A new
lease on life
At a time when fleet managers are increasingly called on to balance
the challenges of whole-of-life costs and employee safety, and
regulators’ increasing focus on emissions’ standards, transitioning
your fleet towards electric alternatives can be a simple and cost-
effective way to deliver results.
WORDS BY DANIEL BRAID
D
eciding whether to buy or lease vehicles
is not a new debate for fleet managers.
In the past, some of the most urgent
considerations came from weighing-up initial
purchase costs vs whole-of-life costs. Now, as
market conditions change and politicians and
investors are prioritising emissions reductions,
fleet managers are increasingly introducing leases
in tactical areas to help them respond at pace.
From a market perspective, there are a number
of models to choose from. The global vehicle
industry has introduced a number of sustainable
alternatives that meet customer demands for
safety and environmental standards, without
compromising capability. Plug-in hybrid electric
vehicles (PHEVs) and fully electric vehicles (EVs)
are now on the market, helping commercial fleet
managers to check-off business requirements
while keeping control of their costs.
One of the leaders in this area is Mitsubishi
Motors, which has developed a simple leasing
solution for a variety of small to mid-sized
operations looking to gradually transition their
fleets. Their Outlander PHEV takes all the benefits
of their Outlander such as a market leading safety
system* including forward collision mitigation,
blind-spot warning and rear cross-traffic alert,
along with 4WD capabilities, and is immensely
practical for drivers who require extensive range
for certain journeys but also want to harness the
energy of battery power for shorter, daily trips.
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“Last year our global PHEV sales were up 64%
year-on-year, helping us pass the cumulative
150,000 milestone” said Mitsubishi Motors
National PHEV Sales Manager Craig Norris. “In
the private market drivers are telling us that in
addition to the electric power source, they were
influenced to buy by our MiTEC safety system
and the quality of handling.”
“In the fleet market, we are increasingly talking
with organisations about tailored leasing solutions
as they work through the best way to implement
more sustainable fleets. It’s a good sign for
companies that have introduced meaningful
corporate social responsibility policies. If
governments and major corporate fleets start to
increase the ratio of electric vehicles on their fleets,
we should expect to see a positive flow-through in
terms of overall running costs, road safety, and a
reduced environmental impact as well.”
The common perception is that electric vehicles
are often considered expensive when compared
to a normal vehicle. However, through its lease
program Mitsubishi has removed many of these
up-front costs, as well as reducing the overall
business costs related to fuel, maintenance and
overall fleet age. Today, Mitsubishi’s PHEV lease
price is comparable to that of a similar sized
SUV model with a traditional combustion engine,
which removes a lot of the risk related to resale
for fleets, and opens up a lot of opportunities.