Companies are investigating how they fund and manage their vehicles in the aftermath of coronavirus.
The disruption of the pandemic has prompted many businesses in Central Europe to review their fleet operations, and in particular how they finance their vehicles. In the face of economic uncertainty, fleet decision makers are exploring the advantages and disadvantages of different funding solutions from the perspective of cash flow, tax, and risk, as well as weighing the benefits of outsourced against in-house fleet management.
These reviews are complex and gain hugely from the support of a partner with expertise in the local markets, such as Business Lease, which has offices in Czech Republic, Hungary, Poland, Romania, and Slovakia.
The different approaches adopted by a few new Business Lease clients in the region provide clear examples of how fleet solutions are individual to the companies they serve. While both companies are switching from purchasing to operational leasing, the first has decided on a gradual process, only replacing cars aged four years and older with new lease vehicles. Its transition to leasing will take three years and, in the meantime, Business Lease will provide full fleet management services as it integrates with the customer’s processes and drivers.
The second fleet has decided on a sale and leaseback of cars under one year old and will replace its older cars with leased models when they reach four years of age. In this case, the transition to operational leasing will only take two years, but we will be delivering fleet management services from day one, so all drivers will get to know Business Lease. This customer also opted for partial electrification.
Transitioning to other powertrains such as to electric vehicles also underline the importance of working with a supplier with in-depth local knowledge.
Figures published in September by ACEA, the European vehicle manufacturers’ association, revealed that Poland has only 0.4 public chargers per 100km of road, compared to 47.5 chargers per 100km in the Netherlands. The situation is little better in Romania (0.5 chargers per 100km), and while the trajectory towards electrification is common across Europe, the speed of development differs enormously. This is an important consideration for any businesses looking to make commitments to zero emission vehicles and have offices in Central and Eastern European countries.
Business Lease uses its E-Mobility QuickScan tool to identify which vehicles of a client’s fleet could transition to battery power without compromising business operations, considering driver route profiles and their local and regional charging infrastructure.
Finally, with the economic impact of coronavirus still hard to forecast, some companies are opting for a more flexible approach to employee mobility while they assess their recruitment needs and future growth prospects. Business Lease has developed a long-term rental solution for these customers, keeping employees mobile during their trial periods, and avoiding long-term vehicle commitments until the dust settles on the pandemic.
Contact Business Lease to receive the updated E-mobility Fact Sheet, showing you the latest data about electric vehicle adoption and charge point infrastructure in Central Europe vs. West Europe. Go to www.businesslease.com or for more information e-mail firstname.lastname@example.org.