Author: Jo Tacon, car finance writer, Business Car Manager

Spring – a season full of the promise of new beginnings, with lambs frolicking in the fields, and…

What’s that you say? The fields are completely underwater, and we’ve had to issue the lambs with scuba gear?

Ah. But never mind – this time of year is still closely tied to ideas of renewal, and business car managers may find the spring-cleaning bug can extend as far as the cars and vans they look after.

After all, if you keep on doing what you’ve always done, you’ll just get what you’ve always got – which, in these cash-poor times, isn’t really good enough.

Peter Cooke is a fleet expert (and also happens to be KPMG Professor of Automotive Management at the University of Buckingham as well, don’t you know). Peter has some common-sense and highly non-academic simple spring-cleaning tips for the manager of any SME fleet.

“Check the boots of every company car – how many have golf clubs and other personal paraphernalia in there which are being carried around unnecessarily and burning fuel?”

It’s a fair point, as we’ve all come across drivers who treat their car or van like an extension of their lounge (empty pizza boxes, DVDs, cushions, and/or pets optional). As well as possibly damaging the image of your business in front of clients, it’s a waste of fuel.

Peter’s next recommendations are equally sensible. “Have a tyre check to look at alignment and to ensure correct tyre pressure – when did users actually last check their tyres? At the same time, do a visual check for scratches and other dings and dents – an audit can work wonders.”

Catching minor damage and repairing it before it becomes major damage will pay dividends when it comes to handing vehicles back to leasing companies – they’ll do it otherwise and charge you – or selling your company cars onto the secondhand market.

Finally, he advises, “If you are totally wicked, check average fuel consumption over the last six months, and let it be known you will be watching it – lawnmowers use petrol but few use diesel.”

How about taking more radical action to reduce the cost of running your fleet?

Cut costs with short-term contracts

Smaller companies could take advantage of innovations in short-term contracts to get the best deals for their drivers, says Mark Sherry-Brennan, founder of www.Swap-a-Lease.co.uk. “SME fleet policies are generally more ‘flexible’ than those of corporate fleets, and SMEs can therefore take advantage of short term and ‘tactical’ opportunities to reduce costs and improve employee satisfaction,” he comments.

And have your fleet numbers changed since this time last year? “If SMEs have a surplus lease, they may be able to avoid paying early termination charges by finding a buyer via our site,” Sherry-Brennan adds.

How about whole life costs?

David Davies, business development director at Halliwell Jones BMW, has a more strategic approach to renewing and refreshing fleet policies. “In these continuing times of austerity, I think SMEs could save valuable funds by spending a little time evaluating what they actually spend on the vehicles in more detail.

“From my experience, many business owners tend to continue doing what they have always done because ‘it’s what we’ve always done’. Looking closer at ‘whole life costs’ and selecting low-CO2 vehicles may seem obvious, but how many SME owners actively do this?

“Another regular response I hear is ‘my accountant has always said it’s best to have my vehicles on a personal contract, and for staff to opt out of the company car scheme’ – there’s that ‘always’ word cropping up again! It’s not necessarily true; it’s worth revisiting these issues and crunching the numbers.”

So there we have it – plenty of ideas to help you blow away any cobwebs clinging to your company car policy. Although if this wet weather continues, investing in personal submarines and/or motorboats for your drivers may start to seem like a smart move. After all, Business Boat Manager has a certain ring to it, doesn’t it?

Expert commentary from Fleet Alliance on fleet management

“Now would seem like a very logical time to spring-clean the fleet for many SMEs – particularly given recent changes from the Chancellor’s budget.

“Whilst the underlying theme of the budget was low CO2/green driving – there were a few surprises in there: someone choosing a company car with CO2 emissions between 115-119g/km (generally perceived as a low emission car) will see their company car benefit in kind tax (BIK) liability jump from 14% in 2012/13 to 20% in 2016/17.

“More thought is required to find the right model, also giving consideration to BIK in future years, not just the current rate. It would also be a good time for SMEs to consider using whole life cost calculations to assess the running costs of their fleet – many operators look only at the rental, and discount other important factors like fuel, running costs and national insurance.

“Running a fleet has become a much more complex job in recent years, and that is why it is essential to ensure that all aspects of the fleet are given a shake-down and reviewed.

“So if the fleet needs a spring clean, make sure you pay attention to the Budget changes and all of the costs associated with running a fleet. There are plenty of businesses in the fleet sector who provide company car advice on these matters from a local broker partner to a fleet management business, or indeed one of the larger leasing companies. Take their advice and you should be able to reduce the cost of your fleet.”

Martin Brown managing director of fleet solutions provider, Fleet Alliance

Editor’s note

Thanks to those members of the BCM Linkedin group for their help with this article.