Covid-19 pandemic led to higher fleet lease termination costs, Europcar finds
18 January 2021
Author: Sean Keywood
Increased termination fees on leased vehicles were faced by 52% of fleet managers during the Covid-19 pandemic, according to research commissioned by Europcar Mobility Group UK.
The rental company said that 75% of fleet managers had needed to review their fleet acquisition policy as a result of the pandemic.
In addition to the extra termination cost, 62% of managers surveyed said they had to extend existing leasing contracts in 2020 due to problems with the supply of new or replacement vehicles.
Europcar attributed this to the effects of both the pandemic and Brexit, and claimed the situation was likely to be exacerbated in the early part of 2021.
Europcar Mobility Group UK specialist vehicle director Stuart Russell said: "As we enter a new year and another period of uncertainty due to the ongoing pandemic, businesses will need to remain as agile and adaptable as ever.
"At Europcar Mobility Group UK our long-term solutions provide options for businesses to expand and contract their vehicle fleets as and when demand requires, offering a cost-effective alternative to leasing or outright purchase."