The Ultimate Guide To Fleet Cars
Cars are the most common type of vehicle used by commercial fleets in the UK, and these can be owned either by a business, or owned by an employee and registered for commercial use.
Cars are the most common type of vehicle used by commercial fleets in the UK, and these can be owned either by a business, or owned by an employee and registered for commercial use.
Simon Pavey
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Naturally, there are many considerations to be made around bringing the right fleet cars on board and creating the right infrastructure to facilitate a productive and hassle-free experience for your drivers that doesn’t break the brand.
Short-term considerations of the business’s bottom line, though, are not the only considerations when picking your fleet cars.
In fact, the legislative and ethical considerations surrounding the UK’s commitment to achieving net zero carbon emissions by 2050 should also play a role in how you design your commercial fleet.
For example, the UK is set to introduce a Zero Emission Vehicle mandate for car manufacturers in 2024 which will impact the types of cars that are on the market in the coming years. So, how do you go about bringing the right fleet cars on board?
If you’re looking to adopt an ethical fleet, learn about our sustainable transport with telematics.
Carry out some research following our guide below to conduct some research and help you pick the perfect fleet cars and other fleet vehicles for your fleet needs.
Fleet cars are vehicles owned or leased by a business, government agency, or other organisation, rather than an individual, and are used for business purposes, such as transporting employees or goods.
There are a number of factors to consider when procuring fleet cars for your company. These factors will influence what make and model you choose to buy or lease and which additional features are useful.
To determine the optimal time to replace fleet vehicles, businesses should analyse factors like age, maintenance costs, fuel efficiency, and overall cost of ownership rather than relying solely on age or mileage and consider a 5-7-year replacement timeline as a starting point.
Typically, businesses that have more than two vehicles will be able to get fleet insurance. However, there are some companies out there that would require your business to have at least five cars to have fleet insurance.
Understanding the types of journeys and routes the fleet car will need to take is the vital first step in picking the right vehicle. You’ll want your fleet car to be fit for purpose, so think about exactly what sort of trips it’s going to make.
Long motorway trips, inner-city driving, country roads, and off-roading (perhaps for rural deliveries) may all require different vehicle capabilities, and this should be at the forefront of your mind when looking at car specifications and features.
Powering your fleets is also crucial, and access to filling stations and electric charging stations can help determine whether you ought to invest in diesel, petrol, electric or hybrid vehicles – and whether you should look for features like stop-start technology to help increase efficiency and save costs.
Having an unsuitable car for the fleet’s needs can result in increased costs for the company through excessive fuel consumption or maintenance costs. Cars ill-suited to motorway driving might, for example, consume excessive amounts of fuel or incur costly wear and tear.
To save money on fuel, check out our vast range of fuel cards.
Similarly, consider the possible trajectory of environmental legislation and your business’s responsibility that might impact your fleet in the coming years. For instance, if an electric vehicle offers many of the same benefits as a petrol or diesel car, consider choosing it over the latter to bolster your business’s efforts to minimise emissions.
The full scope of the cost of your fleet cars is not captured within its price tag. Instead, operational costs, maintenance, fuel, leasing, and tax must be considered to help you make an informed decision.
When looking at used cars in particular, it’s important to identify any faults or weaknesses that could incur future costs and develop a process for thoroughly inspecting second-hand cars to spot any potential issues.
Fleet insurance cost varies significantly based on factors like the number and type of vehicles, driver experience, claims history, and the level of coverage, but generally, insuring multiple cars under one policy can be more cost-effective than individual policies.
Maintenance is a cost that could end up high if you don’t do sufficient prior research, particularly when purchasing or leasing second-hand fleet cars. We suggest conducting proper research by calculating projections around the real cost of the vehicles you’re interested in and gauging how expensive they’ll be within six months, a year, five years, and ten years based on vehicle makes, models, and ages.
Utilising fleet vehicle maintenance software can also help you stay in control and on top of your fleet's maintenance needs.
Safety is a huge factor when picking your fleet vehicles, but it’s also an important consideration when they’re on the road. For this reason, it's worth considering investing in fleet management technologies that will help to boost the safety of your fleet.
Motia Telematics is an advanced telematics service designed to improve driver safety and reduce costs. Using the best market technology, it is easy to use, flexible, and fully customisable, so you can ensure that once you have picked the right fleet of cars, you have a functional and tailored telematics service that fits the bill.
Read our guide discussing how telematics ‘boosts safety and efficiency’ for fleets.
After safety and other important decisions that influence driver safety and compatibility with the role your fleet car needs to play, you should consider your business standards and the image you want your fleet to communicate.
Company image is important, so selecting your fleet cars and other vehicles to reflect your business appropriately could help unify this image. Factors to consider include branding and business objectives, as well as the value that standardisation could bring to your business if appearances matter.
Because of their age, used fleet cars can be a source of savings in many ways. This also applies to insurance rates, which are often lower for used vehicles. You can still find relatively new models for significantly less money than you would purchasing them new.
However, secondhand cars are typically less reliable than their brand-new counterparts, and fleet operators must balance base costs for the initial vehicle purchase against long-term maintenance and repair costs. A used car may deliver unforeseen costs in maintenance, repair, and adjustments that a new vehicle simply might not.
If you opt for used fleet vehicles, take your time to research the vehicle's value, have it inspected by a mechanic, check its VIN and history report, ask for warranties, and, if possible, conduct a test drive.
Supply chain issues in the car production pipeline are currently having a harsh impact on second-hand vehicles, pushing up prices while new vehicles are at reduced production rates. Keep this in mind when looking for your second-hand fleet vehicles, and be mindful that the price you pay for a fleet vehicle currently might not reflect its value.
Purchasing or leasing a new fleet car can be a great way to avoid the typical used car challenges around longevity and maintenance – in favour of reliability. With access to better fuel economy, you may even find that the overall cost of your new vehicle is cheaper than a second-hand counterpart when forecasting over many years. You may also enjoy the peace of mind of knowing that your car doesn’t have a murky past.
Of course, the pitfall of a new vehicle is the upfront cost you are likely to pay. New cars are fundamentally more expensive, and in addition to the immediate cost, there are additional fees to pay, such as registration and auto sales tax.
With car production currently being affected by a semiconductor chip shortage prompted by the coronavirus pandemic and the recent fire in a Japanese factory, now is a tricky time to consider purchasing new cars. Delays in the car production pipeline mean you must act efficiently and consider the value and role of new cars for your fleet.
To buy fleet cars, you can explore options like contacting manufacturers' fleet departments (e.g., Ford UK), using fleet sales companies (e.g., Direct Vehicle Sales), or attending fleet auctions.
We hope our fleet cars guide has helped you become aware of some of the key considerations to make when expanding your fleet in the modern day, as well as the legislation and market movements to watch out for.
After you’ve made your vehicle choice and your fleet cars are out on the roads, ensure they operate as safely and efficiently as possible with invaluable fleet management services.
We offer a range of fleet services that can help with every aspect of fleet management, from increasing safety with Vehicle Safety Checks to tracking mileage with Mileage Expenses.
Contact our experts today to discuss what fleet services might be helpful to you.
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