Wheeled asset and IT specialist Square 1 Leasing says it could
save a lessee up to £450,000 over 5 years, by combining lease
finance with conversion of a van fleet to run on liquefied
petroleum gas (LPG).
Square 1 Leasing, set up in February last year by IT
distribution firm Square 1 Products and fleet lease expert Andrew
Poole, has already supplied four LPG vehicles to Lancashire based
firm Hirst & Danson, as the first step in replacing a 20
vehicle diesel fleet.
According to Hirst & Danson health and safety manager Joe
Makepeace, this has dropped fuel costs for the vehicles from £1.31
per litre to just 50p per litre.
Square 1 explained that the upfront costs of leasing the new
fleet would mean a net cost to Hirst & Danson in years one and
two, but an operating cost saving of £250,000 over a three year
term.
Furthermore, Square 1 has negotiated a subsequent two year
full-service and maintenance agreement for the vans, that could
potentially lead to an overall saving of £450,000 over five
years.
Beyond these savings, said Andrew Poole, the more
predictable nature of costs under a service and maintenance
inclusive contract provided a significant operational benefit to
the customer.
He said that trading under the name LPG Fleet Solutions, Square
1 had recently initiated a further two LPG van fleet replacement
deals including refrigerated vehicles with clients running vehicles
on high mileage semi-urban applications.
Another major benefit of LPG is that it classed as a green fuel,
mitigating congestion charges in London and allowing businesses to
win contracts stipulating a show of environmental
responsibility.
Fred Crawley
