Company Cars: The Smarter Way To Start A Fleet For Your Business

When you have a growing company, it’s likely that both you and your staff will have to travel to see clients. You may all need to work from different offices if you’re not based out of one particular location. The best way to travel by land is in a car.

Your workers may not wish to use their personal vehicles for company business. For one, it increases wear and tear on their cars. And, another reason is they may not have the right insurance cover as they aren’t just commuting to one area. The answer to this car conundrum is to have a fleet of company cars at your disposal.

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But, if you’ve never done that before, what’s involved in setting a fleet up? And are there any tips to remember or issues to avoid? Here is how you can get started:

Have someone in-house manage your fleet

The first thing you need to do is hire someone to manage your company car fleet. It’s not a mandatory step, but it’s crucial if you’re going to have tens or hundreds of vehicles in your fleet.

When you hire a fleet manager, you are getting someone that knows how to seek out the best lease deals for your firm. You are also hiring someone that can manage the mountain of paperwork that goes with your fleet!

Select the right cars for the job

Next, you need to lease vehicles that are the best in their class for specific roles. For example, directors and senior managers will want executive cars. Tradesmen will need commercial vehicles (i.e. vans). And so forth.

It’s also worth bearing in mind the tax implications of the cars you choose. In general, the tax burden is lower on eco-friendly vehicles, such as diesels and EVs.

Keep a record of the employees that use your cars

It’s vital you have proof of the employees that drive your fleet cars. First of all, you need to arrange their insurance. Second, you’ll need to know which workers have particular vehicles on any given day. And, third, the law demands that you keep detailed records.

Gray and Co Solicitors recommend using a computer-based fleet management system. That way, if your firm receives speeding tickets, you can forward them on to the correct driver.

Look for flexible lease companies

What happens if you have a stock of cars sitting in your car park gathering dust? The last thing you want to do is pay for vehicles you seldom use. That’s why you should only sign up to flexible lease agreements.

For example, you could organise short-term leases of six months or more. You might even wish to “rent” cars only for particular periods. It makes good business sense only to pay for vehicles you need.

Don’t let bad drivers behind the wheel

My final tip for today is to avoid giving fleet cars to bad drivers. They are people that are reckless behind the wheel and pose a high risk for accidents.

I recommend checking the driving history of each individual before allocating them a car. That way, you can lower your insurance burden.

 

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