Whether you have a vehicle fleet at your disposal or are embarking upon starting your own operation, then it's likely that you're well aware of the expenses that can be incurred by the fleet. At Concept Vehicle Leasing we want to help and that's why we've put together a guide outlining 10 ways to a more efficient vehicle fleet.
Reduce Fuel Costs
Fuel cost is a universal hurdle to overcome in attaining an efficient vehicle fleet.
Some fleet managers may cut back on the amount of vehicles used in the hope of running a tighter operation but at the same time this may potentially stunt the long-term growth of your business.
We certainly don't want you to take that course of action but instead take a more methodical approach.
We suggest that you remain aware of potential fuel price fluctuations and keep a proactive fuel management program in place at all times.
Additionally, you should strive to incorporate fuel-efficient technologies, weight reduction of your vehicles and add additional transmission gears for optimum fuel efficiency.
Use the Tax Laws to Your Advantage
Vehicles with the lowest CO2 emissions get the benefit of tax breaks; therefore, it's important you have an associate that understands the tax laws inside and out and can predict the future in this particular field.
Currently, the pertinent authorities utilise vehicle excise duty, company car benefit-in-kind tax and capital allowances as a means to incentivise organisations to operate lower emission vehicles.
Moreover, it's worth conducting an analysis to see how a particular vehicle will be affected a few years into its duty.
Reduce Lifecycle Costs
It's been common practice for fleet managers to excessively operate vehicles far past their optimum economic life.
Naturally, fleet managers may think that prolonging the usage of fleet vehicles is a sound strategy to reduce the overall fleet budget. However, this often results in significant maintenance costs and increased fuel costs as the vehicles mileage decreases fuel economy.
In fact, optimising replacement cycles by utilising economic-based replacement planning tools often proves to be an efficient long-term strategy that can save you money in the long run.
So get underway and start thinking ahead!
Assess the Way You Buy and Sell Vehicles
Most organisations that haven't accessed the way it purchases and sells vehicles for a while could have the potential to save money.
We suggest investigating the manufacturers you work with in order to see whether you can gain any further discount that may be available.
If you need support you should seek out a specialist fleet management organisation to ensure you secure the best deals.
Could a Grey Fleet be Costing You More Than You Thought?
Since grey fleet drivers drive their own cars it can be often difficult to manage vehicle maintenance and gain accurate mileage for various reasons as well as factoring in approved mileage allowance.
Additionally, you need to consider duty of care legislation, where the company will be responsible for grey fleet drivers if an accident occurs.
Unless your drivers drive short distances, it may be worth looking at questioning the efficiency of employing a grey fleet model; you could save a significant amount of money.
Don't be a Scrooge but be Sensible
When it comes to drivers deciding on their next company car most want a variety to choose from; however, with choice, quite often comes cost.
By instilling a sensible business strategy that limits the choice of vehicle availability, you could be well on your way to a resourceful vehicle fleet.
In fact, GE Capital UK has calculated that by removing choice altogether by adopting just one "job need" car and one management model, it would be possible to save £300,000 based on a 500-vehicle fleet covering an average 10,000 business miles a year.
To Buy or Not to Buy, That is the Question
A decision that often leads to fleet managers banging their heads against a wall numerous times but a decision that needs to be made none the less.
Should the vehicles be leased, purchased or hired outright? Many businesses make the decision based on what they've previously done; however, with changing external factors such as taxation and duty of care to take into account it's vital to explore all possible options in great detail.
As a result, it's recommended to consult with a specialist fleet management organisation to ensure you make the right decision in securing a competent and effective vehicle fleet operation and that's where we can step in…
At Concept Vehicle leasing, we understand the current and changing climate and our award winning team will create a truly bespoke solution to your quandary, ensuring that it meets all of your needs as a stakeholder in the vehicle fleet industry.
Are you getting the Best Service, Maintenance and Repair deals
The majority of vehicle leasing contracts come with service agreements and although unexpected charges are unlikely to occur it may be worth exploring alternatives methods of managing and paying for these needs.
One such idea is pay-as-you-go deals. As the name suggests, you only pay for what you need when you require it and with the improved reliability of modern vehicles, longer warranties and more, it's a viable and appealing option that is becoming increasingly popular. Why not find out more by reading about our Serviceplan on Demand option.
Telematics Can be your Best Friend
An important addition to any organisation with a fleet, fleet telematics allow an organisation to run their vehicle fleets to the optimum efficiency.
Essentially, telematics refers to the integration of telecommunication and information processing systems that gather and then make sense of data concerning the way that vehicles are used such as an analysis of CO2 emission.
Additionally, telematics provides information that ensures that fleet vehicles are maintained to requisite standards.
Put simply, Fleet Telematics provides a proven method of improving efficiency, reducing cost and environmental impact, and maintaining a safe and productive fleet. Telematics truly is your best friend.
Use the Right Software
Once you've devised a comprehensive fleet policy, it's important to ensure you stick by it.
While spreadsheets have their place they shouldn't be used as the main software tool to manage your fleet.
Instead, invest in specialist fleet management software, which has been around long enough to increase fleet efficiency by providing highly sophisticated solutions to problems that arise.
You can also integrate route-planning software, which can also help to reduce mileage and bring costs down even more.
With the right software you'll keep ahead of the pack and stick by your fleet policy.
If you have any queries or wish to speak to a member of our knowledgeable team about fleet management please call 0800 043 2050, email us on firstname.lastname@example.org or visit the Concept Vehicle leasing website.