8

GWR Kia Fleet Guide

Embed Size (px)

DESCRIPTION

GWR Kia’s handy guide for all you need to know regarding your fleet.

Citation preview

Page 1: GWR Kia Fleet Guide
Page 2: GWR Kia Fleet Guide

Confused by P11Ds and BIKs? Is CO2 more important than mpg? And who’s buying what in the SME fleet market? Follow Kia’s handy guide for all you need to know

> DRIVING TODAY’SFLEET MARKET

86 per cent of these companies expect either slight or significant business growth

With the economy picking up,

company car sales have been

growing for just over a year now

as businesses start to increase their

recruitment as well as revert to a

more typical replacement cycle.

This makes it the perfect time to

take a look at investing in and

running a successful business fleet.

Sector research

New research from Kia shows this

economic expansion is likely to

continue, with the majority of the

businesses it recently surveyed

expecting to see slight or significant

company car growth in the near

future. To ensure this continues, the

additional budget for these vehicles

needs to be wisely spent and the

fleet efficiently managed.

To help run a more effective fleet

and keep your drivers on track,

Kia has produced this handy guide.

Who’s who?

SME fleets typically divide into two

groups; those running job-need cars

and those where its drivers have

a level of choice about the type of

vehicle and model that they opt

to drive.

Those businesses where the car

is a necessity of the job have an

average of 106 employees, a

turnover of between £2-10m

and are often manufacturers or

consultancy operations. They run,

on average, a ten car fleet, but also

often operate some LCVs or

trucks. Kia’s research

reveals that these

businesses have

a very positive

outlook and

86 per cent

of these

companies

How to create a business fleet / step 1expect either slight or significant

business growth. Drivers in these

fleets also cover an average annual

distance of 23,014 miles.

The requirements of the business

also mean that reliability, comfort,

practicality and value are the

overriding criteria for purchase.

In small to medium size companies

where there is driver choice there

are some marked different

requirements and identifiers.

Like the job-need group, the

typical turnover is still between

£2-10m, but the average number of

employees stands at 133 with a

fleet size of eight cars, and many of

these firms will also often have

commercial vehicles.

The business growth outlook of

these, often younger, companies is

still high at 71 per cent. Interestingly,

these firms frequently spend a far

greater amount of time managing

their fleets, possibly because of a

greater mix of vehicles, than those

companies running job-need fleets.

The priority of these businesses

in terms of their vehicles is more

focused on the ease of ownership,

including the latest in-car technology

and vehicle comfort. This is perhaps

because the drivers cover even

higher distances with an average

of 24,776 miles per year.

What’s clear from Kia’s research is

that both groups appreciate help

running their vehicles, which is

exactly what this guide to fleet

management is designed to do.

So to find out how to improve your

business transport, read on. n

How to create a business fleet / step 1

Strong business relationships are important to Kia. Our expert team and

specialist business centre staff are on hand to help, whether you are

looking to purchase your first business car or an entire fleet of vehicles.

HERE TO HELP

Call 01932 283943 or email [email protected]

to contact our team.

Adrian FreemanRegional Business Sales ManagerWest

John HargreavesHead of Fleet and Remarketing

David WilliamsNational Business Sales Manager

Andrew DunsdonNational Leasing and Rental Manager

Robin WandragNational Contract Hire Relationship Manager

Lorraine MitchellRegional Business Sales ManagerScotland, Northern Ireland and North East

Ian WilsonRegional Business Sales ManagerEast

Steve RushtonRegional Business Sales ManagerNorth

Sara StanboroughRegional Business Sales ManagerSouth

Page 3: GWR Kia Fleet Guide

Taxation is a key factor when buying a company car – here’s all you need to know to map the road ahead

> A TAXING DECISION

The single biggest driver of

company car decision-making,

and the most influential financial

factor, is a car’s CO2 emissions.

Measured in grams per kilometre,

the figure is defined by a European

test result before a car goes on sale

– a driver’s company car taxation, an

employer’s national insurance

contribution and the Vehicle Excise

Duty, or road tax, are all defined by

that figure. Intrinsically linked to a

car’s efficiency, it also gives a strong

guide as to the fuel cost that both

driver and company can expect to

incur, compared to rival models.

