Good fleet management definitely makes a difference to your business, and if you get it wrong, it could be costly and even hamper your business growth.
There are many aspects to running a fleet of company vehicles, and as someone like Joye Law Firm will confirm, educating drivers on safer driving, can also make a difference.
Here is a look at some of the aspects you need to look at if you want to make the most out of your fleet management strategy.
Your vehicle’s CO2 emissions matter in more ways than one.
For a number of years now, the writing down allowance for each car in your fleet, has been linked to your vehicle’s CO2 emissions, which means that the greener your car is the more lucrative rate you can attain.
The current suggested ceiling for maximum financial efficiency is 130g/km. What this means to your fleet is any cars you have with emissions that are between 96g/km and 130g/km will attract an allowance rate of 18%, while anything above that threshold will only equate to an 8% allowance, which is a substantial difference that you can’t really afford to ignore.
Electric cars can be good
The use of electric cars is growing annually and there are some clear advantages to beefing up your company’s green credentials by going electric.
Electric cars and any car which boasts emissions that are below 95g/km, will qualify for a 100% statutory depreciation deduction for the first year. If you decide to lease a vehicle like this rather than buy one, you should be able to deduct 100% of the car’s cost against taxable profits.
This compares favorably to cars with emissions above 130g/km which attract an 85% allowance.
Keep a close control of mileage
What you need to take on board as part of your overall fleet management policy, is that mileage is not a fixed cost, but it is actually a controllable cost which you can influence and drive through efficiency savings.
You can count on fuel costs contributing to somewhere in the region of 30% of your entire vehicle expenditure throughout the lifespan of each company car, so you can see that this an area where you can target big savings by implementing some tight controls on fuel budgets.
Use data to analyze driving habits and efficiency levels, so that you can encourage better use of fuel resources and drive down costs.
Choosing the right spec
You can now buy or lease vehicles which meet almost every conceivable application, so you need to take the time and do the research to ensure that you choose the right spec for your needs.
You should be able to find a vehicle which is ergonomically correct and the right size and weight to maximize productivity and just as significantly, improving fuel efficiency.
The other major improvements are with the range of in-car technology and safety systems, so you should be able to improve your chances of keeping your drivers safe and give them the tools to drive efficiently as well as safely.
Better fleet management can lead to better profitability, so take the time to get it right.
Nathan Bull has experience managing fleet vehicles for his own company. He enjoys sharing his knowledge with other business owners and writes for business blogs on occasion.