If you’re using a fleet of privately-owned vehicles for business purposes, then you’ll have a considerable amount of capital tied up in these assets. The way that you use them might also have a considerable impact on your profitability. It’s therefore imperative that you have a system in place to look after them and to expand your fleet in the right way.
Let’s take a look at a few tips for managing a fleet.
Set Clear Acquisition & Disposal Strategies
How do you know when it’s time to get rid of a vehicle? When’s the right time to pick up a new one? Are you going to buy through attending car auctions, or directly from the previous owners?
The answers to these questions should stem from a set of criteria that you’ve identified in advance. You might try to anticipate when you’re going to need more cars, for example, and then align your replacement cycle accordingly. You might also pay attention to market cycles, and invest – or sell – when you think that the conditions are favourable.
Prioritise Compliance, Safety & Maintenance
If your vehicles are going to be legally roadworthy, then they’ll need to be driven by qualified, insured drivers. They’ll also need to pass their MOT. You’ll also want to minimise your costs and your legal exposure by setting out a rigorous series of safety criteria and a procedure for enforcing them. For example, you might keep track of the tread depth on your tyres, and swap them out sooner than you’re legally obliged to.
Monitor Costs, Utilisation & Asset Performance
For your investments to be cost-effective, you’ll need a means of tracking how much you spend on them. These figures should account for the up-front cost of the vehicle, the amount of fuel it consumes, its performance, its reliability, and a range of other criteria. Vehicles that are likelier to need repairs or that consume more fuel might represent liabilities. Consider your options, and make sure that you measure your performance.
Plan for Shift to Electrification & Decide on Secondary Channels
In the latest budget, Chancellor Rachel Reeves imposed new per-mile taxes on electric vehicles. Despite this, the EV might represent a cost-effective way forward for many businesses – especially those that are able to provide their own charging facilities. You’ll need to think about how you’ll dispose of your own internal-combustion-engine-based vehicles, too. Again, car auctions might represent a great way to get value for money.
