Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Lex Autolease boss fears for public sector fleets
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Lex Autolease boss fears for public sector fleets

Date: 11 April 2011   |   Author:

Public sector fleets could become increasingly less attractive to leasing companies as they move towards a focus solely on price, according to Lex Autolease.

"I'm worried for the public sector - it's ceased to be interested in relationship management and seems to be purely looking at price," Lex Autolease MD Rick Francis told BusinessCar. "Unless you get some SMR or accident management, they are less interesting."

Lex Autolease has around 40,000 of its 230,000 vehicles contracted to public sector fleets.

"We will stay in the sector but I don't see growth, unless there is a large one-off sole supply where economies of scale make it worthwhile," he continued. "The reason I'm worried for the public sector is that a number of businesses may pull out and less choice is never good for the customer."

The spending cuts have led to widespread pressure to reduce public sector fleet costs, with Government alone looking to shave around £39m off its central car fleet. But Francis feels that with contract hire businesses now through the worst of the financial crisis and less willing to fight for business that doesn't offer a certain level of profit, public sector fleets may be choosing the wrong time to take an approach that majors on price.

"They have a dynamic about them that will become less and less attractive," said Francis. "All contract hire businesses are now about the bottom line, all resized and are no longer about nicking business. But we're in the public sector and we will stay there."

Follow BusinessCar on TWITTER