Operate the minimum number of company cars
Cars are expensive, so keep the numbers down.
Provide employees with a fair quality car
According to status, employees are allocated a ‘grade’ of car. Be careful that the grading doesn’t drift upwards as car manufacturers improve their specification year by year.
Obtain the best trade-in values
Many fleet owners dispose of their cars through auctions but it may be possible for a higher price to be obtained on a private sale basis.
Look at the second-hand market for your vehicle requirements
Low mileage used cars are often available at a very much lower price.
Carry out in-house servicing and repairs
Your own maintenance department may well be qualified to carry out this work.
Control the amount of private mileage
Check the proportion of private to business mileage and reduce excess use for private purposes. There is perhaps no need to be unreasonable but some degree of restraint is needed in order to be fair to all car users and to protect the company’s interests.
Contribution by employees for private use
A nominal weekly contribution from each nominated driver can add up to a worthwhile annual total. Such a contribution could be in exchange for the privilege of using the car at weekends or for allowing family use.
Consider vehicle leasing
This is often the most cost-effective method of vehicle financing.
Issue vehicle operators with credit cards
It gives your company free credit for fuel purchases and this saves bank interest. It also makes accounting easier, but beware of misuse.
Record vehicle mileage and vehicle costs
Be careful that you are not keeping a vehicle on the road that really needs to be replaced. Companies devise general policies that are not necessarily appropriate to all car users. For example a policy by which cars are changed every three years may be entirely unsuitable to a sales representative travelling long distances in a large territory.
Plan journeys
Ensure the optimum use of every mile travelled by every vehicle in the fleet by insisting on the careful planning of all journeys.
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