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Van Users Feel The Pinch Again
Being forced to heavily reevaluate their business models is something that UK and American companies are accustomed to, after the price of petrol shot up last year. 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. 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 cheap van leasing as a way of bringing down their overall costs. Because they are not buying the vehicles outright, they can afford to spend more on petrol whilst maintaining their margins. Believe it or not Citroen van leasing has been the most popular choice as on average these vans offer the best MPG. 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.
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