Van Users Feel The Pinch Again

Posted by admin on September 15, 2009 under Uncategorized | Be the First to Comment

It wasnt that long ago that business in the UK and US found themselves under a large amount of pressure when their margins were slashed due to a increase in petrol prices. Transport-based companies were hit hardest for obvious reasons and lots had no choice but to cut pay and cut vehicle numbers.

Fleets may need to be reduced even further now and companies pushed even closer towards breaking point as the government announces predicted further cost increases in the coming months. This flux in prices is causing many companies a large amount of grief as they cannot accurately plan their profits and losses. “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. Lots of businesses like this found some salvation in van leasing to try an reduce their outgoings. Because they are not buying the vehicles outright, they can afford to spend more on petrol whilst maintaining their margins. Interestingly, 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. LDV van leasing is also up their with the most popular choices as their reliability is well respected in many industries.