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Flexible friends
Page 52
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With predictions of further economic woe on the horizon, vehicle rental firm TLS is pushing the case for operators to rent their way through the recession.
Words: Kevin Swatiow
Operators are being encouraged to consider hiring vehicles to fill out their fleets, as global economists predict a further downturn in the economy.
Vehicle rental business TLS, which is part of GE Capital, believes a flexible rental deal can minimise risk to the end user. Carl D'Ammassa, outgoing TLS chief executive officer, says that during the recession, TLS has witnessed a "fall-off in traditional daily rental in line with overall reduced activity throughout the economy': He adds: "However, the slack has largely been taken up with flexible rental, which we believe is proving to be the recessionary acquisition method of choice for a number of businesses."
Bleak outlook
The advice comes in the face of the wider news from the Organisation for Economic Cooperation and Development [OECD], which consists of the 30 leading global economies, suggesting Britain remains "deep" in recession and that the country is facing a "bleak short-term outlook': TLS's Advantage scheme allows fleets to hire a vehicle from one to three years with unlimited mileage and no early termination fee. "It helps firms that find it difficult to forecast their van and truck needs," says D'Ammassa.
He adds: "It allows businesses to sidestep potentially problematic areas such as future residual values while conserving cash, the latter being an especially attractive point at a time when funding is often difficult to access."
No penalties
D'Ammassa continues: "More than anything, businesses are still worried about cash flow. They know that it is poor cash flow that kills most companies during tough economic times. What flexible rental allows them to do is take on the van or truck they need without any of the long-term commitment of buying or leasing.
"The vehicle essentially becomes part of their fleet, but the moment the need for it ends, they can hand it back without penalty," he reveals. •