Effective and affordable company cars are integral to many businesses as an essential mode of transport for employees. Compared to most public transport, they are the most cost effective, reliable and flexible option. But there’s no doubt the endless options cause companies a headache. Here are three top tips for bagging the best fleet for your business.
With so many financial incentives for companies that go green with their vehicle choices, it is no wonder that businesses are increasingly opting for eco-friendly makes and models.
Currently, the biggest rewards are offered to those with ultra-low emission vehicles (ULEVs).
The current carbon dioxide-based company car tax system, according to the Gov.uk website, is an “emissions-based system calculated by applying a percentage figure to the list price of the car. The fuel type of the car and its CO2 emissions determine the appropriate percentage.” Ultra-low emission vehicles are currently split into two bands for this company car tax: 0-50g/km and 51-75g/km. These are charged at a much lower rate than vehicles in higher bands which emit higher levels of CO2.
In addition to this, the government plug-in grant offers businesses a discount on the price of brand new low emission cars up to a maximum of £3,500. This includes cars, vans, motorcycles, mopeds and taxis, so not matter what your business, there is bound to be an option to suit your needs.
There is also a Workplace Charging Scheme, giving businesses vouchers towards the cost of purchasing and installing electrical charge points for vehicles at their premises. This is currently up to a maximum of £500.
Opt for a Lease Plan
Buying a fleet of cars outright can cause a huge dent in your accounts from day one. Not to mention that as soon as you drive them off the forecourt they start to depreciate. Your investment will see little return, plus you must factor in maintenance costs and the hassle of trying to sell once you choose to upgrade your fleet.
If you choose a lease plan, your costs will be spread evenly over the lifetime of the lease. Generally, most lease companies offer three to four-year plans, meaning much more affordable monthly costs compared to forking out thousands on an up-front purchase. There are many companies offering effective car and van leasing options, including Robins & Day. When researching for your business lease plan, make sure you fully understand any fixed mileage your employees need to adhere to, maintenance costs and what the damage fines are, so you are fully prepared for any eventuality.
Invest in Premium Protection
Arguably the most important part of purchasing your fleet is to ensure you have good quality insurance. This shouldn’t just cover the cars, it should also cover your staff, products and any third parties. Many lease companies offer to insure vehicles themselves as they own them, but some do not, so it is always worth checking this before signing on the dotted line. These policies are usually much more expensive than your average personal insurance as drivers will be covering a lot more miles on the road and therefore have a higher accident risk. It is also worth considering the make and model of the car here, as eco-friendly cars with small engines usually benefit from lower premiums. To get the best price, shop around.
Finally, take a step back and think about what will suit your business. There is no quick fix here as every company is different. Consider what size vehicles your staff will need, will they be transporting a large quantity of goods? Will they be regularly driving on the motorway and need a fuel friendly model? Is the price of your fleet the most important aspect? Whatever your criteria – there are thousands of options – so you are sure to find a fantastic fleet.