Antonio
Fabrizio

LeasePlan public sector arm
Automotive Leasing has advocated extending public sector fleet
lease contracts from three to four, and exceptionally five or six
years, in order to cut costs.

A White Paper published by
the leasing specialist claimed the public sector should take
lessons from the private sector if it wants to save money on
fleet.

Outsourcing fleet management
and using video conferencing were also suggested as cost-cutting
measures to help the public sector cope with sharp cuts to budgets
introduced by the government’s comprehensive spending review last
week.

The White Paper was aimed at
central and local government, and the National Heath
Service.

Automotive Leasing brand
director Stuart Walker said: “We are trying to make it easier for
our clients and prospective clients to meet the intense cost
pressure they will be under as a result of the spending review. The
essence of the advice is there are many ways to cut costs, not just
by cutting the size of fleet.”

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The paper claimed that
contracts extensions could be made without unnecessary risk of
mechanical unreliability.

“By extending the first life
in fleet, the operator can amortise the overall depreciation or
loss of value of the vehicle over a longer period,” it
said.

“This will reduce the
equivalent monthly costs and take advantage of the long-term slump
in used vehicle values which has developed over recent
years.”

Daley Associates fleet
management consultant Marc Daley expected the public sector to
become more focused on price, and on the track record of fleet
providers.

“There will be more a
joined-up approach from the government, local government
departments and city councils working together to utilise their
joint spending,” he said.

“There will be more joined
procurement programmes to reduce the cost of tendering and
selection.”

Daley agreed the public
sector could learn from the private sector.

“Quite often, the public
sector will end up with lots of different types of vehicle with
very little policy or strategy to the type of vehicles they
require,” he said.

“In that context, the private sector can demonstrate
massive efficiency savings to the public sector in the
specifications and setting a strategy for fleets.”