Venson Automotive Solutions offers advice on how to keep costs down as new car supply issues ramp up lease lengths.

Alison Bell, operations director of Venson Automotive Solutions.

The pandemic, semi-conductor chip shortages and the war in Ukraine continue to batter British new car registrations. July saw a 9% fall, the fifth month of consecutive decline, forcing fleet managers to extend vehicle lease lengths. Add to this a motor technician skills shortage driving labour costs up and the pressure on autumn MoT slots, the UK fleet industry would be forgiven for anticipating a perfect storm for escalating Service, Maintenance and Repair (SMR) costs. To help fleet managers cope with the consequences, Venson Automotive Solutions is offering some strategies to keep spiralling costs down.

“Longer leases inevitably mean extra MOTs, servicing and tyres, as well as increased wear and tear, but some judicious fleet management can really help to keep those overheads to a minimum. Every fleet is unique and so lease extensions will affect each differently. The first step in planning SMR cost savings is to examine the overall fleet in a holistic way,” says Alison Bell, operations director of Venson Automotive Solutions.

Venson suggests not only looking at the obvious legislative costs, but also reviewing the fleet profile and how it is being used to see if there is room for manoeuvre. The company also advises examining the geography of where fleet vehicles are being driven. If for example a fleet is mainly cars doing low mileage, then SMR costs may be able to be contained. Vans that are work horses, however, might incur higher costs, especially if there are issues with driver incurred incidents – where perhaps driver training could help. Of course, the terrain where vehicles are being used can create additional SMR costs; there may be vehicles on fleet doing low mileage but being used in harsh conditions such as off road. Equally there may be a vehicle doing the majority of its miles on the motorway and therefore SMR costs are likely to be lower.