Benefit-in-kind

Benefit-in-kind taxation (BIK) is the

tax a driver pays for the privilege of

being given a company car. As an

employee benefit, the company car

is taxed on an equation of vehicle

cost and efficiency, so a cheap,

low-emitting vehicle will minimise

tax obligation, while an expensive

and inefficient one will leave the

driver facing a large tax bill.

The Government has the system

set up in bands, so cars fall into

different percentages of their P11D

price – the list price of the car

including VAT and delivery charges

but excluding first registration fee or

road tax – depending on the CO2

figure. At present, the lowest band

for conventional petrol or diesel

vehicles is the 11 per cent group for

those under 95 g/km emissions.

The basic rule of BIK is that low

emissions and a lower P11D price are

the best way to keep HMRC away

from your pay packet, while of

course making sure the car is

appropriate for the job in hand.

National Insurance

While BIK taxation is the big deal for

drivers, for companies it’s National

Insurance that should be a prime

focus but is sometimes forgotten.

Fortunately the priorities dovetail

with benefit-in-kind, in that it’s

P11D price and CO2 emissions that

define payments. Any car that is

available for employee’s private use,

be it a company car or a pool car, is

exposed to National Insurance. Only

vehicles that are solely for business

use, such as service engineers

travelling to appointments or pool

cars for employees to travel to a

temporary workplace, are exempt,

and it’s also worth bearing in mind

that National Insurance is also

payable on so-called ‘free fuel’ given

to drivers for private mileage.

Vehicle Excise Duty

Predictably, given the Government’s

taxation regime, Vehicle Excise Duty

(VED) is also CO2 emission based.

There are 13 bands lettered from

A-M, with the lowest, sub-100 g/km

cars, being exempt from VED

payments, while the M band for cars

over 255 g/km incurs an annual £500

bill for road tax. This can be paid

either annually or in six-month

doses, the latter working out 10 per

cent more expensive over the year.

The exception is the first tax disc.

To encourage people into lower-

emission cars, the Government has

introduced a separate set of charges

for the first registration year,

How to create a business fleet / step 2

The accountant will be very happy with a fleet of cars that are 95 g/km or under

though still in the same 13 CO2-

based categories. All band A-D

vehicles, that’s everything up to 130

g/km, are free for the first year, but

the charges ramp up heavily from

there, to the point where 255 g/km

cars and above cost a whopping

£1,090 for the first year VED.

It’s also worth noting that the

paper tax disc is being abolished

from the beginning of October 2014,

so there will be no need to display it

after that date.

Writing Down Allowance

Companies are able to claim capital

allowance on equipment for business

use, enabling firms to write down

the cost against their taxable

income. For cars, this, like all the

other tax policies, is CO2 based, but

the decisions can have major

ramifications for companies that buy

their vehicles outright rather than

leasing them.

Taking very low emission cars is

a massively advantageous move,

because anything under 96 g/km of

CO2 emissions is eligible for a 100 per

cent first-year write-down

allowance. That compares with 18

per cent per annum for cars of

96-130 g/km, and just 8 per cent,

per annum for cars over 130 g/km.

So cars bought outright that are over

130 g/km are something of a balance

sheet liability, while the accountant

will be very happy with a fleet of

cars that are 95 g/km or under. n

When it comes to finding the right cars for your company fleet, Kia has made it easy. You’ll find a range of tools at kia.co.uk/fleet to help you compare the figures across the Kia range. Plus, with many years’ combined experience in the fleet market, our business team has the expertise to help you select the perfect models to match both your team’s requirements and budget.Across the range, Kia’s EcoDynamics technology has been developed to help max the miles and save up to 12 per cent fuel usage.In particular, one Kia model which has earned its eco credentials and so impressed What Car? magazine that it named it winner of its Ultra Low Carbon Award at launch, is the Rio. Speaking at the time, What Car?’s Editor-in-Chief, Chas Hallett, praised Kia for its ‘dramatic progress’ in launching cars with the ‘lowest average CO2 emissions’.As comfortable to drive in the city as on long distance journeys, the 1.1 CRDi ‘1’ 74hp ISG 5-door model delivers up to 88.3mpg with 85 g/km CO2 emissions. With a list price of just £11,995, this frugal yet stylish model wins the hearts and minds of fleet managers, finance directors and user chooser drivers alike.

