Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Mark Sinclair's Blog: 9 June 2010 - Rebalancing act
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Mark Sinclair's Blog: 9 June 2010 - Rebalancing act

Date: 09 June 2010

Mark Sinclair is boss of leasing firm Alphabet

A visitor from Mars landing in England this week, seeing the number of national flags fluttering from car windows, would probably conclude that this was a country with something to celebrate.

Despite the dire noises coming from 10 Downing Street about the economy, they would have a point. It's certainly not all doom and gloom at the moment.

Alphabet, for example, began 2010 with its strongest quarter ever, and we are on track to repeat the performance for the half year. Let's not forget that life and business go on, even in a recession. Cars need to be replaced, businesses need to attract and retain talent, and car schemes need to be revitalised to suit changing needs.

In many sectors, the companies that are now doing well are those that anticipated the recession or that responded most quickly when it began (or did both). That is as clear a reminder as one can get of the critical importance of forward planning and informed decision-making, especially in a downturn.

But what should the fleet sector expect next? Well, it would be very risky to ignore the increasing warnings by our new leaders that we're not out of the economic woods yet and that the UK economy is in for a period of painful 'rebalancing'.

The years ahead won't feel like the decade up to 2007, that's for sure. Jobs will be harder to find. Good jobs, with perks like a company car, will be at a real premium.

That's one reason why I think we are about to see a reversal of the trend of the Nineties and Noughties, when the number of company cars halved. During the freewheeling credit boom, almost anyone could get finance on a new car but those days are gone.

The tax rules make lower-CO2 cars a real bargain if they're taken as a benefit. And, with everyone likely to feel the pinch of austerity, company cars will regain their status value as a highly visible perk.

Salary Sacrifice will grow for much the same reasons. As it gives employees a considerable price advantage over private buyers of new cars, I can see many firms using it to attract and retain staff - especially young people who will be hardest-hit during the coming rebalancing of the UK economy.

As always when there are dark clouds on the horizon, the trick is to look for silver linings and plan your fleet strategy accordingly.

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