Considering furnishing your workforce with fleet cars or looking to enhance the arrangement you have in place?
A company or fleet car is an essential part of your transport policy as well as being a major incentive for staff. However, a fleet is also likely to be one of your biggest expenditures; UK businesses spend about £20bn on vehicles for employees every year.
The background
Staff can’t always provide their own vehicles and prospective employees will often expect you to provide a fleet car if travelling is a part of the job. The top sales people and executives will typically expect a car as part of their salary package and you need to attract and retain good people. Clients and customers also expect that you will be able to come and see them and sometimes a car is the only way.
Fleet car leasing
The market for fleet cars is very competitive and most major leasing providers have dedicated fleet car departments. As new vehicles are expensive you are more likely to lease than buy in order to spread your costs. Buying vehicles outright would represent a huge outlay for any business and is largely unnecessary as cars are depreciating assets from the day you buy them, offering no minimal return on sale afterwards. Providers will also offer service and maintenance as a part of the package and some will offer insurance as well as health and safety advice. They often include service and maintenance as a part of the lease so disruption from breakdowns should be minimised. Fleet car leasing contracts tend to last for about three years so your staff will always be driving a relatively new vehicle. This projects a good message when they meet clients, breakdowns are less likely and newer regularly serviced cars are safer. However, if you or your staff do become attached to their vehicle then leasing contracts usually have an option to buy included in them.
Fuel cards
Petrol isn’t cheap and fuel will be a big overhead. One way to reduce this is by using fuel cards. You get a better rate on fuel cards than by buying with cash. But also as cards have the names of their drivers it prevents family members of your staff from using the vehicle and then putting it through your company’s expenses. For more information on fuel cards visit www.fuelcards.co.uk
Top tips
• Talk to staff It is a good idea to discuss what type of cars your staff want before purchasing. A top salesman in his favourite type of vehicle is more likely to stay with you than if he is driving another fleet car of the same value.
• Shop around The fleet car rental market is competitive so take plenty of quotes before buying
• Find the right cars for you Checking things such as miles per gallon and servicing costs will save you money in the long-term. If you want to project an ethical image for the business, consider green alternatives, such as the Toyota Prius. And if you plan to give your vehicles signage or a distinctive livery, look at what will best project your brand image, such as the colourful Mini Coopers driven by Foxton’s estate agents.
