Days Contract Hire records 17% growth in shrinking company car and van leasing market

 
Nov. 24, 2014 - PRLog -- Days Contract Hire has seen its fleet size increase 17% over the last decade in a leasing sector of the UK company car and van market that has shrunk, according to new research.

In the period 2004-2014, Days Contract Hire saw the number of company cars and vans on its books increase from 8,124 to 9,828 units - a 17% increase - according to the newly published 2014 ‘FN50’ report on the UK’s top 50 contract hire and leasing companies by fleet size.

Over the same period the total number of company cars and vans on the books of the UK’s 50 largest contract hire and leasing fell 8.6%, according to the annual report compiled by trade publication Fleet News.

What’s more since the turn of the decade as the UK recovered from the depths of the 2008/9 recession, Days Contract Hire has seen its fleet size increase 12% from 8,627 vehicles in a sector that has recorded a rise of just 2.6% in the number of company cars and vans operated.

During the last decade as the independent privately-owned supplier saw its fleet size increase, its ranking among the 50 largest UK contract hire and leasing companies has, according to the ‘FN50’, peaked this year at number 19 having been ranked at number 21 in the last two years and at number 30 in 2005 (8,143 vehicles).

What’s more the growth experienced by Days Contract Hire was one of the factors contributing to the rise of parent company, the C.E.M. Day Motor Group, in this year’s Sunday Times Grant Thornton Top Track 250 chart.

The recently published annual listing, which is now in its 10th year and ranks Britain’s leading private mid-market growth companies by sales, saw the Group listed at number 145 - up from 161 in 2013 - based on sales of £205.4 million in the year to December 2013 and an operating profit of £10.9 million.

Long-serving Days Contract Hire director Aled Williams believes the company’s flexibility has been critical to its expansion over the years and the business continues to have growth aspirations.

Mr Williams said: “I hear competitors talk about delivering mobility solutions to the public and private sectors, but that is what we have done for years.

“Our focus on customer service and being flexible in building partnerships with our clients has been critical in winning new business and retaining existing contracts and delivering mobility to their workforce.”

Mr Williams points to, for example:

·         Allowing early termination charges that may be levied on a customer’s vehicles being rolled into the lease rate on another vehicle

·         A policy that allows vehicle contracts to be extended from the day a car or van is due to be returned unless there is a concern about the driveability of the model.

·         An approach to end-of-contract damage charges - a major niggle for many fleet managers with some contract hire and leasing companies - that this year resulted in an average charge across all the company’s defleeted vehicles of just £111 compared with an industry average of £274 (‘FN50’: November 2014).

He explained: “End-of-contract damage charges are a major issue across the industry and some contract hire and leasing companies see them as an income opportunity. However, any charge we levy reflects the impact on resale value of the vehicle and not the cost of repair. Our goal is not to make a damage-related charge on any returned vehicles.

“It is all about giving excellent customer service 100% of the time. It might cost the company money to do it, but we want our customers to have an excellent experience with Days Contract Hire.”

The company has ambitions to grow its corporate business, which currently accounts for about 25% of the fleet with public sector accounting for a further 25% and SME business with sub 50-vehicle fleets accounting for half its book. Approximately 20% of the fleet is composed of light commercial vehicles.

Mr Williams said: “Days Contract Hire is an independent, privately-owned business and we manage all the risk - risk on the client and risk on the vehicle. Unlike many other vehicle providers - leasing companies, brokers and undisclosed agents - we are not at the mercy of the funders’ underwriters as we fund all vehicles ourselves.

“We believe that independence coupled with our flexible approach to business has huge appeal across the public and private sectors where the focus on value for money is continually increasing with fleet budgets being squeezed.”

Ends

EDITOR’S NOTES

Days Contract Hire is one of the leading leasing and fleet management companies offering services across the UK.

Family-owned and run with more than 25 years’ experience, Days Contract Hire has gained a reputation for providing a bespoke service to clients. As a result the company successfully operates a vehicle fleet of around 9,500 vehicles, and continues to build on its strong links with manufacturers and service providers.

Working across all the major sectors of the market, including private and public sectors, Days Contract Hire remains one of the few independent vehicle leasing and fleet management companies not tied to specific lenders or vehicle manufacturers. As a result it is able to offer a highly adaptable and flexible approach on fleet funding, servicing, maintenance and repair as well as the wide range of fleet management-related services.

Days Contract Hire is committed to maintaining the highest levels of customer service and is ISO 9001:2008 and ISO 14001:2004 certified, as well as being recognised by Investors in People.

Days Contract Hire is a member of the C.E.M. Day Motor Group Limited, a ‘Wales Top 20’ company. Founded in 1926, it is one of the largest motor groups in the Principality, employing approximately 500 people at several sites throughout South Wales and England.  The Group is chaired by Graham Day, grandson of the company’s founder.

For more information about Days Contract Hire, visit www.dayscontracthire.co.uk

For further information contact:

Neil Vaughan on
neilvaughan@daysfleet.com or 01792 222160
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