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.