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One-in-four leased fleets extend contracts

Date: 29 April 2009   |   Author: Tristan Young

More than a quarter of UK fleets extended contracts on their lease cars last year, according to a new report.

Company Car UK 2009, by PricewaterhouseCoopers, is the first to put a figure on the number of fleets taking up offers of contract extensions from the leasing industry.

Alongside contract extensions, businesses were reducing costs by reallocating cars from employees leaving to those joining a firm, reducing allowances or choice and selecting cheaper cars.

The recession has also seen a decrease in the number of firms using a three-year car policy and an increase in the number of fleets operating a four-year car renewal policy. According to the report, 54% of fleets now go for a four-year (up 4%) turn against 40% going for three years (down 6%).

Although fleets are concentrating on costs reduction, the Company Car UK report also revealed companies were increasingly improving their green transport strategies.

The PWC report found the number of businesses with a green transport plan had risen from 24% in 2007 to 35% in 2008. Alongside this a third of employers put a CO2 limit on company cars offered.

Fleet cost reduction measures
DecisionPercentage uptake
Extend lease26%
Reallocate leavers’ cars40%
Reduce allowance value8%
Reduce choice24%
Cheaper car12%
Source: PWC