Unless Jeremy Clarkson is on the TV, the mention of the word ‘car’ is usually connected with something negative.

Statesmen are not oblivious to this, and all sorts of new legislation covering health and safety, the environment, smoking and mobile phones are likely to make life far more challenging for fleet managers.

Companies already have to ensure any vehicles used for work, whether they own them or not, are safe and employees fit to drive them. Failure to do this could result in prosecution for manslaughter, and a new bill is steadily moving through Parliament that will make any such prosecution easier.

Using a hand-held mobile phone when driving is now illegal, with offenders instantly getting three points on their licence and a £60 fine. And if they’re involved in an accident, a far heavier charge can be brought. Hands-free sets aren’t necessarily the answer, either, as if the accident time matches the call time, the police may still push for a driving without due care and attention charge.

The smoking ban due to come into force in July this year applies to cars as they are an ‘extension of the workplace’. Only vehicles for the sole use of one driver can be smoked in and all others require ‘no smoking’ signs.

Last but by no means least is the growing concern over climate change. Rising green taxes and charging mean that the days of carefree gas guzzling are over.

FLEET MANAGEMENT

The good news is that there are now technology and services available to help you deal with the increasingly complex legislation. If your fleet is small, you might be able to cope with basic offi ce software, but as it grows spreadsheets and other lists will become unwieldy and may become a full-time job to manage.

Jaama, a fleet management software company, launched its Key 2 product a couple of years ago to answer this need. It links your fleet data to other company areas, such as human resources and payroll, and also imports fleet information from external providers, such as leasing companies and suppliers.

On top of new software for the office, there’s also new in-vehicle technology that enables you to keep track of your fleet while it’s on the road. ‘Black boxes’ can be added to vehicles which send back data to the office. Mobile phone company O2 has teamed up with Cybit, which makes the Fleetstar product range. This gives you a real-time tracking system, which enables you to follow your vehicles, as well as ensuring you are fully compliant with the law. Fuel consumption can be correlated with mileage, speeding drivers can be noted and standing periods and detours are also identified. This means you can spot problem drivers and take action based on hard facts.

Furthermore, these ‘black boxes’ can also be linked to navigation devices enabling drivers to choose the fastest and least congested routes. The blue cameras you will have seen on the side of motorways are all monitoring traffic flows and speeds, and now the technology is available on the market for you to benefit from it. It’s not that expensive either – Cybit’s Fleetstar Reporter is offered at 75p a day per vehicle.

If all this sounds a bit too ‘Big Brother’, you could always outsource your fleet management. The car leasing industry is huge and highly competitive, and many offer management services. Getting someone else to handle your fleet can save you a lot of time and allows you to concentrate on your core business. Vehicle broker Platinum Fleet Management can find the cars, perform driver checks and enable you to gain information on your fleet through its in-house software.

FUEL ISSUES

A couple of years ago, it was predicted that fuel prices in the UK would be in excess of £1 per litre by now. Thankfully, the market has settled down a little, although, with petrol at about 90p a litre, fuel is still a major overhead for any firm with a sizeable fleet. Company car drivers have long seen expenses as something of a perk, although with costs so high you would be well advised to find other ‘benefits’ for them.

But there are ways of spotting excessive fuel consumption when it is matched with mileage. This can be caused by drivers accelerating too hard and driving too fast, incorrect tyre pressure, or using the company credit card to fill their partner’s fuel tank up.

Fuel cards can be a good way to limit excesses. Drivers’ names and registrations can be put on cards, so they can only be used for one vehicle. It should also mean a good rate, even if your drivers fill up at a more expensive petrol station. Most oil companies provide them, and to sign up you’ll have to undergo a standard credit check. To find the best card for your needs, check out www.fuelcards.co.uk.

Cheaper and cleaner fuels are being vaunted as another way to cut costs and emissions. Liquefied Petroleum Gas (LPG) came out to much fanfare a few years ago, but its failure to truly capture the market displays a problem with greening your fleet. You can’t run a car on a fuel unless there is the infrastructure to support it and vice versa. LPG is simply not to be found at many stations and, as a result, buyers have been reluctant to make the switch.

GREENING YOUR FLEET 

Everyone is going green these days – or at least they want to be seen to be – and the car industry is being pulled along too. Getting more mileage for fewer emissions is environmentally friendly, as well as cost-effective, although in car industry terms it is still early days. The Toyota Prius hit the market back in 2001, and now its Lexus division is also adding hybrids to its range. The Honda Civic is now also available as a half fuel/electricity combination, and other manufacturers are following suit.

Even the makers of gas guzzlers, such as BMW, appear to have caught the green bug, and are releasfuel ing a fleet of hydrogen cars later this year – although they won’t be commercially available.

