Their statement follows on from the recent story from Arval that contract hire can shield fleets from the risk of falling RVs.
In response, Northgate head of marketing Jonathan Pearce said: ‘The main differential between contract and flexible hire is the ability to add to or remove vehicles from your fleet at any time, to adapt to demand, without incurring any kind of penalty; a necessity for fleet managers whose businesses are seasonal – specifically the retail, post and logistics, and construction sectors. When a vehicle is not utilised under contract, it still costs that business money whereas with flexible hire it can be immediately returned and associated costs removed from the balance sheet.
‘Flexible hire brings with it a range of benefits, not least the opportunity to dispel maintenance costs and down time periods of a wholly owned or contracted fleet. With flexible vehicle hire, businesses can access services such as maintenance management, which completely takes the onus of their drivers. We offer proactive scheduled maintenance and servicing, as opposed to contract hire, where drivers often have to organise and schedule their own maintenance.
‘This hassle-free service is becoming more and more appealing for busy businesses, and is accompanied by a host of cost and utilisation benefits. There is zero depreciation of the vehicles on hire and therefore no need to worry about residual value. Reliability risks associated with ageing fleets are also removed and the support of the supplier is guaranteed should emergency back up or replacement vehicles be required.
‘With more and more companies constantly trying to cut costs, an all-inclusive fixed fee that covers servicing, maintenance and replacement vehicles, as well as the actual rental, is perfect, freeing time and capital to forward plan and focus on more pressing matters.’
He concluded: ‘Flexible vehicle hire is where the clear benefits lie for smart fleet managers who can’t gaze into their crystal ball and forecast their fleet with absolute certainty. Further benefits include:
- The ability to control fleet costs and forget about forecasting fleets
- Flexible hire periods, fleet sizes and vehicle sizes
- Access to the latest fuel-efficient vehicles, which may have been previously unaffordable
- Freeing up budget that would otherwise be spent on purchasing vehicles
- For vehicles required on a longer term basis, customisation including tow bars, roof racks, beacons and livery – all tailored to individual requirements.’
