Read more about why the idea that vehicle rental is just a short-term solution is becoming archaic.

1. By Nigel Frost, senior strategic account manager, Northgate
T
here is a long-held belief among businesses that vehicle
rental is a short-term arrangement that provides a tempo-
rary solution to a logistical conundrum.
While this was perhaps once the case, the growing truth
is that the short-term, fixed model is becoming outdated,
as the world of business becomes more connected and a 24/7 philos-
ophy is observed across all sectors.
Businesses large and small are now turning to flexible solutions
across all aspects of their organisations, and longer-term arrange-
ments that allow for forward planning, while still offering room to
adapt, approach. Put simply, modern businesses are seeking to boost
fleet mobility while reducing the headache associated with contract
hire or purchase – easier than it sounds, despite misconceptions.
Differing approaches
Northgate realises that every business is different regardless of the
sector it operates in and, as such, different approaches are required
when it comes to fleet acquisition.
Some fleet managers understandably have reservations about
long-term commitment to rental, and initially may look at only imple-
menting this approach in a small proportion of the fleet. Often the
results of this will speak for themselves, and a business which has
rented only a small proportion of its fleet will begin to consider rolling
out a long-term model across the entire fleet.
The conundrum is less common among larger fleets, which are
increasingly becoming aware of the value of long-term rental and
the freedom and flexibility it provides. A commitment to a vehicle
supplier should never result in hands being tied.
Case study: Enserve
One of Northgate’s biggest clients is Enserve, a leading provider of
support services to the utility sector, which has its own client contracts
that range in length and requirements.
Generally, these contracts last between three and four years, but
the nature of the business means that terms can often alter part way
through the contract, requiring a change to the type and number of
vehicles it needs to carry out its duties. Similarly, contracts completed
ahead of schedule can result in a surplus of vehicles if they have
been acquired through contract hire or lease agreements, leading to
termination penalties or new lease costs.
Seeking a solution to this problem, Enserve turned to Northgate,
with its flexible agreement enabling the utilities provider to avoid
such costs. Not only does Northgate allow vehicles to be handed back
without penalty, but no upfront deposit is required prior to taking new
vans, while the size of the fleet can be increased whenever neces-
sary. At present, 450 vehicles in Enserve’s fleet of 1,000 are provided
through Northgate long-term flexible rental, which has brought about
a significant reduction in costs across several areas.
The all-inclusive package provided to Enserve includes vehicle
trackers, speed limiters that minimise fuel wastage and unnecessary
wear, and a unique management information (MI) portal that have
combined to save the utilities provider more than £30,000 per year.
All vehicles come with an inclusive service, maintenance and
repair (SMR) package, as well as proactive scheduling of SMR events
and replacement vehicles, meaning disruption to Enserve’s business
activities is minimal and the companany can maximise opportunities
while meeting customer needs.
Paul Brown, head of group fleet at
Enserve, explains that some new
contracts require his company to
increase its fleet by 100 vehicles or more
inside a one-month period, necessitating
effective and immediate logistical
support to get the vans on the road as
soon as possible.
“When we looked into the service from
Northgate, the benefits of rental as a
viable long-term solution were clear,”
says Brown. “We discovered they could offer the same vehicles at
the same price and with the same specialised equipment as contract
hire and leasing suppliers, but with the added benefit of flexibility.”
Complimentary technology
Thanks to Northgate’s complimentary MI portal, which would have
cost Enserve £10,000 a year to outsource, the company has visibility
over its fleet at all times, with users able to view details of their vehi-
cles, ensure they are compliant and up-to-date with MOTs and
services, and also access and download reports.
As with any business, it is impossible for products, work or services
to be provided if the experts required to do it are not in the right place
at the right time, and this is something of paramount importance to
Enserve in the utilities industry. And the business benefits extend
beyond financial ones, as employee motivation and training can be
influenced through Northgate technology.
Tracking data can be used to advise drivers on smarter motoring
techniques to help reduce fuel spend and the frequency of repairs
and replacement parts, something that has saved Enserve £20,000 a
year but has also resulted in the creation of a driving league that
offers prizes to the company’s safest drivers.
Rebecca Sutherland, national strategic account manager at North-
gate Vehicle Hire, says the company has been able to provide
Enserve with a fully flexible, transparent package that not only
responds to ever-changing client needs, but also provides a high
quality service at an affordable price.
“Our relationship with Enserve
demonstrates that flexible vehicle hire
is much more than a short-term option,
with our flexibility and complimentary
products allowing us to provide a full
fleet solution for businesses,” she says.
A strategic solution
Having an open partnership with your
fleet supplier enables a more strategic
approach. By moving to a long-term
rental model, the entire life cost of the fleet is reduced, while mainte-
nance is taken out of the client’s hands, providing both cost and time
savings. The result is minimised logistical disruption, with vehicles in
better condition and on the road for longer, reducing downtime and
sustaining fleet performance.
The perception of vehicle rental being short-term is archaic and
needs to change; businesses of all sizes in every sector can benefit
from a long-term, flexible model that removes the cost and worry
associated with fleet management and allows time and funds to be
allocated to the core business.
Northgate has sites across 77 locations in the UK and Ireland, with
its head office in Darlington. For further information please visit:
northgatevehiclehire.co.uk.
FOL LOW T H E L E A DE R: V E H ICL E R E N TA L
Vehicle rental is
no longer just a
short-term solution
Old model discarded in favour of flexible, long-term arrangements
“By moving to long-term
rental, the entire life cost of
the fleet is reduced, while
maintenance is taken out
of the client’s hands”
For more information, please visit: northgatevehiclehire.co.uk email: info@northgatevehiclehire.co.uk or phone: 0800 0125 176
Northgate’s national network of wholly owned, fully equipped workshops allows for local, convenient SMR
Fit for purpose: Northgate
can fit specialist
equipment such as
internal racking, roof
racks, pipe holders
and beacons