SIZE REALLY DOES MATTER
While fuel duty has remained frozen, pump prices have continued to rise throughout 2016, with further rises set for this year. As a result, business owners have once again begun to feel the pinch of these increases and have started to implement a number of changes within their business to counter these costs.
Some have decided to make the tough decisions of increasing their costs or reducing the services they offer in order to cover these rises.
However, there may be another way. Managing Director of supermarket fuel card provider fuelGenie, Robert Pieczka, explains:
“The first place for businesses to start is to consider if they are using the right vehicle for the task it performs. Thinking about the exact role a vehicle will perform before making a purchase could help a company save money in the long run. Normally business owners will purchase a vehicle based on price or previous experience of owning a similar model, but a simple change in buying habit could help save money long term.
Moreover, advances in vehicle technology now mean that smaller, more efficient vehicles can perform many of the same tasks as a larger one. Business owners should compare all available vehicles across the range to see which best suits their needs. A smaller vehicle will not only be more efficient to run in terms of fuel consumption, but also should be cheaper to purchase in the first instant, as well as own in the long run.”
Business owners may also wish to consider the whole life cost of their vehicles. It’s something that is often overlooked when purchases are made.
While a vehicle may appear more affordable on the retailers’ forecourt it may not be the most cost effective option over time. Companies need to look at all the key components of a vehicle’s whole life including its purchase or rental cost, residual value, maintenance costs, fuel costs, fuel consumption and taxation.
It’s a lot to calculate. But a bit of research prior to buying a vehicle could help reduce a business’ fleet spend considerable over the years.