It’s not easy running a fleet of company cars or commercial vehicles.
Firstly, your costs are high; you spend over budget year on year and it seems out of your control.
Secondly, there are so many options for vehicle leasing or outright ownership, it’s almost impossible to make the best decision. And thirdly, you have to keep drivers and employees happy, as well as presenting the right image to your customers.
Ever feel like you can’t win?
However, it is possible to control fleet costs. The best place to start is by looking at your own fleet policy. Simple changes to the way you operate from a top level can dramatically impact your bottom line. Here are a few things to consider:
Be specific about the make and model
Today’s small cars are, well, bigger than they used to be. Smaller cars are cheaper to run, but are just as safe and comfortable as larger models. And make sure you choose diesel over petrol, the higher fuel efficiency will save you money. Be firm about car choices for employees, the car should be fit for business purposes, not a status symbol for the driver.
Incorporate more Pool Cars
A driver only needs their own company car if they are doing a high number of miles. Regularly assess and forecast mileage by driver; if it’s a low to moderate then they can use a pool car. You should aim to reduce the amount of company cars and make pool cars available instead. Again, choose pool cars that are reliable and inexpensive to run, a vehicle with a CO2 rating below 100g/km is ideal.
Consider “whole of life” cost
Fuel efficiency, insurance, servicing costs and maintenance all add up. Make sure you are using all possible information when considering the true total cost of ownership.
Don’t forget your Grey Fleet
Your grey fleet refers to mileage in your employee’s own vehicle. Be wary of mileage allowances seen as an incentive for employees to use their own cars when it’s not necessary, or not the cheapest option. And costs aside, remember that you are liable for work-related journeys, it’s your job to check that the driver has a licence and is insured. Both management and employees can be prosecuted for road traffic crashes involving work- related journeys, even when the driver is using their own vehicle.
Managing a fleet of company vehicles is expensive and complex. But the good news is that there are often savings to be made. When we work with businesses on fleet management we look at over 60 cost areas.
If your fleet management costs are spiralling out of control, we can help.
Simply book a consultation to discover exactly where you can save the most money.