VFS understands our business and everything moves along smoothly
Steve Birch, Managing Director of JPE Aggregates, explains why he turned to VFS to help supply the Volvo FMX trucks he uses in his fleet.
We used to purchase our vehicles outright, but when the recession hit and we had less work on our order books, we had 10-15 trucks parked up and unused. We found that the value of them was less than expected, and we weren’t prepared to sell them at those prices, so it was a very costly time for us.
“When things improved, we decided that we didn’t want to be at the risk of a lower than expected residual value again, so we moved to a contract hire model of leasing and service. We have been using this financing model for about 10 years, and have around 30 trucks at any one time, that we keep for three years. In this way, our Volvo Trucks dealer provides a routine service every six weeks as well as an annual full service.”
Finding solutions to challenges
“The trucks are in warranty for three years and they are generally extremely reliable without any major issues for repair, so that’s good for uptime. We work out a service plan with the dealer and usually drop the trucks off at the end of a shift, so they can be looked at overnight and are ready for collection the next day.
How does VFS create value and drive loyalty?
“We chose to use VFS as they provide good rates and good customer service. They are straight forward and easy to deal with as all the Volvo information is in-house. We work out a deal with them at a fixed cost per month for leasing and service, so that gives us certainty for our outlay. They understand our business, the finance is suitable, and everything moves along smoothly.
“There is a strong relationship between Volvo Trucks, VFS, the dealer and us. We have been a loyal customer of the Volvo Group for 20 years, so I would expect them to look after us – and they do that very well.
What does the future hold?
“The market is extremely good at the moment – better than expected, and we anticipate a growth of 10-15% by the end of 2019. If business does continue to improve, we will look at increasing our fleet, and we will certainly consider using more Volvo trucks and VFS, if the price is right!