UK firms could save over £400m by optimising their fleets
In a review of over 133,000 vehicles, LeasePlan identified opportunities for its customers to save over £50m – £390 per vehicle – by making key changes to the running of their fleet. Across the UK’s total of over one million fleet vehicles, that translates into over £400m of potential savings.
Within a year, LeasePlan had cut £22m from customers’ fleet costs by helping them to implement these improvements.
LeasePlan’s research shows that companies could achieve the greatest savings (39%) by improving technical support, such as automating vehicle servicing arrangements and specifying a partner garage for repairs.
Finding the right funding approach for a fleet can also deliver significant savings (27%).
A further 20% of savings is typically achieved by changing company policy on replacement vehicle types, and reducing off-road time through improved accident management.
And optimising tax efficiency, eg through removing free private fuel, accounted for a further 12% of possible savings.
Matt Dyer, commercial director at LeasePlan UK, said: ‘LeasePlan believes company cars and vans can be a cost-effective productivity tool, and to prove it, we have started rewarding our staff for saving customers money.
‘Optimising a fleet depends on a wide range of factors: the type of company, the vehicles involved, and the nature of usage. So while construction companies typically benefited from better technical support savings, tax efficiency was the key issue for the retail sector.
‘Through continuous review, we have been able to identify savings running into hundreds of pounds per vehicle and helped customers make those savings a reality. For companies with a large fleet, this can have a significant impact on their bottom line.’
LeasePlan’s top tips for reducing fleet cost:
1) Streamline vehicle maintenance – By automating regular servicing and using recommended suppliers for MOTs and repairs, companies can not only cut their annual maintenance bill, but also reduce the associated administrative burden.
2) Get the funding right – There can be substantial gains to be made from moving to a more appropriate funding solution for the individual company, and firms should seek expert support, such as LeasePlan’s Consultancy Services team, to identify the best available option.
3) Make the most of tax incentives – Much vehicle taxation, from corporation tax relief to NICs, is now based on CO2 emissions. Companies can make significant savings by selecting the right vehicles, observing key emissions thresholds.