How do drivers react to being offered reallocated vehicles? Have you offered them incentives? How did this work?

Tristan Campbell In the past, drivers did not like the prospect of being issued a used vehicle. However, with a few tweaks to the policy we overcame this problem.

We standardised the fleet by restricting choice of new vehicles from open to restricted badge; we also offered a financial incentive.

Now, I do not have to force vehicles on anyone and I have a waiting list of drivers who prefer a used vehicle. The drivers get a potentially better specification than what they could have ordered and keep the vehicle for less time, so they get a change more often.

Peter Weston The principal issue that we find with reallocation is the potential benefit-in-kind tax implications for the driver – a car which was considered CO2 and tax efficient three years ago is likely to be at a considerable CO2 disadvantage when compared to the current version of that model.

We also find that some slightly more unusual cars which were selected as ‘lifestyle’ choices by the previous driver are sometimes harder to reallocate – cabriolets, coupés and three-door hatchbacks are prime examples of this.

Gary Black So far we have not experienced any problems with drivers accepting reallocated vehicles.

What do you think fleets/leasing companies can do to improve the situation?

Tristan Campbell I think leasing companies could offer clients vehicles which are being early terminated to other customers who might be happy to take a nearly-new vehicle instead of a new one.

This could be done in return for a small transaction or admin fee instead of the traditionally high early termination charges. I feel that this would be a good option for smaller fleets, which might not have the same potential for reallocating a vehicle within
the company.

Peter Weston It is important to have the flexibility to consider the best interests of the business and of the individual driver and it is certainly helpful to have a culture, which assumes the normality of reallocation.

Gary Black I think that if leasing companies were more flexible we might be able to consider early termination and therefore we would have less need for reallocation.