A Key Ally of the Construction Sector

5 min to readFleet management
Vehicle fleets in construction companies are made up of different units that are subjected to very demanding and intense schedules which results in them being exposed to endless risks on a daily basis. Along with the unpredictable and temporary nature of the construction business, the current situation and the changes in the pace of work, this means that one of the best tools available is flexible leasing.
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The construction sector is one of the biggest customers for leasing, both because of the high volume of units needed and because of the diversity and variety of models that projects require.

Virtually any type of vehicle can be included in a construction company's fleet: Off-road or utility-type vehicles for use by skilled personnel. Light commercial vehicles of different sizes and capacities for transporting equipment, all kinds of loads and people. Small trucks for moving heavy loads or large industrial vehicles if required.

Construction companies also add vehicles to their fleets for support during the transport of all types of special machinery (road rollers, dumpers, cranes, trucks, wrecking balls, etc.), vehicles that are very convenient to hire with the flexible leasing option..

Depending on the type of work to be undertaken, construction company fleets, especially those of larger companies, need a wide and versatile catalogue that the automotive sector can offer.

The vehicle you need at the right time

When choosing a vehicle in the construction sector, what´s important is the function and utility to be covered, as well as comfort and safety for the person who’s going to drive. For smaller companies, the vehicles in their basic fleet are the ones in which the company manager travels in and ones that meet the main needs of the company. The option of flexible leasing is very attractive so that a different vehicle can be chosen in specific cases, depending on the needs of the building project.

In construction fleets, what really counts is having the vehicle you need when you need it. This has been particularly evident in the various phases of lockdowns that the pandemic has brought about.

The smartest concept for companies that have been able to adapt to this situation has been to ensure their mobility through leasing, rather than long-term contracts or purchases. This has given them a competitive advantage in having the right vehicle. Circumstances have finally convinced us to think in the short and medium term, and fleet managers are indeed aware of this.

Avoiding debt and long-term commitments

Watching vehicles sit idle while companies continue to pay purchase or lease payments has caused many business owners losses that could be alleviated with a change of focus in their flexible leasing operations.

In this type of leasing contract, the customer does not choose a specific car, but a category or market segment. The leasing operator provides the customer with a new or used car (usually up to 24 months old) from among those available at the time.

For construction companies, using flexible leasing is an option that prevents them from going into debt to solve their mobility needs. As a leasing operation, it is a tax-deductible expense that allows them to use the company's capital to generate assets of greater value and profitability for the company. In addition, with flexible leasing, they avoid the long-term commitments required by fixed leasing operations and the possible penalties for cancellation

Mobility factors in construction

Seasonality is very important in the activity of construction companies. It’s essential to consider this in the development of the construction project, depending on the type of project, worksite, and of course, the weather at the site. This will prevent incidents with vehicles or unforeseen stoppages during the duration of the construction work.

Vacation periods for workforces is another factor that alters the activity of construction companies, and another of the advantages that flexible renting provides them with. As a general rule, companies linked to the construction sector close for 15 days in August and another 15 in December, practically ceasing all their activity during these periods. With flexible leasing, vehicles can be returned during those days and recovered immediately on the dates indicated by the company itself, with the consequent cost savings that this entails and without any type of penalty.

Expand or reduce the fleet when needed

Flexible leasing is an indispensable tool for configuring the ideal fleet for companies and self-employed workers in the construction industry. There are many advantages and versatility offered by FLEXIBLE RENTING for this sector.

  • Adapting according to the duration of projects. Companies can adjust their leasing operations to the expected duration of their projects (months or years). Extending or shortening the duration of their contracts according to the actual duration of the project can lead to significant savings, which would be more disadvantageous in fixed leasing or purchase agreements.
  • Taking care of a vehicle breakdown quickly. Depending on the distances involved, the leasing operator will provide you with a new unit, the same or a similar one, to replace the damaged one, in just one or two days.
  • Vehicle replacement, for example, when construction work is progressing and there is no need to have a certain number of units in the fleet, flexible leasing operations allow companies to return them to the leasing operator and save money. On the other hand, if a larger number of vehicles are needed to speed up the work, new units from the contracted range can be added to the fleet overnight.

In business and economics, uncertainty is one of the uncertainties of our time that we have learned to live with. Flexible leasing helps to eliminate this, hence the current popularity. It removes doubts and uncertainties regarding the mobility that companies need to manage their operations and business relations. This is why, for construction companies where every working hour counts in order to meet their delivery commitments, flexible leasing has increasingly become an indispensable tool.

According to data from the Spanish Vehicle Renting Association (AER), 65% of the units contracted under flexible leasing are commercial, industrial, vans or pick-up vehicles, and barely 35% correspond to conventional passenger cars of all types. This means that the vehicles most commonly used for work purposes allow for greater flexibility in their contracts, which companies and fleet managers take advantage of in order to save costs in their fleets.

We hope you've found this information useful and if you’d like to know more about our flexible leasing, please visit this page

Published at March 25, 2021

More about Fleet managementFlexible leasingServiceFlexibility
March 25, 2021
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