Fleet managers urged to seek flexible leasing

As the Bank of England predicts a recession in the final quarter of 2022, Sogo Mobility is calling for fleet managers to consider increasing use flexible leasing.

A combination of high inflation, rising interest rates and the energy crisis are forecast to impact economic activity at the end of the year.

The recession is expected to last five quarters before a period of weak growth that will last until 2025.

In light of this, Sogo are calling for fleet managers to consider greater use of flexible leasing that allows cars and light commercial vehicles (LCVs) to be leased on a monthly basis.

Karl Howkins, managing director of Sogo Mobility, said: “As the economy faces significant challenges, it’s vital to get the right mix of leasing models.

“Flexible leasing allows short-term demand to be met without the problems of a long-term commitment in an uncertain market.

“Monthly leasing frees capital from the balance sheet that can be deployed elsewhere in the company to fund growth.

“While many managers are not in the position to transition out of traditional lease models immediately, I think it’s useful to start thinking about the mix across your fleet.”

The company said it has grown in the past 12 months with its flexible approach that provides leasing from one to 12 months for cars and LCVs.

It is also purchasing carbon offsets from the BP Target Neutral Programme, which helped Sogo customers offset more than 5,200 tonnes of carbon in its first 12 months.

The overall figure for carbon emissions offset is equivalent to the electricity production of 3,250 homes for one year or 8,900 flights from London to New York.