As part of Crown Commercial Services’ (CCS) total fleet solutions, the Fleet Category has successfully delivered a new commercial agreement for the funding, fleet management and rental solutions for vehicles. It is the 5th generation agreement for CCS, building on previous successes by widening the scope and supplier participation.
Within both the public and private sectors, the vast majority of vehicles are sourced through a financing arrangement, meaning that excellent deals are important. The industry has seen unprecedented change and challenges over the past 12-months, creating a demand for access to specialist expertise and more flexible contracting for fleet managers.
What is Flexible Rental?
Flexible rental describes a way in which you can acquire vehicles and use them within a fleet. In essence, it is the hiring of a vehicle, as opposed to the outright purchase or longer-term commitment of a financial or operating lease.
The daily rental market typically provides you with vehicles for short periods from 1 day to several weeks. Flexible rental offers solutions from 28-days and more, all the way up to 2-years plus.
Flexible rental solutions can, therefore, be used for you to bridge the gap between vehicles taken onto the fleet for longer periods of time, and those spot-hired for short periods. Effective fleet management balances the fleet operational requirements across these solutions.
What are the benefits for fleets?
The use of flexible rental supports you in responding to peaks and troughs in demand for output, for example with seasonal grass-cutting or road gritting. It will also help you continue operations when there are uncertainties or delays in vehicle replacements, due to a change in the business model, new drivers or particularly long lead times for new vehicles built to order.
Leased or owned vehicles will result in lower day rates than rental vehicles due to the longer committed durations. However, the longer term flexible rentals deliver better value than daily rented vehicles which are extended on an ad hoc basis.
When you are purchasing a vehicle outright or setting up a contract hire, vehicles are usually both new and built to order. This means that lead times will typically be at least 10 weeks from order and up to several months in some cases.
In comparison, vehicles which are rented/hired are taken from the suppliers own stock resulting in much shorter lead times.
A huge advantage of a flexible rental over a longer-term lease is that there are no early termination charges. Vehicles will be priced at the rate for the initial estimated rental period, but if requirements change and the vehicle is not needed for the full rental period, it can be returned without penalty.
As vehicles will be hired out for reasonable lengths of time, there are usually no delivery, collection or refuelling charges incurred.
What can you buy through our Vehicle Lease, Fleet Management and Flexible Rental Solutions framework RM6096?
A wide range of vehicles of all fuel types can be leased through this agreement, along with complementary vehicle services. Leases and fleet management services cover those for cars, 4x4s, motorcycles, vans, commercial vehicles, minibuses and coaches. Scope includes everything from standard production to specially modified vehicles. Electric, alternatively fueled and other ultra-low emission vehicles are covered too.
The most popular vehicle financing arrangement available is the operational lease (contract hire) with the option to include servicing, maintenance, repair and other vehicle services.
Independent fleet management services help manage vehicles efficiently and effectively. Services include vehicle selection, acquisition, driver and vehicle administration services, telematics and fuel card management. All of which help in ensuring the health and safety of drivers and vehicles, optimising fleet performance and offering staff benefit schemes.
Access to flexible rental solutions for shorter terms requirements, typically 28 days or longer, is also provided. Flexible rental is usually taken up when you are unable to commit to the longevity of a standard lease, but want better value and more continuity than a daily rental vehicle. It is a good option for “pre-contract” whilst waiting for permanent vehicle delivery. Vehicles are usually available at short notice, using suppliers’ stock of vehicles. They can range from fairly standard to fully bespoke converted vehicles.
What are the benefits of using the framework?
How is the framework structured?
The framework is split into 4 lots
Lot 1 Lease of vehicles up to 3.5 tonnes:
Contract hire, option for service, maintenance and repair, supplementary flexible rental, standard lease management, option for sole supply fleet management and other fleet specialist services
Lot 2 Lease of commercial vehicles:
Light, medium and heavy commercial vehicles, contract hire, option for service, maintenance and repair, supplementary flexible rental, standard lease management, option for sole supply fleet management and other fleet specialist services
Lot 3 Independent fleet management services:
Provided independently from vehicle funders, management of leased and/or owned vehicles, operational or employee benefit vehicles, vehicle and driver management, wide range of fleet services
Lot 4 Flexible rental solutions:
Rental of vehicles for 28 days or longer, full range from cars, light and heavy commercial vehicles, standard build or bespoke, flexible contract terms.
If you would like to find out more about any of the CCS fleet solutions and how they can support you please get in touch and mention ‘Fleet Local Authority Plan’: Call 0345 410 2222
Visit www.crowncommercial.gov.uk To register for access to the CCS Fleet portal visit https://fleetportal.crowncommercial.gov.uk/
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