In today's fleet market, there seems to be pressure coming from all angles, from both cost and the requirement to follow environmental and sustainable practices and social policy. Companies must future-proof their fleets, or get stung.

The much debated and ongoing issue of fuel is still top of mind. Although price at the pump has dropped somewhat, but how long will it last? Can fuel companies blame us for being sceptical?

Fuel has had a major impact on the residual values* of the large 6-cylinder category of vehicle. There has been a permanent mind-shift to find alternatives. However, this can present obstacles for companies with Employment Agreements in place that specify a certain type of vehicle for remuneration purposes.

"For an employee who has been driving a large 6-cylinder vehicle for the last few years, it can be difficult to convince them to change to a recognisably sustainable vehicle such as, for example a Toyota Prius", says Charles Willmer, Managing Director LeasePlan New Zealand.

That's where your leasing company can advise on the other options that are available, such as for example, the 4-cylinder diesel SUV that is not only more sustainable and cost-effective, but is seen as a lifestyle vehicle.

"There are many more choices out there in the market now, which makes it much easier for the HR Manager to satisfy both employee and Company needs", says Mr Willmer.

Where Employment Agreements allow (in some cases employers have offered a one-off payment to allow changes) some companies have reviewed fit for purpose diesel or hybrid makes. The Ford Mondeo is an example of a high-volume mainstream make to go diesel, along with the likes of Hyundai, which notably have diesel throughout their product range. It makes perfect sense in the long-run, when faced with the choice between petrol and diesel/hybrid. It's a no brainer.

Pressure from the current recession on car manufacturers is going to be a major factor for supply of new cars into New Zealand. Our market volumes, being low by global standards, expose us to stock availability issues.

Demand for new cars has been low due to the recession. Issues such as cost of higher interest rates for dealer stock, reducing sales volumes and the availability of floor plan finance are having far reaching impacts on the industry and the way it is currently structured.

"Our advice to Fleet Managers is to forward plan aggressively, anticipate your termination dates so as to avoid over-run and ensuring that you are aware of vehicle financiers' requirements in relation to termination dates" says Mr Willmer.

So stay in touch with your Fleet Manager who is always abreast of alternatives that can help you to achieve your environmental and sustainability goals.

* Residual value is the re-sale value of a vehicle at the end of its leasing term.
* Floor Plan Financing is the cost of the car dealer financing stock and providing sales aid finance products to its clients.

About LeasePlan: LeasePlan was established in Holland in 1963 and consists of a growing international network of companies engaged in fleet management and finance activities. They employ almost 6,000 people in 30 countries. In total, the Company manages 1.3 million vehicles worldwide and has a consolidated lease portfolio of €14 billion. LeasePlan has held a universal bank licence since 1993 and is regulated by the Dutch Central Bank. They established operations in New Zealand in 1993. For further details please contact Charles Willmer (Managing Director) on (09) 529 3220 or infoLPNZ@leaseplan.co.nz.