Automotive Leasing has advocated extending
public sector fleet lease contracts from three to four, and
exceptionally five or six years in order to cut costs.
A white paper published by
the leasing specialist claimed that the public sector should
take lessons from the private sector if it wants to save money on
fleet.
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Outsourcing fleet management, and using video
conferencing, were also suggested as cost cutting measures to help
the public sector cope with sharp cuts to budgets introduced by the
government’s comprehensive spending review last week.
The white paper was aimed at central and local
government, and the National Heath Service.
Stuart Walker, Automotive Leasing brand
director, said: “We are trying to make it easier for our clients
and prospective clients to meet the intense cost pressure they will
be under as a result of the spending review. The essence of the
advice is that there are many ways to cut costs, not just by
cutting the size of fleet.”
The paper claimed that contracts extensions
could be made without unnecessary risk of mechanical unreliability.
“By extending the first life in fleet, the operator can amortise
the overall depreciation or loss of value of the vehicle over a
longer period, reducing equivalent monthly costs and taking
advantage of the long-term slump in used vehicle values which has
developed over recent years,” it said.
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By GlobalDataMarc Daley, fleet management consultant at
Daley Associates, expected the public sector to become more focused
on price, and on the track record of fleet providers.
“There will be more a joined-up approach from
the government, local government departments and city councils
working together to utilise their joint spending. There will be
more joined procurement programmes to reduce the cost of tendering
and selection,” he said.
Daley agreed that the public sector could
learn from the private sector. “Quite often, the public sector will
end up with lots of different types of vehicle with very little
policy or strategy to the type of vehicles they require. In that
context, the private sector can demonstrate massive efficiency
savings to the public sector in the specifications and setting a
strategy for fleets,” he said.
