Solus deals not the solution for controlling costs

Solus deals are experiencing a revival as fleets look to drive down costs, however not everyone thinks that that this is the most efficient way to drive down costs.Chris Shore, Pricing Manager of Hitachi Capital Vehicle Solutions thinks that solus deals are 'blunt instrument for driving down fleet costs';"It’s no surprise that solus deals with manufacturers are on the increase in fleets, as recently reported in the fleet press. Companies are having to deal with the impact of a recession and moving to a solus deal is an effective and simple way to cut costs.  However as a budgeting method, it should be considered a blunt instrument when taking a holistic view of fleet management and the function of vehicles within a business," Chris explains."The company car is the last bastion of the employee benefit, with most businesses needing to freeze pay-rises and cut bonuses just to keep their heads about water. Companies need to think carefully about the impact on staff motivation and morale before taking the step to reduce the level of the company car benefit even further by restricting vehicle choice."It’s up to the fleet provider to look at creative and innovative ways to accommodate a wider vehicle choice into the leasing deal without increasing costs. By using whole life costs and effective policy management (such as term and mileage) fleets can reduce costs whilst retaining vehicle choice."Difficult times call for more responsive working partnerships, and it’s the duty of the fleet provider to ensure it continues to be responsive to its customers’ business needs," he concludes.A effective way to control fleet costs is to shop around for deals, the internet is by far the most efficient means to look at the market as a whole. With around 120,000 car leasing deals available at any one time, ContractHireAndLeasing.com offers the widest range available to suit any pocket, for a personal leesee looking for one car to fleets looking for hundreds.

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