Following a survey that the firm conducted, which said 8 out of 10 finance bosses believe they can cut company car costs by up to half, Lex Autolease has warned that firms need a proper understanding of their costs before starting to cut budgets.

Rick Francis, operations director for Lex Autolease, said: '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.

'It takes a great deal of constant analysis and management to minimise the real running cost of even a single vehicle. A leasing company is 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.'

Lex Autolease also advises firms to look at their fuel and tax costs to cut out high carbon emitting, fuel-consuming cars that 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,' said Mr Francis.

'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 claimed it identified £50 million in deliverable cost savings, which equates to almost £2,000 per vehicle.