Whilst a necessity for many businesses, the cost of vehicle leasing can add up. Fleets of small commercial vans are commonplace across many industries, particularly construction, manufacturing and telecoms where specialist equipment and/or goods need to be transported. Sales teams travelling across the country are often provided with a company car as a more practical and cheaper alternative to fuel and usage expenses. Other organisations use company vehicles as part of an attractive employee incentives package.
Whatever the situation, running just a handful of vehicles or 1000+, significant cost savings can be made with some simple tweaks to your leasing policy. Here are our top tips:
- Your master fleet lease agreement often stipulates billing commences on new vehicles if the vehicle is in service prior to the 15th of a month. An entire months billing can be avoided by having new vehicles delivered immediately after the 15th of any month. The savings can be substantial.
- The larger your vehicle fleet, the greater the chance of vehicles wastage – vehicles not returned by leavers, offices retaining ‘pool’ cars, even vehicles awaiting collection while temporary cars are used.
- The cost of repairing a windscreen is on average less than 15% of the cost of replacing it – simple messaging to employees of repair over replace.
- Fuel represents around 1/3 of total cost ownership of a vehicle - a league table of fuel efficiency, plus feedback and incentives can generate significant cost savings – 5-10% is not uncommon.
- Get a second opinion on your leasing rates – at the very least it will lead to an interesting discussion with your incumbent.
- Sweat your assets – share vehicles across shift patterns. One large (20,000+) estate cut its fleet by almost 10% and saved £8-10million in leasing costs alone.