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Fleet managers 'need to review funding'

It is crucial for fleet operators to take steps to review their overall funding strategies.

Such is the assertion of Stewart Whyte, managing director of business travel optimisation consultancy Fleet Audits, who reports that a number of contract hire and leasing providers are taking steps to cut back on new client underwriting, resulting in a fall in choice and flexibility for fleet managers.

It was also reported that forthcoming corporation tax changes could have a major impact on costs for fleets.

He said: "All fleets really need to grasp the fact that this is not just an academic accounting issue."

Continuing, Mr Whyte stated it is vital for funding to be reviewed in order "to establish any downside risk and opportunities to reduce overall fleet costs".

He went on to advise that taking the time to select the right vehicle could have significant financial implications, reporting that choosing the "wrong" model could result in post-tax cots of more than £750 per car.

Such a figure, Mr Whyte added, is far too much for fleet managers to ignore, in news that is likely to be of interest to those on the search for fleet insurance cover.

Earlier this month, Jason Francis, managing director of Jaama, called on Alistair Darling to use the pre-Budget report to provide a boost to the ailing fleet sector.

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