by Paul Marchment, SME development manager, Arval UK.
It pays to take stock of your vehicles and how they are being used. We currently work with more than 450 SMEs in the Swindon area alone, and we will be at STEAM on June 30 offering businesses a fleet health check at the Swindon Business Expo so they can see if they can save money and improve mobility through leasing.
It’s all too easy to think cars can take care of themselves. Whether you own your vehicles or let employees drive their own and reclaim mileage, it’s probably all right – isn’t it?
There are five telling signs that you are probably spending more money than you think – or than you need to – on keeping your employees mobile:
• Lack of finance for company projects
Without the right financial planning, vehicles can be a drain on time and money that can be better invested in projects to drive company growth. Leasing and contract hire can often free up capital as well as making it easier for companies to borrow for development projects.
• Secretarial and admin hours are swallowed up in managing vehicles
Leasing a vehicle can take away many of the admin hassles of ownership. Leases can include road tax, maintenance, service, repairs, and some even cover insurance. You don’t have to chase around dealerships for the delivery date and you don’t have to worry about the value when selling the vehicle after three years.
• Your company doesn’t have a travel policy
Every business needs to plan how employees will travel. You cannot assume employees will make the best travel choices. A travel policy includes all the basics. Do you check driving licenses? Many people admit they aren’t open about points from speeding and other offences. Do you check vehicles have business insurance and a valid MOT? Many drivers admit they buy the cheapest insurance and a private car won’t automatically be insured for business use.
- Your vans are running round half empty
Are you running the right size of van? Getting load capacity and or engine size wrong can significantly increase overall running costs. Larger vans use more fuel, so do your drivers really need all that space or are your vans often underutilised? Conversely, overloading a van that is too small will significantly increase fuel consumption by over-working the engine.
- The car park is full of older vehicles
If your employees are driving around in older vehicles, they are likely to be less fuel efficient, so will cost more to run. Older vehicles may have a higher carbon footprint. An old, battered car may also not reflect the image which your company is aiming to portray.