To ensure businesses obtain maximum value, Cambridgeshire-based fleet services provider Alliance Asset Management is offering private and public sector organisations a daily rental health check
It will be free of charge to the first 10 customers to take up the offer, the only criteria is they must spend between £10,000 and £250,000 per year on vehicle hire.
With challenging economic conditions continuing to face a large number of employers, many organisations are reluctant to commit to either investing in new vehicles bought outright or signing lease agreements that can run for several years and can be costly to exit.
Therefore, vehicle rental, which can range from hiring a car or van for just a few hours to several months, is proving an ideal alternative transport solution. Additionally, businesses do not have their own money tied up in a depreciating asset and, unlike contract hire, the possibility of any end of lease charges are avoided.
However, according to Alliance Asset Management’s Vincent St Claire, many businesses do not treat rental as an integral part of their overall fleet policy; benchmark their ancillary charges, nor take into consideration invoicing errors or inconsistencies, let alone appreciate the un-budgeted logistical charges linked to their chosen suppliers’ location network
He explained: “We have relationships with many of the UK’s major rental suppliers and will use our expertise and marketplace intelligence to conduct a comprehensive rental audit on behalf of customers.”
That will include a review of the rental charges; analysing in-house policies and processes for the hiring of vehicles; checking in-life rental management techniques and how best to minimise ancillary and end of rental charges.
“We expect to be able to save businesses time and money because our belief is that many organisations do not always use rental as an integrated part of their fleet policy and seem to be focused on just the daily rate they pay and not the overall cost of vehicle rental.”
Key area for potential cost savings include obtaining volume-related discounts via a closer correlation between the number of vehicles rented over a specific period of time and price paid; rental vehicles as part of an overall fleet policy; ensuring vehicles are returned filled with fuel; closely monitoring vehicle ‘on/off’ dates and times so as to avoid paying for an unnecessary additional rental day or out of hours charges; avoiding one-way rental charges; and monitoring vehicle collection and delivery charges.
St Claire said: “With fewer and fewer dedicated transport or fleet managers, these potentially costly areas can become pitfalls for the unwary resulting in significant charges being paid over and above the headline vehicle rental price.
“Our rental management audit will conclude with a comprehensive report outlining recommendations for savings.”
He added: “We believe that vehicle rental is an excellent transport solution for many businesses, but we are also conscious that unforeseen charges can quickly mount if not closely monitored and managed.
“By helping organisations overcome such issues we believe that vehicle hire can be an even more important and flexible transport solution for public and private sector fleets.”
The free rental health check applies to the first 10 companies responding with the offer running until March 31, 2013. The health check is valued at £2,500.
Any companies interested should contact Riane Cook at Alliance Asset Management to arrange an initial phone consultation and obtain details as to the full scope of the rental health check.
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