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A recent study revealed that 89% of fleets are actively exploring ways to make savings*. But let’s be honest – as a fleet manager, you’re probably under constant pressure, all year long, to keep costs down.
So, we thought we’d get our very best business experts on the case.
Over the last few months, Paul Lippitt, our Senior Fleet Consultant, and his team have put together some of their favourite – but often overlooked – cost-saving tips for fleets.
And they’re right here for you to read (and claim as your own next time you have a big meeting). Enjoy…
If you’re introducing BEVs into the mix, it’s super important to create a company car policy that works for both your organisation and for your drivers. There are two key recommendations that we have for building a policy like this:
Building a policy around list price can leave your drivers with limited choice due to the expensive upfront cost of EVs. If you consider everything – including lease price, VAT, employer NIC and fuel costs – you can give them a wider choice and help your company to save in the long run.
With employees paying significantly less Benefit in Kind (BiK) tax on a new EV (compared to an ICE car) it’s not unreasonable to expect them to contribute to the WLC of the car. They’ll still be paying less in total, and your company will be saving more money.
Want to know more about Whole Life Costs and driver contributions? In our EV policy guide, we explore in detail how to create an EV policy that can save you money – and drives adoption for your drivers. Not bad, eh?
Different journeys. Different loads. Different conversion requirements. The world of LCVs is complicated. So it’s no surprise that the uptake of eLCVs has been much slower than that of EV cars. However – don’t rule them out.
eLCVs can have a huge impact on everyday running costs if you have the right conditions to make them work.
Just like electric cars, eLCVs can save you money in the long run. Although the upfront cost might be higher than a traditional LCV, you’ll often find you can save on tax (Benefit in Kind and National Insurance contributions) as well as fuel costs.
When it comes to sustainability, electric vehicles make sense – they are miles ahead of most other alternatives. So, if you’ve got punchy sustainability targets (or work with partners who do) then eLCVs are a smart way to slash your carbon footprint.
The UK government is still currently offering grants to reduce the cost of buying an eLCV. These grants provide up to £2,500 off small vans (weighing less than 2.5 tonnes) and up to £5,000 off large vans (weighing over 2.5 tonnes and up to 4.25 tonnes), and the discount will automatically be applied by sellers. These grants are available until March 2026, so it’s worth acting soon if you wish to save.
Although it’s been pushed back, the mandate is still firmly in place – by 2035, no new petrol or diesel vans (including hybrids) will be sold in the UK. In short, they’re being phased out. And the sooner you make the switch, the sooner you can futureproof your business for the changes. Of course, you need to make sure that eLCVs make sense for you beforehand.
It’s one thing to introduce EVs. It’s another to get them adopted by your drivers, and yet another to change their habits to use EVs well. So, we’ve developed a roadmap to help you maximise adoption, and the accompanying savings, with key considerations such as:
For most EVs, the upfront cost can be off-putting. However, looking at Whole Life Costs tells a different story:
It’s important that you communicate these long-term savings to your drivers, so they can see the benefits and adopt EVs accordingly. Plus, as we mentioned above, building your EV policy around WLCs can open up a wider choice of EVs to drivers who are cost-sensitive.
In a test over 5 years, FleetPoint found that an EV can save you an average of £1,657 in servicing and maintenance costs compared to an ICE vehicle.†
Most ICE fleets run on 3 to 4-year replacement cycles. Since an EV’s running costs don’t increase significantly after 4 years, they can run for 5+ years. If you factor this in, you’ll find that WLCs can reduce significantly and make EVs an even more cost-effective choice.
There’s also another good reason to run EVs for longer – because a lot of their carbon footprint is from their initial manufacturing, the longer they’re on the road, the greener they become.
Fitting home charging points reduces time wasted charging during the working day – and reliance on expensive public charging. Your cost breakeven point will be much earlier and, even if you’re worried about staff turnover, it’s well worth the installation cost.
For example, according to our charging partner Ohme the current average price for home electricity is 27p/kWh.†† However, you can get off-peak EV tariff rates that are as low as 6-7p/kWh. Meanwhile, some public EV chargers can cost as much as 70p/kWh.
Understanding individual driving patterns and daily mileage is vital for a successful EV transition. Comparing an EV’s real-life range with your drivers’ daily mileage patterns can help see if EVs are a good fit.
Talking to drivers might help, but it’s common that many overestimate the amount of range they need and the inconvenience of charging an EV – we recommend looking at the data, seeing the reality of the situation and deciding from that.
