Category: Fleet News

Making a decision on leasing versus buying vehicles is one of the most important parts of a fleet manager’s job. But it’s never a simple choice, and there’s no easy answer about which is best.

It’s not only about the costs. Every firm will have its own needs and limitations that must be taken into account. For example, how much mileage do you expect to do? How flexible will you need to be?

Understanding what the specific demands of your firm will be is crucial in making the right decision. Get it wrong and you could find yourself locked into an expensive contract, or struggling to offload unsuitable vehicles.

The factors affecting your decisions

Both leasing and purchasing vehicles have their own pros and cons. It’s therefore important to have a clear picture of your company’s situation and needs before making a decision. Here are some of the key factors you should be looking at.

1.  Cost

Your firm’s financial position may dictate some of your decision-making. Buying a vehicle outright will naturally incur higher upfront costs. But this is not the only expense you have to think about.

You also need to take into account the total cost of ownership (TCO), such as maintenance bills and monthly payments. In the long term, this can work out more expensive for a leasing agreement than a purchase.

Some of the financial pros of buying a vehicle include:

• Cheaper long-term costs – If you plan on keeping a vehicle for many years, the TCO is likely to work out cheaper than for leasing.
• Company asset – Once paid off, the vehicle will appear as an asset on your balance sheet, although outstanding finance will show as a liability.
• Insurance – Leasing agreements may require a higher level of coverage, which can push the price of insurance up.

Leasing a car, however, can also have its financial advantages. Some of the cost benefits of leasing over buying vehicles include:

• Fewer upfront costs – If cash flow is an issue, the lower initial payments and fixed monthly fees can make leasing an attractive short-term option.
• Predictable expenses – Having a single fixed monthly cost makes financial planning easier. With a full service lease, issues such as maintenance, repairs and insurance are also all included.
• Depreciation – You won’t have to worry about having to sell on a vehicle that is losing value.

2.  Your usage needs

Another major factor in your decision will be how you expect to use your vehicles. If you’re buying a car or van, you will obviously have complete freedom to do whatever you wish with it.

This means not worrying about mileage restrictions or wear and tear limits that often come with leased vehicles. Mileage limits in particular can require close attention when leasing vehicles.

Choosing a deal with lower restrictions will be cheaper, but will require careful management to ensure you don’t exceed your allowance, which can lead to additional fees. You can handle this using mileage tracking tools to take control, but it’s always something to be aware of.

Of course, this is not an issue when buying, other than considering how high mileage may affect the later resale value.

Buying vehicles outright also means you’re not tied into a contract. Therefore, if your needs change, you can react quickly to replace them, or make any necessary modifications. Again, this is not something that’s typically available with leased vehicles.

On the other hand, if you expect to replace your vehicles on a regular basis anyway, a lease can offer many benefits. If you’re upgrading to the newest vehicle every three to five years, leasing gives you many options.

For example, this can ensure you’re always opting for the most fuel-efficient equipment. This not only cuts down on your fuel bills, but also improves your firm’s carbon footprint.

3.  Maintenance

Keeping your vehicles in good working order is essential whether you’re buying or leasing. However, there are a few different factors to consider in for leasing versus buying fleet vehicles.

If you’re leasing, the chances are you’ll be working with the most up-to-date, low-mileage vehicles. This means, in theory, they’ll need to spend less time in the garage.

However, depending on the terms of your contract, your leasing provider may insist on a thorough maintenance regime in order to keep them this way.

If you are leasing, you’ll still be responsible for regular issues such as servicing and oil changes. You may also consider a maintenance agreement that will cover areas like parts, especially if you’re doing higher mileage.

Be aware these can differ however. For example, some agreements will cover tyres while others won’t. Each provider will also have their own policies for what counts as reasonable usage.

Maintenance costs also need to be factored in when you’re buying. This may be especially true if you’re planning on keeping vehicles for a long period or running high mileage. While you won’t have to worry about keeping within agreed wear and tear limits, costs can quickly climb as vehicles age.

4.  Management

Finally, you’ll also have to think about how to keep control of your fleet. There are a wide range of things to think about in this area, and leasing can help take some of them off your hands.

For large fleets in particular, this can be a vital time-saver. You do, however, have to pay close attention to the terms of your lease.

If you are looking for a leasing provider, there are several things to keep in mind. You’ll need a company that’s fully authorised and regulated by the Financial Conduct Authority, for example. You also need to be familiar with the various types of lease that are available.

Having the right tools and technologies can make the management of your fleet easy, whether you’re leasing or buying. From telematics tools to service checks, find out how Fuel Card Services can help you stay in control.

If your firm runs commercial vehicles of any kind, you need a fleet management solution. Whether you have hundreds of vans or just a couple of company cars, a clear plan for keeping these running smoothly is a must.

But what is fleet management? And what tools can you use to make this task as easy as possible? Read on to find out.

The basics of fleet management

Fleet management is an approach to looking after your company’s vehicles across every stage of their lifecycle. It starts with purchasing or leasing and covers maintenance, driver tracking and fuel management. At the end of a car or van’s life, it also ensures there’s a clear replacement and disposal plan.

