8 out of 10 finance bosses believe they can cut company car costs by up to half, according to a new survey by Lex Autolease. Despite this, almost 1 in 5 (19%) admit to not knowing the true running cost of their fleet.
The Lex Autolease survey shows that while 82% of finance directors think they can save up to 50% of their fleet costs, two thirds believe that actually 10% or less is more realistic.
Rick Francis, operations director for Lex Autolease, says: "We're entering an age of austerity and finance directors are right to demand a reduction in their fleet costs, but it's crucial to understand the underlying cost of each vehicle before acting. Blanket cost cutting can disrupt employees' ability and motivation to work productively."
Lex Autolease argues that company vehicles provide a vital business function and financing such as asset can be managed in a number of different ways to reduce costs. The company points towards a rising trend of firms selling off the vehicles they own and leasing them back to raise cash and reduce expenditure.
"It takes a great deal of constant analysis and management to minimise the real running cost of even a single vehicle. Leasing companies are in a much better position to use the, knowledge, expertise and buying power at its disposal to create cumulative savings, which can then be passed on to customers through its pricing", adds Rick Francis.
Lex Autolease also advises firms to look at their fuel and tax costs to cut out high carbon emitting, fuel consuming cars which will hit businesses and drivers in the pocket.
"Vehicle choices and driver behaviour are heavily influenced by fleet policy, not least because of the CO2-related tax system. So, this is the first area that companies should audit, review and modify.
"The company car market is mature, competitive and, consequently, service levels are high. Businesses should use this to their advantage to leverage best advice from a leasing company which is well placed to help them select the right policy."
In a fleet cost review for just nine of its corporate clients, Lex Autolease identified £50 million in deliverable, cost savings, which equates to almost £2,000 per vehicle.
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