Fueling Vans Is Getting Too Expensive
It was only last year that many companies in the US and UK were forced to take drastic action when petrol prices took a sharp rise. Transport-based companies were hit hardest for obvious reasons and lots had no choice but to cut pay and cut vehicle numbers.
Fleets may need to be reduced even further now and companies pushed even closer towards breaking point as the government announces predicted further cost increases in the coming months. The worst part of it, according to many transport companies is that they are increasingly unable to formulate accurate profit projections. “We get a set of forcasts drawn up and then they mean nothing when petrol goes up so much” argues Jerry Henley, Managing Director of JHG Foods. Over 20% of all American transport-based businesses were forced to cease trading in 2008, and the figure is thought to be something similar in 2009 also.
Many people and businesses are on their last legs right now and the last thing they need is an increase in their overheads. “We cannot survive much longer” claims Judith Grey, MD of UK-based company Grey Kitchens. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. Lots of businesses like this found some salvation in cheap van leasing to try an reduce their outgoings. Because they are not buying the vehicles outright, they can afford to spend more on petrol whilst maintaining their margins. Interestingly, Citroen van leasing has been the most popular choice as on average these vans offer the best MPG. LDV van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.