This isn’t just for firms with large numbers of vehicles. It also applies even if you’re only running a small number of cars or vans, and if you’re using a ‘grey fleet’, where employees use their personal vehicles for work purposes.

The goal of this is to improve efficiency, cut fuel costs, keep your drivers safe and maintain compliance with the rules. This covers everything from monitoring driver behaviour and tracking routes to having up-to-date MOTs and insurance and meeting working time regulations.

Effective fleet management ensures there’s a single hub that covers all aspects of your vehicles’ operations. This is also where the fleet manager comes in.

The role of the fleet manager

The job of the fleet manager is to oversee the day-to-day operation of the firm’s cars, vans or trucks. They have a wide range of responsibilities and so need a good mix of skills, from accountancy to strong communications and the ability to multitask.

In general, a fleet manager’s roles will include the following:

• Controlling costs. Ensuring operating costs are kept as low as possible is a primary task of the fleet manager. This can include getting a good deal on initial purchases or rentals, as well as keeping ongoing costs down. This can be done by improving fuel efficiency or managing the use of services like fuel cards.
• Vehicle maintenance. Keeping your fleet on the road is vital to the success of any business. This means ensuring cars and vans are regularly serviced and checked for any faults.
  
  The latest smart technology can alert you to any potential issues before they become a problem, allowing you to plan your schedule and reduce the risk of a breakdown.

• Ensuring driver safety. As well as ensuring your fleet is mechanically sound, a good fleet manager should also be keeping an eye on driver behaviour. Tools like telematics can keep a full log of their actions. It can show you if they were speeding, for instance, or if any harsh inputs have been made on the steering or brakes. This lets you step in with training or advice where necessary.

• Tracking vehicles. It’s essential that you know where your vehicles are at all times. GPS tracking tools give you a complete picture of your current situation and let you make changes. For instance, it can show you if drivers are taking inefficient routes between jobs and therefore help better plan your operations. What’s more, it can quickly alert you to any unauthorised vehicle use or track down a stolen car.

• Ensuring compliance. It’s also up to the fleet management team to ensure their vehicles are road legal and that drivers are meeting their requirements. However, this doesn’t just include keeping MOTs and insurance valid. You should also be tracking any mileage claims for expenses and tax purposes and ensuring drivers aren’t breaching working time rules. This also covers ensuring your drivers are fully licensed for the vehicles they operate. And, you’re keeping a record of any issues such as penalty points.

How does fleet management work?

This can seem like a lot of plates to keep spinning, especially if you’re managing a large fleet. However, there are a range of tools and technologies that can make life easier.

Telematics systems are an important part of this, and are used by around 86% of fleets. What’s more, mileage tracking tools, servicing and maintenance schedulers and vehicle checking apps all have their role to play.

These all fall under the banner of fleet management software – something no professional can do without.

Understanding fleet management software

Fleet management software solutions are vital for cutting through the data and giving you a clear picture of what’s going on in your business.

Having all the relevant information at your fingertips means you can make better decisions about all aspects of your operations. This applies both in the day-to-day management of your fleet and for longer-term strategy, such as which fuel card to go for or how often to replace vehicles.

Fleet management software typically covers several key areas, including:

• Driver management – Records, expenses, driving behaviour etc.
• Vehicle management – Inventory, maintenance and repair, licensing, disposal etc.
• Operations management – GPS tracking, route planning, fuel usage reports etc.
• Regulation management – Expenses, tax, working hours, emissions, etc.

The benefits of effective fleet management

It should be clear how good fleet management can improve every aspect of your operations. But what can this translate to in real terms? Here are some of the proven benefits of these tools.

• Reduced fuel costs. Smart telematic solutions can reduce the MPG of your fleet by as much as 20%, while a fuel card can offer significant savings every time you fill up.
• Improved safety. Companies that monitor driver behaviour can see a 42% reduction in the number of safety incidents, according to figures from Teletrac Navman.
• Less downtime. A predictive maintenance schedule reduces the time your vehicles spend in the garage or broken down at the roadside. It can cost firms up to £800 a day for a van to be off the road, so this also saves you money.
• Better insight. Fleet management tools let you know exactly what your drivers are doing whenever they’re on the road. This means you can plan your vehicle usage more carefully and ensure you’re meeting your duty of care to your drivers.

To learn more about fleet management, get in touch with our experts to see what tools and technologies can benefit your business.

The impact of the coronavirus pandemic has been far-reaching this year. Businesses across the UK have endured forced closures, limited trading opportunities and lots of uncertainty. As a result, fleet managers have faced a lot of stress during COVID-19.

With the situation unlikely to be resolved anytime soon, there’s a need to consider how businesses can successfully operate within the ‘new normal’ of COVID-19. Here we offer some simple advice on vehicle safety and how to manage your fleet against this challenging  backdrop.

Minimising the impact for your business

Effective fleet management during COVID-19 needs to take into account the disruption the pandemic has caused. This means fleets need to be more flexible in the way they operate.

Planning is crucial to success. With more people making use of online deliveries, that means more traffic and longer queues or delays when filling up vehicles. It can therefore pay dividends to plan journeys in advance to avoid congested areas. Our Pump Locator service, available through our free Drivers Club mobile app, can also help managers plan ahead to ensure they are getting the best deals to save money on fuel.

