In response to the questions below, please select an answer which best describes your current fleet situation.
What factors do you consider when selecting the vehicles for your staff to use?
a) I take a whole life approach, looking at all the costs associated with running my fleet, such as rental costs, disallowable VAT, national insurance, corporation tax, vehicle insurance and fuel. I then choose the most cost efficient vehicles based on this analysis
b) I look at the monthly rental cost of vehicles and choose the lowest ones
c) We encourage drivers to select the vehicle of their choice and don’t worry too much about the cost of individual vehicles; a company car is a perk after all
What steps do you take to monitor the consumption of fuel by your staff?
a) I monitor fuel consumption by driver, by tackling over use, incentivising low fuel users and managing a robust driver training programme
b) We have a fuel card scheme in place
c) I trust my staff to use fuel responsibly
Do you have a clear maintenance policy in place for the vehicles on your fleet?
a) Yes, the company car drivers have a list of suppliers which they must use to carry out any works
b) I have a robust maintenance schedule in place to ensure that the vehicles are regularly checked
c) I allow my staff to get their company cars checked and repaired at their convenience and at a garage of their choice
How often do you run driver training courses?
a) At least once a year
b) Every 24 – 36 months
c) I can’t remember the last time we ran a training course
Now you have completed the quiz, see below to find out what kind of fleet saver you are and where costs could be saved.
If you answered mostly As, then you are a High Interest fleet saver. You take a proactive whole life cost approach to running your fleet and are doing everything possible to reduce costs and are seeing great results. But remember not to get complacent, managing costs is an ongoing process and must be reviewed regularly. Keep up the good work.
If you answered mostly Bs, then you are a Regular Saver. As a fleet manager you have already begun to take step to reduce costs, but there is still a lot more which could be done..
The implementation of a fuel card scheme is a great start, however there are more options to consider. Reviewing the fuel types of the vehicles on the fleet can also generate considerable savings. For example, while petrol cars offer the best driving performance, diesel fuelled vehicles offer greater fuel economy. It is has been estimated that diesel model cars make up over 40 per cent of all the UK’s fleet vehicles
You already have the basics in place with regards to maintenance, but a driver education programme highlighting the need to make repairs early can produce savings. Getting repairs fixed quickly will also guard you against end of lease recharges on rented vehicles. In addition to this, if you currently allow your drivers to pick a repairer then you might not be benefiting from the best possible price available. By choosing preferred suppliers you may be able to negotiate a better rate on work, especially if you agree to use them as a single supplier for the maintenance of your entire fleet.
If you answered mostly Cs, then you are a Low Rate Saver. You understand that there are ways to save money, but you don’t really know where to start. It is time to go back to basics.
Start by looking at the vehicle choice which you provide your company car drivers with. While it is essential that you provide a vehicle which is fit for purpose, it is worth analysing whether a smaller vehicle, which is more efficient and uses less fuel, would be up to the job. Provide staff with a choice of vehicles which are still considered a perk, but will meet your business objectives.. In addition to this, you can expect to see accident claims reduce by approximately 50 per cent. This reduces the related maintenance and replacement vehicle costs.
Training drivers can be a quick and simple way of seeing immediate cost saving results. Research suggests that the average driver reduces their fuel consumption by over 10 per cent after receiving training.
Reducing the cost of running a fleet may seem like a daunting prospect, however Hitachi Capital Vehicle Solutions estimates that large fleets could be achieving savings of up to £3.6million over the course of their contract lives. This is an area which can’t afford to be overlooked by fleet managers. With budgets tightening, particularly in the public sector, a few simple steps and changes in policies can have a dramatic impact on the whole life cost of running your fleet.
To calculate your fleet running costs, click on the link below.