We have a saying here in our office – ‘downtime is money’. And it’s true – if your fleet’s not operating at maximum capacity, it’s inevitably going to hit your wallet. Minimising downtime (and, in turn, maximising uptime) is a challenge all fleets face – here are some tactics we recommend to mitigate that impact of downtime:
We have short-term rental (1-28 days) agreements built into our contracts. This means, if you have an unexpected breakdown, you can rely on getting the right rental for the right price to fill the gap left in your fleet. Of course, this is great for limiting unplanned downtime, as your driver can get on with business as usual while their vehicle is repaired.
Short-term rentals also allow you to respond to changing business needs, scaling your fleet during large projects or busier periods (Christmas, for example) – with minimal long-term financial commitment. This flexibility is everything – especially if you have an existing agreement built into your contract, and you know you can get the vehicles you need on short notice.
Prevention is the best cure. So regular servicing and maintenance are key to keeping your fleet up and running. Even something as simple as regularly checking tyre pressure will help your fleet run more efficiently, consume less fuel and optimise range (EVs).
More importantly, routine servicing reduces the risk of unexpected major repairs, where vehicles can end up off the road for longer and cost more to fix. So you’ll save money on this front, and you’ll also extend the lifespan of your vehicles at the same time.
It’s worth also mentioning that – as a general rule – EVs are a great solution for reducing your servicing, maintenance and downtime costs. In fact, 1 out of 4 fleets say that EVs are cheaper for servicing and have less downtime. And 57% of fleets believe EVs are better for mechanical repair.^
It doesn’t matter how good your drivers already are. There are always new things you can teach them. And there are always new things you can learn about their habits. Optimising their behaviour can save you a lot of money – you just need the right tools:
Eco-driving techniques (i.e. reducing periods of speeding) can help with fuel consumption and reduce overall wear and tear on the engine. Safety training can help you reduce the likelihood of accidents and all the associated costs.
To help, we can offer a training programme that combines interactive eLearning, immersive in-vehicle training and built-in self-assessments.
We’ve partnered with Lightfoot telematics to help you gain insights into your drivers’ on-the-road habits – both in real-time and after the fact. This can help you train your drivers to be up to 15% more fuel efficient, reduce collisions by 40% and wear and tear by 45%. Plus, you can make more informed decisions about your fleet.
For example, replanning routes to avoid heavily congested urban areas. Minimising idle time where vehicles are left running but motionless. Or, using data to inform driver training, helping your fleet take a more proactive approach to cost-saving and downtime management.
Insurance premiums can also be lower if you use telematics, as it demonstrates a fleet’s commitment to safety and loss prevention.
You have enough on your plate without having to worry about finding the best way to fund your fleet. It’s why we offer true financial flexibility with various funding options. Plus, as we’re a multi-marque provider, you can choose from almost any make and model around.
This might not be the most eye-catching advice on this list, but smart funding choices can work incredibly hard for your business. There are loads of funding options out there, dependent on your needs. You can work with one of our consultants to review which funding methods will suit your business and which contract change cycle your fleet should be on. Some of the options we offer include:
Our most popular leasing option – and the most popular across the industry. Reduce the need for large up-front investment in your fleet by leasing, rather than buying. And let us take on any Residual Value risk.
A full invoice value loan for the outright purchase of new fleet vehicles.
A middle ground between leasing and full purchase, with no need to worry about mileage or vehicle damage.
A smart option to improve cashflow and reduce the risk of depreciation to your business.
As mentioned above, great for scaling your fleet during busy periods with no long-term financial commitment.
A great, cost-effective way to give EVs to more of your workforce, where they can save 20-50% on a brand-new car. It’s easy to see the business benefits, and even easier to get started:
Want to explore Salary Sacrifice in detail? You can find out more here.
Our experts can help tailor these tips to your business — or just have a chat. Get in touch with our Fleet Consultancy team today.
*Source: https://www.gov.uk/government/publications/electric-vehicles-costs-charging-and-infrastructure/electric-vehicles-costs-charging-and-infrastructure
**Source: https://www.fleetnews.co.uk/news/electric-vehicle-smr-costs-almost-half-that-of-ice-by-year-three
†Source: https://www.fleetpoint.org/maintenance/servicing/comparing-servicing-costs-of-ice-and-electric-vehicles/
††Source: https://ohme-ev.com/blog/ev-charging-costs-at-home/
^Source: https://evfleetworld.co.uk/quarter-of-fleets-say-evs-are-cheaper-for-servicing-and-have-less-downtime/