The 8 levers of
fleet optimisation

While there are many factors that...
author: LeasePlan UK
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While there are many factors that make a successful business, one of the most important is to be in control of your spending. And yet many companies don’t seem to see the full picture when it comes to their fleet.

After all, the cost isn’t just about the vehicles themselves, there’s the administration that surrounds them, particularly if you operate in several countries. Improving how your vehicles are financed and managed can have a big effect on your bottom line.

As you might expect, we’re in favour of leasing, not least because it makes it much easier to see your costs – and, potentially, reduce them. But whether you choose to lease or buy, we want to help you optimise your fleet, so we’ve highlighted the eight levers that can influence its costs.

Depreciation

It’s estimated that the average car loses 60 per cent of its value in its first three years, based on the car being in good condition and covering 10,000 miles per year [1>. So if you buy a £30,000 car now, you’ll have lost £18,000 in three years’ time.

Insurance

If your employees are using their car for business, how are they insured? Have they got the right cover? Whose unenviable driving history is pushing up your premium?

Fuel

How’re your drivers buying their fuel? And are your employees driving the most efficient cars?

VAT

Most fleets can reclaim up to 50% the VAT on a car lease. What if the company buys the car, though? [2>.

Service, maintenance and repair

Who coordinates the servicing, maintenance and repair of your company’s vehicles? What if there’s a fault that causes an accident – are you liable?

Employee benefits

How do you make a company car scheme cost-neutral? You need to look at the cost to the business, and company car tax versus other costs for employees.

Corporation tax

Businesses can claim capital allowances on cars bought and used for business. How does this compare to the cost of leasing?

Mileage

Company car mileage can have a huge impact on expenditure – especially your fuel costs and, if buying, the residual value of your vehicles.

Find out more

This is just a quick overview of the key levers, but if you’d like more detail, we have a free eBook that can help.

Download our eBook 8 Levers of Fleet Optimisation workbook 2018 today.

If you’d prefer to talk with an expert, just get in touch with our team for information and guidance on 01753 802448 or email newbusiness@leaseplan.co.uk


[1> http://www.theaa.com/car-buying/depreciation

[2> https://www.gov.uk/reclaim-vat/cars