Fleet News

Coronavirus: Half of fleets pay early termination fees on vehicles

Row of parked cars

Three-quarters (75%) of fleet managers reviewed their fleet acquisition policy as a result of Covid-19, with more than half (52%) having to pay fees on leased vehicles handed back early.

The new research, commissioned by Europcar Mobility Group UK in August 2020, also found that another challenge for fleet managers is vehicle supply.

Europcar says that the ‘perfect storm’ of Covid-19 and Brexit are having an impact on access to new vehicles.

Indeed, the Europcar research found that 62% of fleet managers had to extend existing contracts in 2020 due to issues with supply of new or replacement vehicles. And this situation is likely to be exacerbated in the early part of 2021, it says.

Stuart Russell, specialist vehicle director at Europcar Mobility Group UK, says that at times when supply lines cannot be guaranteed, vehicle hire is a cost-effective way of “plugging the gap” and allowing companies to utilise “safe, well maintained vehicles” with the minimum of disruption to their day-to-day business.

“As we enter a new year and another period of uncertainty due to the ongoing pandemic, businesses will need to remain as agile and adaptable as ever,” he said.

“At Europcar Mobility Group UK our long-term solutions provide options for businesses to expand and contract their vehicle fleets as and when demand requires, offering a cost-effective alternative to leasing or outright purchase so that they can concentrate on running an efficient business and meeting customer expectations.”

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