Pendragon Contracts has won the largest contract in its history to supply leading workplace services provider PHS Group plc. The exclusive agreement is the result of a tailored, flexible approach by the contract hire company, which will supply replacement cars and vans for the 2,600 fleet.

Pendragon says it will enable PHS to save up to 30% on the cost of a vehicle compared to buying from the forecourt.

The contract constitutes an industry top 50 fleet by size. It allows PHS to refresh its current mixed fleet of vehicles, primarily with Vauxhalls that will be delivered in 2011. PHS opted for Vauxhall because of the marque’s environmental credentials and the range of models fitted the company’s needs.

Nigel Bannister, group fleet manager, PHS, said: “The cost benefits and value for money offered by Pendragon Contracts combined with its personal service and tailored approach to meeting our requirements secured our decision to proceed with the company.

“Although we over-ran with our previous fleet by two years, the vehicles were becoming less reliable, and Pendragon Contracts’ deal on the Vauxhall fleet made total commercial sense. We’re looking forward to freshening up our company image with new models and new livery with the support of a new leasing company that understands our needs.”

Mike Roe, head of direct sales for Pendragon Contracts, added: “During the economic downturn many companies elected not to hire new vehicles, deciding instead to extend existing contracts. However, recently there has been a noticeable shift in activity with a number of businesses deciding to refresh their fleets realising their existing vehicles cannot last forever.

“Also, many more efficient and economical models are now available which can reduce whole life costs considerably through savings in fuel and maintenance costs.”