Drivers are the experts when it comes to handling your company vehicle and they tend to prefer a wide choice when it comes to decision-making about the next company car. However, it is a known fact that choice tends to bring costs. But by simply putting sensible limits in place, a reasonable amount of savings can be made for your vehicle leasing or fleet management operations.
Deciding to adopt the “one size fits all” car and one management model thinking into your fleet operations can be a potential answer to your cost efficiency dilemmas. It can be your biggest saving decision too. This is hardly likely to be popular for drivers but their concerns can be met by being able to provide a better car the meets their specific requirements and needs. This move however, is not applicable to certain industries where retention is an issue. But considering this if you have a flexible contract and terms, this move is worth thinking and considering. It also makes vehicle reallocation simple for fleet managers.
Balanced CO₂ and MPG Mapping
Do you know that you can save up to €36,000 a year in fuel with cars that has 160g/km CO₂ figures and an MPG below 45mpg? This can be easily achieved with around two-thirds of the cars in the market that meets these standards. Some cars especially sports models and 4×4 does not meet these specific qualities but most companies excludes these car choices in their fleet policy. Keep in mind that there are strong environmental arguments for adopting a basic capping level for this move.
Rigorous CO₂ and MPG Mapping
A more rigorous approach in capping CO₂ and MPG would be to move at 140g/km and 55mpg operating vehicles. This benefits both the company and the drivers as vehicles with these specifications reduces NI, BIK and fuel costs and will also help your company adapt to future legislations about stricter car emissions demands. One-third of the vehicles in the market meet this standard so choosing vehicles for this move should be done carefully. This also means looking beyond petrol and diesel running cars but hybrid models, electric vehicles and plug-in hybrids which are all starting to become available to most mainstream car manufacturers as well. A strong environmental debate exists about this approach where you may want to consider for this approach. The latest car models with lower CO₂ figures specifically those with drivetrain technology will make this approach more practical.
Considering these options for your vehicle choice when your company decides to join the vehicle funding and fleet management bandwagon is worth the time and investment you will shed from your company. Know the specific vehicle needs for your company so you can maximise the potential of your vehicles.
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