Manufacturers have been accused of profiteering from the shortage of new cars and vans as demand continues to outstrip supply.
Fleets are facing long lead times, price rises and, in some cases, having to order vehicles without knowing what they will cost when they are delivered.
Steep and frequent price rises for new vehicles, compounded by the rapid step-up of interest rates, are forcing constant reviews of lease rentals, according to the British Vehicle Rental and Leasing Association (BVRLA).
It says the manufacturers’ absence of price protection after an order has been placed is leading to uncomfortable conversations with customers about raising rentals before a vehicle is delivered.
BVRLA chief executive Gerry Keaney said: “Vehicle supply remains the number one issue. The lack of price protection from vehicle manufacturers is being compounded by delivery times extending.
“Leasing companies are often unable to give their customers accurate costs before tyres have hit the Tarmac.”
Fleets have also reported that old orders, agreed before a price rise had been introduced, are being delayed or cancelled, whereas vehicles ordered after the increase are being delivered. “We know the market is in a bad situation – everybody appreciates that,” said Matt Hammond, head of fleet at Altrad Services.
“We’re changing our expectations; we’re changing our lead times and understand this is where we’ve got to be. But this is going to stick in people’s memories for a long, long time.
“We’re being told to order stuff without being given the price and we’re getting used to seeing orders cancelled at the eleventh hour.
“We’ve all got to take the pain together and, if the manufacturer is trying to earn a fast buck out of it, in the long run, they’re going to suffer.”
Hammond is calling for more honesty from manufacturers. “If you haven’t got it in, you haven’t got in, let’s be fair, let’s be open,” he said.
“I’d rather a supplier say to me that he can’t do it, or this is the price and give me that option. Don’t get me on a hook and six months down the line and then we’re in a position where we’re having to pay another 20% for a chassis.”
Chris Conners head of facilities and fleet at Countryside Properties, also wants transparency from manufacturers. He said: “If it’s explained and evidenced as to why costs change, then we can get our heads around it. But, at the moment, it feels like that’s not the case; it feels like it’s going to the highest bidder… and that’s why we will have short memories around how we’re treated.
“For me, it is about understanding and working together in what are difficult times for everyone.”
