Switching to blended funding could cut fleet costs by 10%

Fleet operators could reduce their annual costs by 7-10% by switching from a single funding method to multi-funding (often referred to as ‘blended funding’).

That’s the message that Claire Evans, head of fleet consultancy at Zenith, will deliver during a free to attend best practice session on fleet funding at Fleet Management Live, which takes place at the NEC in Birmingham on October 6 and 7.

Traditionally, fleet decision-makers have opted for a single funding method for their company cars – typically contract hire or outright purchase – but Evans advises using “the best possible funding option for each segment of their business” rather than  “a ‘one size fits all’ strategy’”.

This could mean having some cars on contract hire and outright purchasing others, depending on vehicle use, or running an Employee Car Ownership (ECO) scheme or salary sacrifice scheme alongside a traditional company car scheme.

The best practice session will explain the benefits of this approach.

Evans, who is a tax qualified consultant and has more than 10 years’ experience in the vehicle rental and leasing industry, said: “Although a blended funding approach maximises cost efficiencies, this is not the only benefit. It also ensures that a fleet is set up to adapt to future changes and allows for wider economic tax and legislation changes.”

Companies may be deterred from a ‘blended funding’ approach because they believe it will create an administrative burden but Evans suggests that this is no longer the case “thanks to the advanced technological solutions used by leasing companies”.

She added: “During the session attendees will be given the tools to help them assess which funding methods are best for them and then be encouraged to enact these within their organisation so that they can take advantage of cost efficiencies without delay.”

To find out more about Fleet Management Live and to register for your free ticket, visit www.fleetmanagementlive.co.uk