Electrical retailer Hughes has awarded a full outsourcing, sole supply contract for its fleet to Activa Contracts.
The business operates 175 vehicles, comprising 140 light commercial vehicles and 35 company cars.
Historically Hughes has outright purchased virtually all vehicles with a small number being leased, but has now decided to contract hire all company cars and vans following a comprehensive funding review.
As well as whole life cost monthly expenditure, company car selection criteria also now takes into account vehicle type, engine capacity and insurance group restrictions. Additionally, a carbon dioxide (CO2) cap currently set at 130g/km is in place tied to the main rate capital allowance threshold for business cars, but that limit will reduce to 110g/km in April 2018 so further helping Hughes trim its environmental footprint.
The company car policy review now means that employees have up to 700 vehicles to choose from depending on their vehicle grade.
Chris Thornton, finance director, Hughes, said: “Activa Contracts was able to prove that by moving to a contract hire funded fleet with company cars selected on a whole life cost basis the business would make significant financial savings. Additionally, employees would benefit by having a wider choice of vehicles.”
Previously operating a multi-badge van fleet, Activa Contracts’ review based on whole life costs and operational requirements sees Hughes turn exclusively to Ford and Vauxhall vehicles.
Additionally, Activa Contracts’ one-stop-shop van solutions strategy sees vehicle partner Bott ensure all new Hughes’ vehicles are fit-for-purpose with appropriate conversions, racking and livery.
Activa Contracts is delivering a full suite of in-life vehicle and driver services to Hughes including: fleet and accident management and risk management that includes employee driver licence validation. Furthermore, Activa Contracts is also working in partnership with Hughes on updating its driver handbook to ensure that its meet current best practice standards.