Long lead times for new cars and vans are expected to continue into the second part of 2023 according to Alphabet. With demand outstripping supply, inflation rising as Bank of England interest rates jump to 3.5%, and the cost of raw materials increasing, the vehicle leasing company says that manufacturer list prices have also been an additional source of uncertainty.
A reduction in manufacturer discounts and regular price increases have presented both businesses and employees with challenges when it comes to budgeting for and planning vehicle requirements. And it stresses, a return to ‘normal’ is not on the horizon just yet.
In its Fleet Report 2022, Alphabet highlights how leasing companies have been working closely with customers, manufacturers, and retailers to help manage the impact of supply shortages by expanding vehicle choice lists to include more readily available options, leveraging relationships to access to pockets of stock, and crucially, anticipating disruption.
This has meant planning ahead to get orders in as early as possible - factoring in longer lead times and the need for rental vehicles to help plug any gaps.
Caroline Sandall-Mansergh, consultancy and channels development manager at Alphabet GB, said: “Although global supply chain issues, fluctuating costs, and changes in taxation and legislation will continue to challenge and shape mobility, we’re focused on leveraging the opportunities for innovation and added value that this evolving landscape presents to our business and our customers.”
Last year, unprecedented uncertainty has placed fleet managers under increased pressure, but this is particularly the case for those in charge of small and medium fleets. Businesses with smaller fleets rarely have the benefit of a full-time fleet manager and instead, fleet management is typically part of a much bigger HR, finance or general management role.
