Capex limits ‘an issue for company-owned fleets’

Written by Ellie

Capital exchange (capex) limits can be an issue for many fleet operators, particularly those that own their own vehicles, new research has shown.

GE Capital Fleet Services carried out a survey asking almost 200 chief financial officers and fleet managers operating fleets of at least 300 vehicles to highlight the major issues they face on a day-to-day basis.

It found that for more than half (51 per cent) of businesses that own their own vehicles, capex limits were stated as their biggest financial challenge. This compared to just 11 per cent of respondents among companies that lease their vehicles.

Strategic consulting manager at GE Capital Fleet Services Steve Jastrow responded to the results and said the decision to outsource certain operational responsibilities can often be a difficult one for businesses, but there are some significant benefits that can be gained by taking this approach to fleet management.

"Companies that lease their fleets tend to be more active in utilising programs that assist with managing total cost of ownership and safety," Mr Jastrow commented.

"While limited capex is a big challenge for fleets that own versus those that lease, either model can benefit from added services that bolster compliance, maintenance and the overall safety of their drivers."

The research also revealed some other interesting differences between the two styles of fleet management, with a difference in the proportion of businesses making use of things like remarketing services, outsourced maintenance services and safety programmes.

Indeed, just 26 per cent of firms that own their own fleets reported use of outsourced safety services to improve the abilities of their drivers, compared to more than half (53 per cent) for lease vehicle businesses.

Driver safety should be viewed as one of the most important aspects of effective fleet management and it is therefore surprising to see such a large proportion of both self-owned and leased vehicle users that do not presently have systems set up to bolster skills in this essential area.

Posted on 26th January 2015

< Back to Latest News