Petrol Prices Reduce Van Fleets

It was only last year that many companies in the US and UK were forced to take drastic action when petrol prices took a sharp rise. Those companies that had transport operations felt the pressure more than most and it was common to see vehicle fleets reduced by more than half.

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. “We get a set of forcasts drawn up and then they mean nothing when petrol goes up so much” argues Jerry Henley, Managing Director of JHG Foods. Many business experts have predicted that 2009 will see similar levels of transport-based companies shut down as witnessed last year, which was around 15%.

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. Some companies such as the one mentioned above have taken up cheap van leasing as a way of bringing down their overall costs. This is because van leasing enables businesses to not buy their vans outright and so this is a useful option if cash-flow is poor. Believe it or not Citroen van leasing has come out on top this year in terms of popularity, largely due to the high miles per gallon figures they offer. Ford van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.