The Expense of Fueling Transport Van Is Too Much For Some Companies
It wasnt that long ago that business in the UK and US found themselves under a large amount of pressure when their margins were slashed due to a increase in petrol prices. Those companies that had transport operations felt the pressure more than most and it was common to see vehicle fleets reduced by more than half.
Now, after it was announced that petrol prices are set to rise again in the coming months, some businesses are on the edge and a large percentage of them are having to cut their fleet even further. The worst part of it, according to many transport companies is that they are increasingly unable to formulate accurate profit projections. “Each time we plan out our business for that quarter, petrol prices are put up and our costings go out of the window” says Barry Hemstone, MD of RDA Foods. Many business experts have predicted that 2009 will see similar levels of transport-based companies shut down as witnessed last year, which was around 15%.
Many people and businesses are on their last legs right now and the last thing they need is an increase in their overheads. “We are being crippled” argues Fiona Potter, who runs a small furniture chain in the UK. 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 van leasing to try an reduce their outgoings. This is because van leasing enables businesses to not buy their vans outright and so this is a useful option if cash-flow is poor. An interesting point to note is that Citroen van leasing has come out on top this year in terms of popularity, largely due to the high miles per gallon figures they offer. Ford van leasing is also up their with the most popular choices as their reliability is well respected in many industries.
