AS THE Bank of England predicts a recession in the final quarter of 2022, there are new calls for fleet managers to consider increasing the share of their fleets using flexible leasing.
The combination of high inflation, rising interest rates and the energy crisis are forecast to impact economic activity at the end of the year significantly. The recession is expected to last five quarters before a period of weak growth that will last until 2025.
SOGO mobility is calling for fleet managers to consider greater use of flexible leasing that allows cars and 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.”
SOGO has grown rapidly in the last 12 months with its ultra-flexible approach that provides leasing from one to 12 months for cars and LCVs.
It is also supporting the transition to net zero through purchasing carbon offsets from the bp Target Neutral service, which helped SOGO customers offset over 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.
