While fuel price volatility may be the largest challenge facing fleets today, according to research conducted by LeasePlan, other factors near the top of the list may strike a chord for HR professionals.
Key challenges for larger fleets include driver safety and productivity, with 39% of respondents listing this area as a major consideration. A third said that reducing emissions and implementing greener fleet initiatives presented another significant hurdle.
We carried out this research in order to get a greater understanding of the companies we work for every day – and to discover ways we could help take the time burden and costs of vehicle-related administration away.
Driver safety came in close behind fuel prices and cost management as the third biggest issue – and the bigger the fleet size, the more important driver safety and driver productivity became.
Using LeasePlan’s telematics system you’ll know where your vehicles are right now and who are driving them. The data also supports your duty of care, as it can help you spot and rein in bad driving habits and improve safety.
Business critical fleets
It goes without saying that for medium-sized fleets operating business critical vehicles, it’s essential that their vehicles spend as much time as possible on the road – and increasing driver productivity was listed as the second biggest challenge for this sector.
The latest technology delivering valuable data means services, inspections and other scheduled maintenance can be planned around working patterns. It means you’re assured of the maximum possible uptime for every vehicle.
What customers want
The results in our survey from those managing small, medium and large fleets revealed each had different priorities when it came to what they wanted from a leasing provider.
- Aftersales support
- Simple contracts
- 24/7 support
- Ability to change vehicles
- 24/7 support
- Aftersales support
Lease or buy?
For an organisation of any size looking to acquire cars or vans, the question that has to be asked is whether to lease or buy.
For anyone familiar with leasing, the answer is a fairly straightforward one given the numerous benefits you get with leasing – which many organisations just aren’t aware of.
When you buy vehicles for your fleet, you’re tying up large sums of cash that could be put to better use elsewhere. Leasing customers tell us they take comfort in the fact that they’ve removed their exposure to depreciation.
Building maintenance into the contracts also makes for easier budgeting through predictable monthly costs – as well as removing the worry of unexpected maintenance bills.
In fact, our research revealed the main reasons for choosing to lease:
- Decision makers running smaller fleets like the ability to change vehicles easily – with 42% of small businesses stating this was an important consideration.
- For more than a third of respondents across all fleet sizes, financial considerations from cash flow to balance sheets are an important factor when choosing to lease.
- For all fleet segments the simplicity offered by leasing, both in life and at the end of the lease, was an important factor in choosing to lease.
Getting outside expertise in
The requirements for operating a fleet – whether it’s health and safety, compliance, environmental impact or cost reduction – can be onerous and costly. That’s why we believe the case for bringing in outside expertise to support fleet management has never been stronger.
Choosing the right provider for your business
When selecting a new leasing provider, our research revealed that choice is not all based on price.
For smaller business, the bottom line does take top priority – 70% of small businesses said that price was the deciding factor compared to 58% of those in the medium and large bracket.
Beyond price, customers want clarity from their leasing provider – straightforward contracts that are easy to understand and offer reassurance, not only in the services they are signing up to, but in the relationships they are building with their leasing provider.
Having a dedicated relationship manager is considered more important for those operating medium and larger fleets, with 36% saying this was a crucial factor.
Creating this strong, long-standing relationship ensures you get the support you need in regard to your fleet.
The benefits that come with leasing
So, what are the hidden benefits of leasing vehicles for your business, rather than buying them?
- Control – Your organisation benefits from fixed monthly rental costs based on the duration of your contract and estimated annual mileage.
- Tailored – The financial details are structured according to your company’s requirements.
- Relationship – Your implementation manager will look after the transition to account management, who will then work with your teams to deliver savings going forward.
- Flexibility – Contract extensions and early termination give your business the flexibility to deal with anything unexpected.
- Visibility – Reporting allows your in-house experts to see actual versus planned mileage for each vehicle and make appropriate updates to vehicle schedules.
- Protection – Accident management means your drivers can be kept on the road in the event of any mishaps, which can help reduce downtime.
- Support – Relief vehicles can be built into the contract, so they are ready and waiting in the event of an accident, breakdown or theft.