Based upon our experience in effectively managing the cost of leasing cars, here are our top 10 fleet car management tips for businesses.
- Lease agreements should have flexibility built into them. Short term leases and rolling contracts are often perfect for companies that are small- or medium-sized, especially when the company employs freelancers or sales teams.
- National Insurance savings and tax savings can be capitalized on by SMEs. When companies lease small car fleets, there are opportunities to save on NI payments. In general, when vehicles have lower levels of CO2 emissions, NI payments will be lower for your employees.
- Repair bills can be consolidated. The cost of an accident increases significantly due to rental charges, uninsured losses, and injury claims. Your off road time can be reduced by up to 60% by working through your leasing company to arrange specialist accident management.
- On leased vehicles, up to 50% of the VAT can be claimed back by most VAT registered companies. However, when the vehicle is only used for business, this can increase to 100%.
- It is administratively heavy and time consuming when different accounts are used by employees for fuel. However, cost can be centralised by using a fuel card system.
- A major factor in the cost of running a vehicle is the type of vehicle that is chosen. Leasing companies will help you to determine the vehicle types that are most appropriate for your company based on lifetime cost, instead of cost per mile. This will also impact on the cost of the fleet or commercial car insurance.
- It matters where you are located. When employees are scattered around the country, it is vital that they can contact a local lease provider in order to address any issues with their vehicles in an efficient manner.
- A vehicle management system that is well managed helps to determine how efficient the operation of drivers is and how much each vehicle costs to operate per mile.
- The marketplace for fleet vehicles is constantly changing. It is vital to keep up with the changes to ensure that your fleet remains productive.
- Many SMEs are learning that it makes good practical and financial sense to outsource portions of their business to experts. You can gain expert knowledge by making good use of the fleet management industry.
Running a fleet can take effort and plenty of planning but by taking these tips on board from our experience you stand a better chance of doing so well. Any comments please add them below.
Note: This is a guest post.