety as vehicles are equipped with the very latest safety features and an improved image due to the running of modern vans.

“Instead of spending time and money repairing and maintaining older vehicles that will increasingly cost more to run, Northgate’s flexible vehicle hire solution, Norflex, comes with a range of benefits for SMEs including financial savings without any long term commitment.”

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