Company car costs force tighter controls
22 May 2008
Author: Tom Webster
Spiralling fuel and finance costs are forcing business car operators into stricter controls, according to a new survey.
Leasing giant GE Capital Solutions has found that 96.9% of fleets now have a rigid policy governing the purchase, running and funding of their vehicles compared to 89.8% from last year.
These figures come on top of results from the same survey that show 72.4% of fleet decision makers expect business car numbers to increase.
GE is also predicting demand for company cars will rise over the next year despite fleet managers tightening their policies and finances.
The biggest influence on fleet policy decisions is cited as rising fuel costs, with 96.9% of managers giving this as an influential factor.
Managers are looking for greater control over the process, with contract hire and outright purchase becoming more popular, while cash allowances becoming less common.
Rich Green, managing director at GE Capital Solutions said: "In recent years, fleets explored options such as cash-for-car and drifted away from standard policies but the changing economic picture suggest that the trend is now reversing."
|Factors influencing fleet decisions|
|Rising fuel costs||85.7%||96.9%|
|General economic conditions||87.8%||94.1%|
|Performance of business||84%||93.5%|
|Source: GE Capital Solutions|