Meanwhile, clear communication is also essential between managers and drivers. Fleet managers need to be able to inform drivers quickly and easily. This could be about changes in delivery schedules or procedures for visiting clients. It’s also important to know who has been using each vehicle and when.

Vehicle maintenance during COVID-19

Managing your fleet in an efficient and cost-effective way is essential at the best of times, but even more so when faced with the uncertainty of COVID-19. Essentials to remember include:

• Step up cleaning schedules: Vehicles should be deep cleaned after every use. This is especially important if they are to be used by more than one driver.
• Inspecting tyres: Tyre laws haven’t changed in recent months. Vehicles must still comply with all measures of roadworthiness. This includes maintaining minimum tread depth of 1.6 mm for all tyres.
• Carry out daily checks: Vehicles should undergo a thorough inspection every time they are used. This should include things like checking lights, brakes, mirrors and oil levels. A full vehicle checklist can be found at Gov.uk.

The use of tools like our MyDriveSafe app can make completing daily vehicle checks easy. It gives clear visibility for managers and drivers alike that the right checks are being carried out.

Government advice on MOTs

Significant support for businesses has been offered throughout the pandemic so far. One area where this has been apparent is MOTs.

For smaller vehicles, a six-month MOT deferral was put in place for vehicles with MOTs expiring between 30th March and 31st July 2020. For HGVs, trailers and other large commercial vehicles, the government has extended MOTs by 12 months.

Keeping drivers safe during COVID-19

It’s not just vehicles that businesses should be looking after in these difficult times, but drivers as well. All companies have a duty of care to their staff and, against the backdrop of a global pandemic, this is perhaps now more important than ever.

A key element of driver safety is to remind individuals about the basics of social distancing, regularly washing hands and disinfecting their vehicles to reduce the risk of infection. Here are some key pointers that can help to boost hygiene for staff:

• Disinfect high-touch areas: Focus on door handles, steering wheels, gear sticks and other high-touch areas of your vehicle.
• Wash/disinfect hands: Keep antibacterial wipes or gel in your vehicle to allow you to disinfect your hands quickly and easily. Remember to wash your hands with soap and water for at least 20 seconds, when possible.
• Keep apart from others: Maintain a two-metre distance from others when possible.
• Reduce vehicle occupancy: Limit the number of people within a vehicle. Close proximity to others will increase the chances of passing on infection.
• Wear a mask/disposable gloves: When leaving your vehicle, wear a mask covering your nose and mouth and cover your hands.
• Promote contactless payments: You can reduce their risk of passing on or contracting coronavirus by using contactless payments when making payments. Access to a fuel card account can also ensure you’re not handing over cash when filling up vehicles.

Finally, fleet managers must remember to educate drivers on any changing guidelines. It’s essential that people know what is best-policy behaviour in order to protect themselves and others.

How to control fuel costs

Uncertainty for businesses due to the impact of COVID-19 remains extremely high. As a result, it’s important to keep a close eye on expenses. One way to reduce your monthly costs is to take advantage of discount fuel.

Signing up for a fuel card account can offer significant savings every time your drivers fill up. Use our handy guide to compare fuel cards to determine the product that’s right for you. At Fuel Card Services, we provide a wide range of fuel cards – including all of the biggest brands, Shell, Esso, BP, etc. We provide flexibility and cost reductions for our customers.

You can save up to 10p per litre on the cost of fuel with us. Meanwhile, complementary services like vehicle and asset tracking through our Tele-Gence service and accurate reporting of your mileage expenses through MileageCount can further streamline your fleet.

The hay fever season is upon us once more and with grass pollen levels rising, many sufferers will be reaching for the antihistamines to calm their symptoms.

However, one motoring organisation has warned anyone who also needs to drive to check their medication before taking it in case it causes drowsiness.

Common medicines may impair driving

GEM Motoring Assist said some common hay fever remedies can have a sedative effect, potentially making drivers groggy and unable to react to hazards in time.

Chief executive Neil Worth added: “It’s important to check with your GP or pharmacist, and to read those warnings contained on the labels of the medicines you plan to take.”

He also pointed out that the same laws cover over-the-counter remedies as apply to illicit drugs when it comes to impacting driving, meaning those caught ‘under the influence’ of antihistamines could face heavy penalties.

GEM has published a new leaflet called Medicine, Drugs and Driving to help anyone unsure about where they stand on taking particular remedies, which is available now.

Meanwhile, IAM RoadSmart also suggests that people who usually suffer from hay fever might want to take extra precautions before getting behind the wheel, including regularly changing the pollen filter of their vehicle and wiping down dashboards and other fixtures.

According to the NHS, 20 per cent of us suffer from hay fever, with the UK and Sweden having the world’s highest number of sufferers.

Tom Cosway, brand representative at Fuel Card Services, comments: “Hay fever is a very common ailment, but it can be really serious for drivers. We recommend that everyone should heed this advice – and we hope the ‘season of sneezing’ proves short for those of you currently suffering.”