Choosing the right model for your fleet of cars is an exciting prospect. But before you make that decision there are a number of things to consider, from the kinds of journeys you’ll be making to the long-term impact the cars will have on your bottom line. To help you make the right choice, read our checklist below.
Getting the basics right
Each business will have specific needs, so there’s no one size fits all model that will work across industries, and whatever model you choose will impact on the different areas of your business, from marketing to budgeting, so it’s important that you think about what your business needs and goals are.
Having said that, there are few basic points that can help you make a sensible choice.
Firstly, map out what the vehicles will be used for on a daily basis. This will help you establish what kind of car you’ll need and help narrow down models, so you can start shopping around with different manufacturers. Be specific when outlining your criteria – what kinds of journeys will you be making? How many passengers will you need? Will you be carrying heavy loads?
In addition, the ergonomics and features of the cars are of huge importance. You’ll need to consider factors such as ease of access for drivers and passengers, seat design, space, and whether you’ll need to place any additional kit or equipment along the dashboard – for example systems for transactions or radios.
Another thing that’s useful to consider in this instance, is how your business will develop and grow in the months and years to come. Initially, you might only need smaller sized cars, but if you’ll be launching new products or expanding your offering over the next few years, you might require more room. If that’s the case, question whether you’ll be able to apportion budget to buy or finance a new fleet.
Appearance
Once you have narrowed down your options, you’ll have breathing room for what’s possibly the most enjoyable part of choosing your cars - the aesthetics. It may seem like fairly arbitrary territory, but for fleet businesses it can make a huge difference. Fleet cars are your ambassadors on the road; they’ll help to communicate your businesses values and messaging, so it’s worth going for models that work with your brand’s image.
Fuel efficiency
Another significant factor is the kind of fuel you’ll need to operate with. It’s important to take your time here, as the choice you make will have a direct impact on the long-term running costs of your fleet, the amount of road tax that you have to pay and the bottom line of your business.
Typically, diesel cars are more cost efficient for longer journeys, whilst petrol cars are better for shorter journeys - but increased environmental concerns and recent legal developments mean simple distinctions are no longer straightforward.
A recent Supreme Court ruling ordered the UK government to take stronger action in tackling air pollution. Following this, Fleet Evolution, a salary sacrifice car expertise firm, issued a warning to small businesses to switch to low emission cars. In a statement on the company’s site, Andrew Leech, the company’s director, said, “Increasing the number of lower emission vehicles on the road is essential to decreasing air pollution levels. Diesel cars are a prime offender in Nitrogen Oxide pollution and could leave SMEs who allow their staff to drive diesel vehicles for work purposes subject to increased taxes and higher congestion charges”.
Bearing the above in mind, other options for your business include alternative fuels.
Alternative fuels include biodiesel, made from plant based sources such as rapeseed oil and can be used in most cars without the need to make any modifications.
Electric cars are also a good option as they have lower maintenance costs and their batteries tend to last for long periods of time. Though replacing them can be expensive – so make sure you ask if your cars will be covered by warranty that will cover the cost of the batteries.
Finally, hybrid cars combine electric technology with a traditional petrol engine. Like electric cars, hybrids have great efficiency benefits, as they can detect when engine is in use, and when to switch to energy saving mode.
Operating cycles
Alongside considerations about fuel, you’ll need to think about the journeys that will be made. Factors here include the kind of terrain your fleet drivers travel on, the frequency of journeys and the length of time different journeys are likely to take. To help, it’s worth sitting down with your team to plan journeys and work out trends to help determine what you need. If you’re a one man band, speak to other entrepreneurs who’ve run similar ventures to you to help you make the right decision.
Long term considerations
The value of the cars in your fleet is also important. For example, although you might think that the monthly costs associated with running high-value fleet cars are affordable, the insurance you’ll be paying in the long run could have a huge impact on your finances. Insurance can leave you saddled with additional costs that you hadn’t previously considered – and can be one of the more expensive aspects of running a fleet. Factors that affect this cost include the safe storage of vehicles (to reduce the risk of theft), so be mindful of how your choice of model will impact on practicalities.
Aside from insurance, the long-term costs attached to running a fleet fall on maintenance.
If you opt for a maintenance package, the cost of MOT, repairs, bodywork, tyre replacement and more can be covered. Despite this being an extra cost, it can be a safer financial option as in the event that anything should happen to your cars - you can guarantee that they will be looked after – and your business can keeping ticking over too.
Choosing fleet models can take up more time and planning than you may have first thought. But, as mentioned above, paying careful attention to the areas we’ve outlined is crucial for mitigating costs and making allowances for long term developments or changes to your business. Once you’ve made the right choice, you’ll have a stellar fleet of cost-effective cars in operation before you know it.
Content on this page is paid for and provided by Kia Fleet sponsor of the Guardian Small Business Network Accessing Expertise hub.
