Unique Auto

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.

Now, after it was announced that petrol prices are set to rise again in the coming months, some businesses are on the edge and a large percentage of them are having to cut their fleet even further. 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. Around 25% of all companies in the US that were heavily reliant on transport, went into administration last year, which is a figure many predict will be replicated this year as well.

Many people and businesses are on their last legs right now and the last thing they need is an increase in their overheads. “We cannot survive much longer” claims Judith Grey, MD of UK-based company Grey Kitchens. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. A number of similar companies are turning to 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. 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. 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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