As a business grows, there will be a need for some staff to travel a lot. They will usually need to visit other sites, customers, and even suppliers. When they need to go abroad, they will often board a plane to their destination country. But, what about when they need to travel to a domestic location? The answer is simple: they will go by car.
Sure, there is a plethora of public transport options available. The sad truth is that they often cost a lot more money than driving to places. Sometimes, employers may ask staff to travel in their own vehicles. But, it does make more sense to operate a fleet of company cars.
For a start, employees won’t have to deal with added wear and tear to their cars. And some workers may not be able to afford running and maintaining a car.
Does your business need to build up a fleet of company cars? Is your boss unconvinced by your motivation? Show them this blog post! Why? The following points will dispel many misconceptions your boss might have about vehicle fleets:
Misconception: company cars will use a lot of fuel
If employees need to do a lot of driving, then yes, their cars will use a lot of fuel! But, the misconception is usually over how much fuel they use. Some company bosses believe that fleet vehicles are usually thirsty V6s that pull a lot of weight.
But, nothing could get further from the truth! Almost all car makers have models designed with fleet drivers in mind. They have a range of energy-saving features and “green” engines. For example, some diesel cars boast up to 80 MPG combined! Others get powered by small petrol motors with turbochargers and hybrid drivetrains.
Misconception: vans are cheaper to rent on an ad-hoc basis
Let’s say that your business needs to transport goods on an irregular basis. Perhaps you might need to carry items so that you can attend trade shows and exhibitions. Or you may need to pick up vast quantities of items from suppliers once a month.
It works out much cheaper to lease vans than to rent them on an ad-hoc basis, believe it or not! Many leases include things like tax and insurance. Plus, they often feature service plans too. That means the cost of new van tyres, servicing and repairs aren’t expensive.
The other advantage of leasing a van versus ad-hoc renting is you’ve got a van available for use all the time!
Misconception: drivers will need to pay high taxes
The thing about company vehicles is that the people who use them all the time have to pay a tax. That’s because they get considered as a “benefit-in-kind” to the employee. In other words, they are a taxable perk of the job.
What your boss might not realize is that some cars are exempt from such taxes! These are usually the vehicles with low CO2 emissions and high fuel economy. Electric vehicles (EVs) are a prime example. Even some hybrids and diesel cars have low to zero applicable taxes.
So, your boss could operate a fleet of cars for staff where they don’t lose out financially. Plus, it’s an attractive selling point when scouting for new employees!
Misconception: you must have hundreds of vehicles
Believe it or not, you don’t need to have hundreds of vehicles in your fleet. The minimum amount of cars and/or vans is always two. Yes, having just two company vehicles means you have a fleet!
Your boss might think that there’s no way you can get good lease rates on vehicles if you only need two. But, that’s another misconception in itself! It might be worth showing your boss some examples of firms that cater to “micro” fleet users.
Such providers can often negotiate mouthwatering discounts that larger corporate customers usually enjoy. So, if your boss is worried that a fleet of two cars is expensive, tell him or her to think again!
Misconception: You’ll end up with the same vehicles for years
The truth about business fleets is you can negotiate all kinds of terms. For example, if you wanted new cars each year, you could create 12-month leases!
Most businesses prefer to lease vehicles in their fleet for a period of three years. That way, maintenance costs get kept to a minimum. Plus, companies can take advantage of new automotive technologies.
So, now you know the common misconceptions surrounding company vehicles! Thanks for reading today’s article – I hope you enjoyed it.