Electric cars have been used by local authorities keen to ‘do their bit’. However, with a top speed of 30mph and a range of just 40 miles, they’re hardly likely to replace most fleets.

Hype aside, the road to a greener future is still a long one. Veronica Whittingham, from car brokerage Platinum Fleet Management, says that, although she has had clients who have bought greener vehicles, such as the Prius, most don’t appear to be choosing in terms of carbon dioxide emissions.

“Everyone wants to say they’re green, but ultimately sales jobs need to be attractive and sales reps are still pushing for the top cars,” she says.

However, with London’s Congestion Charge now at £8 per day (hybrids are exempt) and with cities such as Edinburgh, Leeds and Manchester considering similar policies, your business might well start to feel the pinch.

“Fleet cars go on a three-year cycle, so perhaps with price increases and extension to the Congestion Charge, as well as more concern about climate change, more companies switching to greener models could yet happen,” Whittingham adds.

LEASING VERSUS BUYING

Although some companies might be the exception, the likelihood is that if you are going to get a fleet, you will be looking to lease rather than buy. Buying cars outright is an enormous outlay of cash for what are depreciating assets. Leasing on the other hand means that you will be getting new vehicles for a monthly payment. Additional benefits, such as servicing maintenance and breakdown costs, can also be added to keep you up and running.

Typically, long-term car leasing deals will last for about three years and you or the driver is often given an option to buy at the end. If there is an option to buy, you can claim capital allowances. If not, you can claim the car as a cost on your balance sheet and get immediate tax relief.

GETTING THE BEST DEAL 

Fleet buyers are often well looked after by the motor industry and there is a lot of competition when it comes to buying vehicles. As a company buyer, you can nominate a particular dealer for your leasing company to deal with. Exclusive deals of this kind get you a discount, but the savings don’t stop there. You can also get a discount from the manufacturers if you buy a fleet, known as a volume- related bonus or VRB. Leasing companies can provide quotes quite quickly over the phone or by email, so get a few offers before buying. There’s a big choice, including Siemens, Lombard Direct, Lloyds TSB and Lex Vehicle Leasing, to name but a few.

Finding a company that’s competitive is a good start, but it can also be a good idea to work on the relationship and see if repeat buying means a better deal.

“It’s a competitive industry, so shop around,” says Dirk van Dijl, chief executive of car sharing company CityCarClub. “However, I think a bit of loyalty can work too.” Also, some leasing companies have special deals with certain manufacturers, so find out which and see if it matches your deals.

If you use a leasing company, then you will have to stipulate a maximum mileage fi gure for the car and will have to pay an excess charge if you go over it. Also different companies offer different deals in terms of maintenance, service and repairs. Know what you want before you buy and then check the small print with reference to the criteria you’ve set down.

PROTECTION

As a business owner you have a ‘duty of care’ towards your staff, and failure to meet it means you could fall foul of both criminal and civil law. It is essential that you ensure your staff are up to driving their vehicles to the standard required and that the vehicles are legal and roadworthy. Some companies allow staff to use their own cars for work purposes. In such cases, it’s even more important that you have copies of insurance documents, MOT certificates and vehicle ownerships details.

“The collection of such documents should be made part of a process where staff are told of the laws regarding mobile phones, smoking and other relevant road issues,” says Nasar Farooq, health and safety manager at Croner. “You should also ensure your staff are fi t to drive and ask them if they are, for instance, suffering from diabetes, and that they could pass an eyesight test.”

Horror stories of staff not adequately trained to drive vehicles do the rounds of the motor industry. Veronica Whittingham recalls one company that interviewed a woman during university and then hired her after she graduated. At the interview, she told them she had passed her driving test and was prepared to drive for work. On joining, she was given a high performance car and her first day ended with a fatal accident. She had not actually driven a car since passing her test three years earlier and the car was too powerful for her. Would you have put such a person in that position? The courts might not think you have complied with your duty of care if you did. You owe it to yourself and your staff to treat your fleet with caution and care.


Case study: Making an impact with your fleet

Company: The PC Guys

Lance Batchelor, founder of computer repair and service company the PC Guys, cares deeply that his company projects a strong brand with its service. Therefore, he felt it necessary that his engineers all drive the same type of vehicle branded with PC Guys’ logos, contact information and basic proposition.

The company leases all its vehicles through Lombard Direct and Signs Express add the branding.

The former Vodafone marketing director spent a lot of time choosing the right vehicle before deciding upon white Citroen C2 vans, and plans to continue using that type until he has a fleet of about 50.

“We want to project an image of consistency and having engineers arriving in their own cars was not working,” Batchelor says.

“Vehicles are very important to us as they are what people first see when the engineer arrives.

“We also get a lot of calls from customers who have seen the vans on the road and have taken a number.”