Buying a fleet of cars for your company could be an important way to keep things running smoothly. Many employees take their company car for granted, but it is the thing that allows you to arrive at appointments on time, avoiding angry business partners and other issues. Deciding a fleet of cars is important for your business is one thing, but you also need to know how to manage them. Companies need control of their drivers, for obvious reasons.
Here, we’ll take a look at what you need to know.
Should You Lease Or Buy?
Companies shouldn’t really be buying cars. When you buy a car, you own a depreciating asset. This must then be recorded on your books. You’ll also have things like maintenance to consider, and selling the car when you want to get rid of it. Owning a vehicle could give you flexibility, but most of the time, it’s just not worth it.
More than half of all fleet cars which hit the roads each year are leased. This is often because a large chunk of a car’s depreciation comes in the first year, while all the bills for repairs normally come in the third year. Of course, you’ll need to read any leasing contract extra carefully. There are charges if you don’t look after the car and you need to have comprehensive insurance.
If you can afford to fork out a little extra, you may be able to get extra features and services. Extra services range from health and safety audits, to vehicle tracking technology installed in the vehicle.
Fleet Management Software
Running a fleet is complicated and needs specialist management support. There are numerous packages that you can choose from, but you should probably select a web based service to keep demands on your own computer to a minimum. Automatic reports will help you to keep an eye on vehicle performance, as well as any maintenance.
Extending Your Fuel Budget
Ultimately, how much of a success this is depends on your drivers. Get them to think about routes, alternative transport and how they drive. They need to take into account speed, as well as their braking habits. This could make a huge difference to your overall spend. Remember, how well maintained the cars are will also make a difference. Using commercial products from PEAKHD could make a difference to the lifespan and cost of the vehicle.
Buying Your Fleet Vehicles
When buying your fleet, find out whether there is a discount for volume – there normally will be and it can reduce running costs further. Make sure you do plenty of research so that you can select a reliable fleet vehicle too – popular choices include the VW Golf, Kona Electric, and Tesla Model S.
Buying a fleet of cars for your business isn’t something to be taken lightly – use the advice here and you should find the process much more manageable and affordable. Do you have tips of your own? Leave them below.