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Bosses Demand More Company Car Savings

The poll of 100 company FDs, conducted by YouGov for the UK’s largest provider of company vehicles, reveals that employees should be worried about cut backs to their favourite company perk.

The Lex Autolease survey shows that while 82% of FDs think they can save up to 50% of their fleet costs, two thirds believe that actually 10% or less is more realistic.

Rick Francis, Operations Director for Lex Autolease, says: “We’re entering an age of austerity and FDs are right to demand a reduction in their fleet costs, but it’s crucial to understand the underlying cost of each vehicle before acting. Blanket cost cutting can disrupt employees’ ability and motivation to work productively.”

Lex Autolease argues that company vehicles provide a vital business function and financing such as asset can be managed in a number of different ways to reduce costs. The company points towards a rising trend of firms selling off the vehicles they own and leasing them back to raise cash and reduce expenditure.

“It takes a great deal of constant analysis and management to minimise the real running cost of even a single vehicle. Leasing companies are in a much better position to use the, knowledge, expertise and buying power at its disposal to create cumulative savings, which can then be passed on to customers through its pricing”, adds Rick Francis.

Lex Autolease also advises firms to look at their fuel and tax costs to cut out high carbon emitting, fuel consuming cars which will hit businesses and drivers in the pocket.

“Vehicle choices and driver behaviour are heavily influenced by fleet policy, not least because of the CO2-related tax system. So, this is the first area that companies should audit, review and modify.

“The company car market is mature, competitive and, consequently, service levels are high. Businesses should use this to their advantage to leverage best advice from a leasing company which is well placed to help them select the right policy.”

In a fleet cost review for just nine of its corporate clients, Lex Autolease identified £50 million in deliverable, cost savings, which equates to almost £2,000 per vehicle.

To discuss how to manage down costs on your fleet, contact the Lex Autolease consultancy team on 0844 824 0270 or email: fleetconsultancy@lexautolease.co.uk