How to keep motoring costs down for your business

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How to keep motoring costs down for your business

Although the UK economy is starting to recover finally, many SMEs are still struggling to keep their heads above water. Those with significant numbers of staff driving on business are particularly feeling the heat, with fuel prices in continual fluctuation and other associated costs not helping.

Take into account the poor state of many UK roads that can result in damage to tyres and suspension, and it’s not surprising that many companies are on the lookout for any potential savings. Here’s a rundown of some smart ways to keep your business motoring costs down.

Safety Measures

The cost to business of accidents caused by corporate drivers is staggering, yet in many cases they are completely avoidable. For instance, one study recently revealed that in 2014 over 2000 company car drivers hit a third party while reversing. Installing safety devices such as Camera Monitor Systems from companies such as Brigade will not only help to prevent collisions and costly repair bills, they can also dramatically reduce your transport insurance premiums.

Filling Up

Keep a close eye on petrol stations in the vicinity of your place of work, and advise staff on a weekly basis which to use for lower prices. The time spent doing this is offset by potentially huge savings if you have a lot of company vehicles on the road. Some petrol stations will also offer corporate account deals, which can result in major savings if you use them frequently. Go for a big name such as Esso or Shell which are found in most towns and cities so that wherever your drivers are they can get their discount.

Taxing Issues

Try and work with an accountant that has a good knowledge of the tax system for businesses. You could be paying far more than you need to if your present accountant is unsure of where savings can be made.

Replacements

When you come to replace vehicles, look for reliable models with low emissions and high mileage. More bang for your buck, essentially, and lower breakdown costs. Although you will probably pay more for ultra-efficient vehicles at the outset, if they are being used regularly you’ll see savings quickly, and tax and insurance costs will drop in line with improvements.

Insurance

You’re in business, not running a charity (unless your business is a charity!) So be prepared to switch your insurer ruthlessly if you feel you could be getting a better deal elsewhere. Experts recommend running a quick price comparison every time you come to renew your policy and you can often save considerable amounts of money. Always take care to get a like-for-like quote though

Hire In?

If you have a large fleet on the road, or plans to expand your current fleet, then it may make sense to hire someone to specifically manage it. Keeping a lot of vehicles on the road efficiently requires a lot of administration and a wide scope of knowledge on everything from insurance to tax and maintenance.

Do Your Homework

The concept of letting staff work from home is of growing interest to many companies. Less lengthy commutes make for happier workers, and means the company has to spend less on office space. If your people can hold meetings or collaborate on projects online, their daily driving is cut to the bone.

Work With Your Staff

Perhaps the best way of all to keep your business motoring costs as low as possible is by working with your employees to ensure they are driving safely and efficiently at all times. Look at who is going where, at what times, and see if carpooling is an option. Make sure timescales and deadlines are realistic and not too demanding, as this encourages speeding and other forms of unsafe driving. If you explain that better driving benefits the company as a whole, then staff should be receptive to training.

Tags: car maintenance, damage to tyres, Esso, insurance, motoring costs, Shell, ultra-efficient