Fleet News

Cape reduces van fleet costs by 30% by switching from daily rental to contract hire

Cape estimates it has cut its van costs by around 30% after switching approximately 75% of its 400-strong LCV fleet from daily rental to contract hire with ALD.

The provider of industrial services to the energy and natural resources sectors has worked with ALD since 2007, and this new deal is the first time the contract has included the supply of LCVs.

Previously Cape had only used daily rental to manage its fleet of LCVs. In partnership with Cape, ALD conducted a comprehensive review of the fleet policy on LCVs and identified significant savings if the supply of the majority of the van fleet was changed from daily rental to contract hire.

On taking delivery of the first 117 vans from ALD under contract hire, Matthew Hammond, UK fleet and transport manager for Cape, said: “We expect to make significant savings with ALD, in the region of 30% on our annual rental costs.

"This for any business is a significant amount, but was not the underlying reason for the move. During the entire process, I have been extremely pleased with the way ALD have approached things - it is refreshing for a business to have experts on hand to advise and support."

With a mixed fleet of 600 vehicles located across the UK, Cape has a diverse fleet across a broad geographical spread. These variables can often prevent a “one size fits all” solution, with the geographical considerations playing a key role in ensuring vehicles are well suited to their local environment and typical journey type.

Cape has also renewed its deal for ALD to be the sole supplier for its 200 company cars for a further three years.

As part of the management of the fleet, ALD will also be providing telematics through ProFleet for their company cars to aid managing the fleet. ALD is also implementing a Personal Contract Hire (PCH) offering to support Cape’s 85-100 cash takers.

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