Flexibility is the key to growth for new name in LA marketplace
Extra Leasing is a relatively new name in the vehicle leasing and contract hire sector, yet in the three years since being founded, the company reports that it has grown to become one of the UK's leading asset management companies with annual business volumes in excess of £70 million. Nick Egerton, Sales and Marketing Director at Extra Leasing, comments on the company's approach to the vehicle leasing market.
Extra attributes much of its success to the number of vehicles it supplies to local authorities. Recent contracts have been arranged with Denbighshire, Carmarthenshire, Cardiff and Derbyshire County Councils. Other contracts include Coventry and Plymouth City Councils and borough councils such as High Peak and Kettering. Since April 2000, Extra has undertaken £2.2 million worth of business with local authorities.
The vehicle leasing market has seen considerable growth in recent years as organisations concentrate on their core business and outsource aspects of their operation such as cleaning, catering and transport to specialist companies. This is especially true of local authorities who have to keep pace with increasing responsibilities, set against tighter budget constraints. Systems such as Best Value, which replaces the unpopular and inflexible Compulsory Competitive Tendering system, mean that these out-sourced suppliers must meet a number of criteria – cost being a major factor.
Extra may be a relative newcomer in its own right – but the experience of our staff within the leasing and public sector is extensive. All our staff have many years of in-depth experience in the sector.
Range of options
We offer a range of packages, including leasing, rental and contract hire, predominantly within the commercial and specialist vehicle market. We also offer Fleet Management in partnership with PHH – one of the largest names in the sector. With 24 hour cover, 365 days a year, clients can rest assured that their fleet is maintained to strict schedules and standards and receive regular reports on the condition and status of their fleet. Within the local authority sector, this can involve working with the council’s own staff as part of a planned maintenance regime.
Because Extra is not linked to any vehicle manufacturer or finance company, we can find the best vehicle and the most appropriate finance package to meet a client’s unique requirements.
Extra’s parent company, Sanderson Bramall Motor Group plc, is one of the UK’s largest vehicle sales organisations. Being part of such a large group, we are particularly competitive in sourcing ERF, Daf, Iveco and Mercedes trucks, but, because we are not aligned with any one manufacturer, we can source any vehicle competitively.
Our knowledge of the commercial vehicle sector provides us with a rare advantage when it comes to assessing the residual value of contracted vehicles and secures channels for their disposal. This, in turn, allows Extra to offer realistic contract rates.
I would warn clients to tread carefully when considering leasing rates – the cheapest deal may not always be the best. I have had enquiries from people saying they’ve been quoted a particularly low rate and I’ve said, “Take it! We can’t compete”. That’s not to say that we don’t want their business – but often someone has taken a much more bullish view on the residual value of the vehicle at the end of the contract. This may mean a company imposing unrealistic return conditions at the end of the vehicle’s lease. My advice would be to read the small print very carefully because they could be faced with considerable financial penalties.
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