Grand Union Housing Group (GUHG) has switched to a fully outsourced contract hire solution for its 45 light commercial vehicles with Ogilvie Fleet.
GUHG has historically purchased its fleet vehicles but when health, safety and business services manager Richard Pearce reviewed the most cost effective acquisition for the Group's vehicles he settled with Ogilvie Fleet.
Pearce said: “Value-for-money is clearly vital, but the key reason for opting for contract hire and moving away from outright purchase was that it delivered budgetary simplicity due to monthly fixed costs.
"We previously found that service, maintenance and repair costs could escalate rapidly in the final year or two of a vehicle’s operating life and that could impact on budget certainty.”
Utilising the Deloitte modelling tool, Ogilvie Fleet identified that contract hire was the most cost-effective funding mechanism for the procuring of vans by GUHG.
Vauxhall was selected as the supplier due to its ability to meet cost, vehicle specification and van delivery. Additionally, Ogilvie Fleet involved preferred vehicle conversion specialist Bott to equip the vans.
The all-diesel van fleet, which operates over a five-year/75,000-mile replacement cycle, is largely comprised of Vivaro panel vans with tippers based on the Movano chassis cab, replacing Ford vehicles.
Pearce said: “The new Vivaro will be built in Luton from 2019 and as an organisation operating in Bedfordshire and surrounding counties and employing local people, we are delighted to be supporting another local employer by operating Vauxhall vans.”
Ogilvie Fleet’s director of sales Jo Clark said: “Our detailed analysis of GUHG’s van fleet requirements from acquisition costs through to operational requirements has provided the organisation with a fleet of cost-effective, modern, smart and efficiently converted vehicles along with a 24-hour support service ensuring vehicle mobility and driver safety.”
Pictured: (from left) GUHG health, safety and business services manager Richard Pearce, Ogilvie fleet director of sales Jo Clark and Bott sales director Stephen Turner.