Fleet Management
ARE YOUR DRIVERS CONTROLLING YOUR FLEET COSTS?
Running a vehicle fleet for any company is a complex business, and cost control is probably the most complicated issue of all.
Keeping your finger on the pulse of constantly changing monthly rental rates is time-consuming enough, with every operator making different special offers in a constantly changing whirl of price comparisons. Are you aware though, that there are often more important issues to consider than just headline rental rates, when it comes to controlling fleet costs?
If you sign up to a three-year deal and then discover there are underlying additional cost factors, which have not been taken into consideration, it’s too late to consider early termination: you’re effectively stuck with them.
Here at Covase, we pride ourselves on our ability to spot potential cost over-runs at the planning stage. By asking all the right questions – not just of you, but more importantly of your driver end-users – we frequently uncover situations which mean the initial headline rentals will be subject to extra costs in the long term that will make a mockery of the original quotation.
Our FREE CONSULTATION will equip you with all the information you need to establish whether there are more cost-effective routes available to you, to enable you to trim your existing (and future) fleet costs.
If we do reveal additional cost implications, it is nearly always true to say that the longer you leave things without taking remedial action, the greater the financial penalties. Call us now and let us run the rule over your existing arrangements. If we can’t make any improvements to your costs, going forward, we’ll a) be very surprised and b) offer our sincere congratulations on a job well done.
Traditionally, the rental cost, which is generated by a simple calculation based on the finance and maintenance cost of a vehicle, plus the purchasing price at that time, has been the driving force behind customers fleet policies.
We, Covase are working with customers to change this simple mind set of keeping the pricing down, by looking at the “whole life cost” !!
This refers to the total cost of running a vehicle over its life. By looking at the whole life cost you get a clear understanding of true cost! associated with running a vehicle. Looking solely at the monthly rental gives you sight of only part of a vehicle’s expense.
When reviewing the whole life cost of a vehicle, a number of less visible elements need to be addressed. These are just a few, looked at by Covase in our analysis:
Rental Costs
Class 1A NIC
Corporation Tax
FUEL!!
And there are still a few more to consider??
For a whole life cost analysis of your fleet, you may be pleasantly surprised that a cheap monthly rental is not necessarily the cheapest option for your business. It is very possible that two totally different vehicles within your fleet may have the same rental, but two very different whole life costs.
A consultation with us will be able to distinguish the current cost of your fleet and look beyond the monthly rental figure in order to generate long-term cost savings through whole life cost benchmarking with Covase as your preferred Fleet Management Company.
So if you’re running a fleet of more than 5 vehicles, and you think there is half a chance that your drivers may affect your real fleet costs negatively, now is the time to call us in. It costs nothing to find out, but could save a considerable sum if we uncover major underlying issues.
Call us on 0845 3697100 to book your free Fleet Management consultation. Alternatively you can email us requesting a call back or ask us for further information. Contact info@covase.co.uk
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