Search
Close this search box.
Sign up for our weekly Newsletter

477 – Businesses look to daily rental to preserve cash says Ford’s Kevin Griffin

Share

5 August 2010

IT’S always a pleasure to meet up with Kevin Griffin, fleet boss of Ford, for a spot of lunch and to catch up on what’s happening in the market from Ford’s fleet and business perspective.

Apparently, the Ford Fleet sales graph has been a bit snake-like, with good figures in the early spring, a dip, a rebound and at the moment another dip, explained Kevin. “We think, though, that the new plate in September – when it becomes 60 – will provide a further stimulus. Especially as those companies that have extended leases are facing greater maintenance bills.”

At the moment, though, it seems that many companies are latching onto the idea of daily rental – Kevin said that the short cycle rental market was up 30%.

“All sizes of companies are prioritising cash and looking at effective measures of transport, both for cars and commercial vehicles,” explained Kevin. “At the same time the hirers are providing better and more local services, so the demand is being met with better service.

“We can see it in the numbers – in part it’s due to magazines like yours educating the industry on how to make efficiencies in staff transport provision.” Well thanks, Kevin. We’ll take the praise when we can, but also point readers in the direction of What is daily rental? and this case study of the smart small business Only Roses.

What Kevin says backs up some news I heard from Equalease, a company that specialises in providing short-term contract hire (three months, six, 12 – you get the idea).

The number of fleets using short term leasing as a means of ongoing company car provision was increasing, according to Equalease.

I called managing director Paul Ashton for some further info. “Many businesses remain very wary about what the short-medium term future may hold and especially the threat of a double dip recession,” Paul explained. “They do not want to enter into a three or four year lease or to buy a new vehicle at a point in time whilst they are unsure about the economy.

“We may be out of the recession but many businesses are finding that life is difficult on a week to week, month to month basis. Managers are finding few reasons to feel confident and so the combination of flexibility and pricing offered by short term leasing is appealing.”

It seems a good plan. You might pay a premium for the flexibility but preserving cash flow is important. And, as Kevin added with a wry smile: “I’m sure they’re holding off for the updated Mondeo and new Focus due soon.” I’m sure they are!

Business Car Manager: Editor’s Blog

Share this article

Facebook
Twitter
LinkedIn
WhatsApp
Reddit
Email

Want more motoring news?

Sign up here for our free weekly serving of motoring.

Sign up here for our free weekly serving of motoring.

Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

Latest news

Top