Managing a business vehicle fleet is a complex task with many variables, so here are a few ways you can fine tune the commercials of your fleet to put some extra drive into your profit margins.
Review your funding model
New financial products are created all the time so the funding methods you set up three or four years ago could well be worth a review. One of the most popular ways to fund a fleet in the UK is by using Contract Hire. The best contract hire companies will have established strong negotiating positions with manufacturers and have access to a range of different funders which can provide good value for money. It may even be possible to sell some of your fleet vehicles to a contract hire firm and then lease them back.
A lot of businesses fall into the trap of holding onto and operating their vehicles far past their optimum economic life. This means they are stuck with excessive maintenance costs and unnecessary fuel costs. Newer vehicles will provide more fuel efficiency and lower maintenance costs.
Change bad habits
Travelling for work is tiring and stressful. It can lead to bad habits like speeding, idling and aggressive driving, which all cost your company money.
So, train your employees to drive more efficiently using some of these techniques: reducing speed (which also reduces the drivers’ stress levels), coasting instead of accelerating up to traffic jams, keeping tyres at the right pressure, never using air conditioning or provide vehicles without air con, and remove unnecessary weight from the car.
Consider ongoing online training for your drivers by providing IOSH accredited courses.
Also consider providing your drivers with Fuel Card Services which will allow you to use online reporting tools to track and monitor fuel costs. Some fuel cards even provide discounts at the pump!
Incentivise your drivers
Encourage your drivers to drive more efficiently by keeping track of everyone’s driving performance and giving the best drivers small annual prizes.
Another way to incentivise drivers to drive more efficiently is to offer them to option to buy the vehicle at the end of its economic usefulness to the company. Research shows this encourages drivers to be more vigilant with maintenance and could also reduce crashes!