10 ways to reduce your fleets spending this year

16/01/2018

Finance

We know fleet funding is an issue for many fleet managers this year. So, we’ve looked at a few ways for you to keep a control on costs.

1) Encourage fuel-efficient driving

Making sure your employees drive more efficiently can be a great way to reduce your overall fuel costs. Some things you can encourage are:

-Better use of gears

-Keeping a check on tyre pressures

-Cut down on air-con use

-Remove unnecessary luggage

-Switch off the engine when stuck in a jam

2) Tighten your choice list based on CO2 and MPG

By rewriting your choice list and by only choosing vehicles with low g/km CO2 levels and higher MPG figures you can make savings in not only fuel but in National Insurance and Benefit in Kind taxation.

3) Use the right fuel card at the right fuel station

A fuelGenie fuel card gives the added bonus of letting your drivers take advantage of lower diesel or petrol costs at supermarket pumps like Sainsbury’s, Morrisons and Tesco.

4) Get clear on out of contract charges

Carefully check terms and conditions as what’s considered as ‘Fair Wear and Tear’ varies between leasing companies.

5) Reconsider your funding methods

Changes in your business operations and external factors can mean that decisions you made a few years ago could see your fleet strategy become out of date. Many reputable contract hire providers are able to negotiate manufacturer terms on your behalf and should have access to various funders to help you get superb value. And if your current fleet is owned outright, it may be possible to sell some of your fleet to a contract hire company and lease them back.

6) Consider Accident Management

Downtime can be costly, so consider taking on an Accident Management company. These specialised companies have well-developed contacts covering everything from vehicle recovery and replacement to personal injury claims. See our post on how to minimise downtime here.

7) Optimise daily rental usage

Watch out for employees looking to hire vehicles with powerful engines and an unnecessarily high spec. A policy-driven decision is likely to save more money than a driver based one.

8) Make sure you have the right fleet partner

It’s all about delivering cost savings without having an impact on your customer service. Don’t just look to the big companies. Take into account how your business looks to them in context of their own fleet size. They may do a fantastic job with businesses with many cars, but how will they treat a business with a noticeably smaller fleet. So consider the smaller fleet companies too as they may be a better fit for your businesses needs.

9) Get your drivers to slow down

Employees may want to get there quicker, but it doesn’t always pay. Speeding excessively is not only risky, but it can use more fuel.

10) Invest in telematics

Not only can telematics help with safety and monitoring – they can also help encourage people to be aware of bad habits. It’s these bad habits that might be costing your business money.

Have you got any top cost-saving tips? Share them with us on our LinkedIn and Twitter pages.

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