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August 18, 2009updated 12 Apr 2017 4:33pm

Square 1 saves client £450,000 through LPG van lease

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.

By Fred Crawley

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

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