Carbon neutral: Kia’s

all-new Soul EV arrives in

the UK at the end of 2014RIO’S ECODYNAMIC DELIVERY

Call 01932 283943 or email [email protected]

to test drive the Kia range.

How to create a business fleet / step 2

Page 4: GWR Kia Fleet Guide

Struggling to get a handle on the cost of fuelling your fleet? Here’s all you need to know to max the value of every last drop

> FUEL ECONOMY

Aside from the outlay of acquiring

or leasing the car itself, the

biggest cost associated with running

a company car is fuel. But it’s a

manageable cost, and there are a

variety of tactics that can have a

real impact on your outlay at the

pumps. Without doing anything

radical, you can improve your

company’s operational effectiveness.

Simple steps include a refuelling

policy to make sure drivers don’t fill

up at motorway service stations,

instead planning to stop at cheaper

sites. Other tactics could include

driver training, in-car tracking to

monitor driver behaviour and speed

limiters, as there is an exponential

rise in fuel use versus increased

speed – a limiter set at 70mph or

lower can bring impressive results.

Building a greener fleet

Fortunately, Government policy is

quite useful on this one, as the

current taxation-based drive by

Whitehall to encourage companies to

run lower-CO2 cars equates with

efficiency, as there’s a link between

emissions and fuel economy.

Aside from the various taxation

benefits, simply choosing the most

efficient car that’s suitable for the

job can make a substantial difference

to fuel spend over the working life of

a vehicle. Official fuel economy

figures of 70 or even 80mpg are now

available on hatchbacks perfectly

capable of undertaking most

company-related tasks, especially

those with high-mileage needs.

Then there’s the newer hybrid or

plug-in electric technology that can

be beneficial to certain tasks,

especially urban-based usage. Lower

mileage users are likely to find the

latest smaller capacity petrol

engines make more sense as they’re

cheaper than diesels to buy with a

fuel saving of around 8p per litre.

Mileage payments

There are two sets of figures

attached to the amount a driver can

reclaim for company mileage,

depending on whether they are using

their own vehicle or a company car.

For drivers provided with a

company vehicle, HM Revenue and

Customs sets out nine different

bands from 9p-24p per mile

depending on engine size and

the type of fuel used – petrol,

diesel or LPG. This is reviewed

every three months to allow for

fluctuating fuel prices, and is called

the Advisory Fuel Rate. The latest

rates can be found at www.hmrc.

gov.uk/cars/advisory_fuel_current

For drivers who use their own

vehicles for work, the Approved

Mileage Allowance Payment (AMAP)

is the Government-advised rate of

reimbursement. Last revised in 2011,

it allows drivers to reclaim 45p per

mile from their employer for the

first 10,000 business miles per tax

year, dropping to 25p per mile after

that. See www.hmrc.gov.uk/rates/

travel for the latest on AMAP rates.

Recording mileage

An old adage reigns supreme here

– if you can’t measure it then you

can’t manage it. The best way of

recording mileage is to use a fuel

card, which means you have a record

of every fill, giving both the price

paid per litre by the driver and the

fuel economy, as they are required

How to create a business fleet / step 3

A small incentive for those performing best can mean a big cost saving for a companyto give the vehicle mileage at point

of payment. Some companies have

taken to incentivising either fuel

economy or even pump price, and a

small reward for those performing

best can mean a big cost saving for

a company across its entire fleet,

depending on its size.

Private fuel

Some companies still offer payment

of employee’s private fuel as a

benefit, but this is something the

Government has been trying to

discourage by ramping up the

benefit-in-kind taxation.

HMRC sets out a value of private

fuel of £21,700 in the current

2014-15 period. The employee’s tax

payment is calculated in the same

way as the company car benefit-in-

kind, using the CO2 emissions figure

to set a percentage of the £21,700

that employees will lose from their

pay packet.

This means even a lower-rate tax

payer with an efficient car will have

to use a couple of thousand pounds

worth of private fuel to make it pay.

