Running a fleet of vehicles in your business is a costly exercise, so it’s wise to keep up with developments in vehicle technology and other areas like financing and tax obligations.
Reducing costs and boosting business productivity is a driving force of change, so when is it a good time to add more vehicles or change out the vehicles you’re currently running?
We have some of the reasons right here.
Why Your Business May Add Or Change Its Vehicles
Growth in staff who will need company vehicles
This is a pretty simple and obvious reason to add to your company’s tally of vehicles. As more and more people join your company, you might find that they need to embark on commercial travel as part of their job.
What you need to consider is what type of vehicle will be serving their requirements in their role for your business, plus how your business should fund the purchase. There are also tax implications to consider too, which will vary depending on where your business resides. Contact your professional advisors and also do some research online on both tax requirements and funding options.
The Telegraph in their article identifies how businesses can choose vans and the financing options including leasing finance.
Your business needs a new type of vehicle
You should consider not only the number of your workers who might need commercial vehicles at any particular time but also how exactly they would want to use those vehicles.
Fleet News notes that many firms adhere to an “open choice” policy, whereby employees are free to choose the make of car they would like. Don’t just consider the brands, though, but also the colours – some aren’t always business-friendly – and the seating capacity in case you want to transport clients.
To save on running costs and boost productivity
You might already be aware of the eco-friendly benefits of switching from a gas-guzzling vehicle to an electric one. Naturally, these benefits hold true in the business world, too. However, all the same, remember not to insist on such vehicles if there would be worrying practicality trade-offs.
For example, a driver who does over 20,000 miles annually might not find a purely electric vehicle cost-effective. Also, keep in mind that setting a CO2 cap can be a worthwhile alternative green measure.
However, most businesses reliant on large vehicles in their fleet have their eye on the advancements in autonomous vehicles like large trucks and vans, says better wise insurance. They are keen to find the best prices for fleet insurance and save on costs and boost productivity.
Your business wants to trim its tax obligations
This is another strong reason to consider investing in green tech for your fleet. You might not have realised how much you could save on van tax from switching to a zero-emissions vehicle. Various Government initiatives have ensured this for UK drivers.
Whereas in the UK, most new small and medium vans attract a universal tax rate of £250 yearly, no annual road tax applies for electric vans. The tax savings could enable you to polish up other aspects of the business.
Get the best deal for your business
When sourcing insurance for multiple vehicles in a single fleet, it’s possible to save money. Check with your broker, so you get the best deal by paying less for each extra vehicle you add to the policy.