Petrol Prices Reduce Van Fleets
It wasnt that long ago that business in the UK and US found themselves under a large amount of pressure when their margins were slashed due to a increase in petrol prices. Many who relied on large fleets of vans to transport goods all over the country were forced to slash employee pay and take a number of their vehicles off the roads.
It was avouched this month that many businesses could be in for a second pounding as petrol prices are set to take another upward spike. What is frustrating many business owners about this situation is the lack of information it gives them to predict profit margins. “Each time we plan out our business for that quarter, petrol prices are put up and our costings go out of the window” says Barry Hemstone, MD of RDA Foods. Over 20% of all American transport-based businesses were forced to cease trading in 2008, and the figure is thought to be something similar in 2009 also.
Many people and businesses are on their last legs right now and the last thing they need is an increase in their overheads. “We are being crippled” argues Fiona Potter, who runs a small furniture chain in the UK. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. Lots of businesses like this found some salvation in van leasing as a way of bringing down their overall costs. Because they are not buying the vehicles outright, they can afford to spend more on petrol whilst maintaining their margins. An interesting point to note is that Citroen van leasing has been the most popular choice as on average these vans offer the best MPG. Ford van leasing is also up their with the most popular choices as their reliability is well respected in many industries.
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