Metropolitan Digital

Metro News

Metro News

The Best Advice when Building a Company Fleet

  • Written by Stratton Finance


Building a company fleet sounds easy enough. All you need to do is buy more cars or vans, and now you have a fleet, right? Yes, that’s true, but before you head to the dealership and order a dozen new vehicles, there’s one thing you must take into consideration first.

Decide which type of ownership suits you best

The chances are that all of those fleet vehicles you see for the local delivery or gas company don’t actually belong to them. Companies who have a high turnover and a large fleet may feel that commercial hire suits them while smaller companies may prefer to buy to minimize monthly outgoings. Of course, these two are very simplistic examples, and any decision you make must be based entirely on your budget and projected income.

Here are your ownership options.

Company ownership – This is when the company buys or leases the vehicles, and your employees use them for work. It’s the simplest and often the most popular form of company car ownership and can be facilitated by business car loans or commercial leasing agreements.

Contract/commercial hire – The company hires the vehicles on a long-term basis and saves money on maintenance costs. While this option offers the most convenience, it is also more expensive, and the company will never own the vehicle.

Employee ownership – If your employees wish to own their work vehicles then you could help them by offering salary packaging and a novated lease option. This is an extremely cost-effective method, but as the employee retains ownership of the vehicle, they take it with them if they leave the job.

Deciding on your ownership model is perhaps the single most important factor when building a fleet as it has the most bearing on your bottom line. While employee ownership does seem like an attractive option, you must be sure that your employees will actually stay in the job long term. As we mentioned earlier, commercial hire is often considered for larger companies as they are less conc,erned with higher monthly costs.

Company ownership through either business car loans or commercial leasing with a view-to-purchase is possibly the better of all three options as it gives companies control over their fleet. If an initial investment is made through a deposit on each vehicle, then monthly outgoings can be kept to a minimum as loan repayments are often lower than commercial hire payments. This handy calculator will give you an idea of what your commercial car loans repayments would be for your chosen loan term.

Once you have your fleet, then it’s time to start thinking about efficient management. Here are a couple of tips to get you started.

 

Manage your fuel costs

Train your drivers to be more efficient by not leaving engines running when delivering. They can also cut their speed to help with fuel efficiency, or you can ask them to coast a little more. This means to take their foot off the gas when it’s not needed, and you’d be surprised at how much fuel you can save by doing so.

You should also cut down on unnecessary travelling or ask employees who are going to the same meeting to take one company vehicle only. Even online meetings, as opposed to meetings at a client’s office, can help you save a lot on fuel costs.

 

Use technology that improves efficiency

Your drivers may tell you that they know an area like the back of their hand but the truth is that no one can predict weather or traffic conditions. Using onboard tech such as a GPS or even an app on their phone can help reduce fuel costs and cut down on time wasted by giving your employees the most direct and efficient route to their destination. We have all this tech available to us so time to start using it.

 

Remember that whether you choose to lease your company fleet or take out a business car loan to buy outright matters not one little bit if you don’t manage your fleet efficiently and effectively. Pay close attention to how your drivers take care of their vehicles and how much time they spend behind the wheel and always look for ways to make their driving easier, safer, and more cost-effective.

As Australia's largest car finance broker, Stratton Finance know a thing or two about loans and finance. With over two decades of experience in the field they are one of the most trusted authorities in the industry. 

 

Metropolitan News Latest

Pokemon Go: The San Francisco Guide to Capturing Pikachu

If you're seeing more people walking around San Francisco with their eyes looking at their phones, you're not imagining things. In fact, they're most likely looking for Pikachu. Yes, the same Pikachu from the 90's Pokemon franchise and it has taken o...

Australia to Host World's 50 Best Restaurants in 2017

The World's 50 Best Restaurants and Tourism Australia have today announced in New York that Melbourne, Australia will be the host destination for the prestigious awards in 2017. The announcement was made by William Drew, Group Editor of The World's ...

Entertainment News

Phish’s 2018 Fall Tour to Conclude with Four Performances at MGM Grand Garden Arena

LAS VEGAS (May 15, 2018) – Phish, the American rock band known worldwide for its dedicated fan base, recently announced a 14-date Fall tour which will conclude in Las Vegas with four performances at...

Dave Damiani and The No Vacancy Orchestra are “Bending The Standard”

Tina Sinatra, Dave Damiani & Landau Murphy Jr. celebrate 100 years of Frank Sinatra in Los Angeles There have been stories about independent filmmakers, but how about the independent big band...

Billboard Chart-Topping Saxophonist VANDELL ANDREW Returns With New Single

From the vantage point of 30, his age and the name of his infectious, sensually grooving new full length album, Vandell continues to be fueled by the impressive roar of accolades and achievements th...

Metropolitan Business News

Marketing Impact of Having Online Product Reviews

Whether they are searching online for a service or a specific product, in many cases customers tend to look for online product reviews. They often want to make a comparison to other products or simply...

NYC-BASED PUBLIC TELECOM GIANT TCC TELEPLEX LAUNCHES

“TOMORROW’S HIGH TECH DIGITAL NETWORK TODAY” WITH ITS REVOLUTIONARY, MULT-MEDIA AND SERVICES DRIVEN IAP “EVERYTHING” KIOSK The TCC Teleplex IAP Kiosks Include a High-Res 360-Degree Webcam, a 22-...

HOW TO PREPARE FOR RETIREMENT: Finding and Living Your “It”

The name of my Woburn, MA financial services firm is Summit Financial Partners for a very good reason – because the clients I work with have either reached their retirement summit (i.e. they’re ready ...

How to build a distinctive Brand Voice

Nearly four decades ago, I made a presentation that captured considerable attention in the marketing community. The subject was ‘Brand Voice.’ The concept is widely used today by branding profess...

ADROLL RELAUNCHES BRAND WITH NEW COMPANY VISION

AdRoll, the growth platform for ambitious commerce businesses, has today announced an exciting new phase in the evolution of the AdRoll brand for its 37,000 customers worldwide. Recognising its uniq...

Global Shop Solutions Customer Load King Goes Live with Manufacturing Factory of the Future

THE WOODLANDS, TX, February 22, 2018 – After nearly 9 months of preparation, Load King, a world leader in store fixture manufacturing, has successfully finished their manufacturing factory of the fu...