May 2009 - Comments from Phil Moorhouse, Managing Director, Northgate Vehicle Hire, for Business Car daily rental feature
Q: What will happen to the cost of daily rental in 2009 in terms of % change?
A: A general trend is emerging across the rental sector that rental prices will rise during 2009. Price increases will undoubtedly vary from company-to-company but could be of the order of up to 10%. Northgate has yet to make a decision regarding timings of any proposed price increases.
Q: By what environmental criteria can fleets book vehicles with you?
A: Northgate does not have a specific 'green' price list, but we offer customers advice on fuel efficiency and CO2 emissions as this is an important factor for many companies. In addition, we have added ECO-Start-equipped Mercedes-Benz Sprinter vehicles to our fleet to help businesses to cut their fuel bills and at the same time reduce emissions. We also offer Vehicle Monitoring - a telematics system that helps fleets improve efficiency leading to a cut in their carbon footprint.
Q: What will be your key new development in the next 6-12 months
A: Northgate operates in a highly competitive business environment and will not disclose new initiatives ahead of their launch date.
Q: What impact has the recession had upon fleet's focus on risk management?A: Cost management has become the number one focus for fleets as the economic downturn has deepened. While that has led to a shift away from a focus on risk management, it is vital that fleet decision-makers recognise that accidents are one of the most significant factors that impact on costs. Therefore, reduce crash risk exposure and costs will almost inevitably tumble.
Q: What is your key message for 2009?
A: Flexibility is crucial in business and never more so than when companies are in the grip of recession and every penny counts as all corporate costs go under the microscope. Therefore, in times of uncertainty companies should consider rental over contract hire and ownership as the most efficient and effective fleet funding route. Companies should acknowledge that it is vehicle usership and not ownership that is key to retaining control of their costs.
