Following President Jacob Zuma’s cabinet reshuffle in March 2017, ratings agencies Standard & Poor and Fitch downgraded South Africa to junk status at the beginning of April.
The shock waves were felt all over South Africa as economists predicted the consequences of the downgrade: a drop in the rand, less foreign investment, a hike in petrol, food prices and transport costs, and higher interest rates on purchases including houses and cars.
How will these developments affect the fleet industry and what should fleet managers do to weather this time of economic and political upheaval?
During periods of economic or political instability, businesses need to focus on consolidation.
Since growth is expected to be limited, businesses have to retain their existing customer base. One way of doing this is to streamline procedures and policies to ensure that customers have the best experience possible.
Avis Fleet is flexible: our solutions fit our customers’ needs. We offer full maintenance leasing that simplifies vehicle management.
We take care of maintenance at a fixed monthly rate, and you don’t have to worry about the long term costs and risks of owning the vehicles. This option has a positive effect on cash flow: there is no capital outlay for the period of the lease. Since cost monitoring is fixed for the duration of the contract, you can factor this into your budget as a predictable expense.
Outsourcing your fleet management requirement means you’re also outsourcing administrative burdens, including the payment of licences and traffic fines.
Avis Fleet will send you monthly management reports and provide you with 24/7 realtime reporting to put you in the fleet management driving seat.
Find out more about our fleet management solutions, and contact us directly to find out how to outsource our reliable solutions for your fleet.