In principle, owning your fleet looks relatively straightforward as long as you can obtain financing to finance each vehicle purchase and cover the associated costs. If you own a company that deals with vehicles regularly, there are certain things that you need to keep in mind. This post will cover some of the critical aspects you need to consider if working with any form of vehicle as part of your day-to-day operations.
Get Decent Insurance
Business insurance is vital for any business that operates in the UK. Some insurance is required by law, while others are optional. Nevertheless, insurance becomes even more essential if you already run a fleet of vehicles or plan to do so. No matter how you manage your auto-related business, you will need adequate motor trade insurance. You can opt for two types, including a road risk policy and a combined premises one. The road risk policy generally covers your vehicles when they are out on the road, and you have the choice between a third party and comprehensive. Third parties will protect you and your drivers from accidents that you or they cause. Comprehensive insurance will cover everything in the third party option as well as theft or accidental damage.
The combined premises insurance is the most likely candidate for your business if you run a fleet of cars from business premises. Essentially, it covers everything in comprehensive insurance but is geared towards companies that use business premises to use and store their vehicles.
Choose The Correct Vehicles
There are a few factors to consider for choosing suitable vehicles for your fleet business. First, it is crucial to understand the potential value of your fleet vehicles. What are they used for? There are three main areas:
- Transportation
- Storage
- Operational efficiency
When you decide which area you want to focus on, you can decide on the correct type of vehicle for your vehicle transportation services. For example, if you own a construction yard, you will inevitably need a fleet of heavy goods trucks capable of handling heavy loads. On the other hand, if you are an office-based business that provides company cars to executive employees, you should choose something sleeker and more efficient.
In addition to the use case, you must consider their resale value and depreciation rates after several years of use. This is why there are similar second-hand fleet cars for sale around the country, with Volkswagen Golfs or Vauxhall Insignias being the prime choice. These cars tend to hold their value and are quickly sold on to car dealerships nationwide. If you choose the wrong vehicle, you stand to lose a significant amount of money when you need to update them.
Maintain Your Fleet
Fleet maintenance is essential for this type of business. The primary purpose of this process is to maintain and repair the equipment to ensure effective operation in the long run. It also helps reduce downtime, increase productivity, and avoid unnecessary expenses. Despite this, vehicle maintenance is a hugely expensive expense for many businesses. Fleet managers need to have a system in place for maintaining their fleet to prevent costly breakdowns and accidents from happening. Furthermore, you should set up a driver training program to educate your drivers on how to drive and inspect your vehicles to keep them in good shape. It might also be a good idea to set up a small garage to perform minor repairs and upgrades as they are needed.
Driver Recruitment
Businesses need to hire reliable drivers because they can make or break your business’s success. Drivers have a massive impact on customer satisfaction, driver retention, and profitability. It’s also essential for companies that rely on vehicle fleets to recruit qualified drivers who can provide excellent customer service while working quickly and efficiently. The type of driver and the qualifications they need will vary massively depending on the service you offer, but your recruitment game must be on point to get the best drivers for the jobs available.
Driver Training
It is vital to know the basics of driving and the rules of the road. With this in mind, drivers need to have proper training before getting behind the wheel. With formal training, drivers can better understand how their actions will affect other people and curb their reckless behavior on the road. The instruction of your drivers can be done in-house or by a specialized company. In addition to learning safe driving practices, your employees should also check the vehicles before leaving. You can ensure this by setting up a checklist that they need to complete before getting behind the wheel. Having your cars inspected regularly should help you keep them in good condition and catch any potential problems before they get out of hand.
Where Will You Store Them?
Where you will store your vehicles when not in use is another critical consideration. Most cars are durable enough to handle being held outside, but other factors need review. For example, how will you ensure security and keep them from getting vandalized or stolen? With almost one car every seven minutes in the UK, theft should be one of your most significant concerns. Although your insurance should cover theft, you need to focus on prevention for your business to remain productive. To that end, you could install CCTVs and hire security guards. Moreover, you should install high-quality alarms on every vehicle and keep the keys locked away in a lockbox.
Think About How You Can Reduce Fuel Costs
If your business deals with vehicles regularly, you will know that fuel is the highest cost after salaries. Fuel costs are a big deal for any company, and they need to find ways to reduce them while keeping up with their daily operations. One way to save money is through switching from gasoline to alternative fuels like diesel and electric cars, which can reduce costs by 20-30 percent compared to gasoline-powered vehicles. However, if this isn’t possible, you can reward drivers for frugal driving and use fuel monitoring systems to check they are driving efficiently.
Running a business that relies on vehicles can be challenging. With rising fuel and maintenance costs, it can be tough to keep on top of everything. Nevertheless, with good insurance and well-trained drivers, you should be able to remain productive.