The HMRC website has a calculator

that shows the exact payments

involved to help work out if private

fuel is a benefit worth having.

In reality private fuel is rarely

worthwhile for individuals, and the

Government plans to further

disincentivise it in the future.

See www.hmrc.gov.uk/payerti/

exb/a-z/c/cars-fuel-value

If you think that fuel efficiency comes at the expense of style, Kia’s pro_cee’d will defy your expectations. A striking mix of coupé-like styling, premium features and value mean that it’s a firm favourite with fleet managers and drivers alike.With a P11D value starting at £17,440 and a refined 1.6 litre diesel engines, with power ranging from 98 to 133 bhp, innovative weight-reducing measures ensure high fuel efficiency. On models equipped with Kia’s innovative EcoDynamics technology – which can improve fuel efficiency by up to 12 per cent – the pro_cee’d delivers up to 78.5mpg with emissions as low as 100 g/km for this attractive C-segment model.Along with its sleek shape, the pro_cee’d features stylish LED daytime running lights, cornering lights, striking bold rear lamps and, alloy wheels. Inside, the cabin has a wealth of creature comforts including Bluetooth® with voice recognition and music streaming, iPod, AUX and USB connectivity, a 6-speaker audio system, air conditioning, a tilt and telescopic steering wheel, plus, on select models, Kia’s Flex Steer system which offers three modes of steering – comfort, normal or sport.

Top up time: A refuelling policy,

driver training and tracking can

help manage fuel costs

PRO_CEE’D WITH STYLE

How to create a business fleet / step 3

Call 01932 283943 or email [email protected]

to test drive the Kia range.

Page 5: GWR Kia Fleet Guide

Ensuring that your employees are safe when out on the job is more than common sense, it’s a legal requirement

> KEEPING IT SAFE ON THE ROAD

It it important to ensure that drivers are aware of their own obligations too

The Corporate Manslaughter

and Corporate Homicide Act

2007 marked an important change

to the management of work-related

road safety. Coming into effect from

6 April 2008, it enshrined the duty

of care that all employers have to

their staff in terms of doing

everything possible to ensure they

can safely carry out their duties.

On the road

From a driving perspective, the

legislation covers a wide range of

responsibilities, including whether

a vehicle provided is fit for purpose

and correctly maintained. In addition,

it is the company’s duty to ensure

the driver is licensed, insured and not

under pressure to complete too

many appointments, and therefore

drive too far or too fast.

Companies can be found guilty of

corporate manslaughter, ‘As a result

of serious management failures

resulting in a gross breach of duty of

care’, according to the Health and

Safety Executive.

The key thing from a company’s

perspective is that prosecutions will

be of the firm itself, rather than

individuals, though the directors,

board members or other individuals

can still be pursued separately under

criminal or health and safety law.

Though there haven’t yet been any

driving-related prosecutions, several

firms have been found guilty under

the act, and hit by heavy fines and

the corresponding bad publicity and

reputational damage that comes

with a legal case.

Simple processes that are well-

documented and updated can

prevent problems, with regular

checking of driver licences, vehicle

maintenance, MOT and insurance

documentation being the first steps.

Additionally, it is important to ensure

that drivers are aware of their own

obligations too, in terms of checking

tyres and vehicle wear and tear on

a regular basis.

There are many risk management

experts in the marketplace that can

give more detailed advice on how to

ensure your company is safe from

prosecution, should the unthinkable

happen, but doing the basics right

with a clear policy, adhered to,

endorsed and enforced by senior

management, is a good place to

start. See www.hse.gov.uk/

corpmanslaughter/about for details.

Grey fleet

Ironically, in many ways the biggest

danger to a company’s risk

management strategy are vehicles

not owned by the business at all.

Grey fleet is the term given to

employees who use their own

vehicles for work business.

How to create a business fleet / step 4

If a worker is required to use their

own car for business, then they are

subject to the same regulations as

those drivers given a company car.

So the business needs to know the

vehicle in question is properly insured

for business use over and above

commuting, that it has been correctly

serviced, has a current MOT and the

driver has a valid driving licence.

This level of administration,

sometimes for drivers who may only

occasionally be required to use their

car for work, has led to some firms

switching to rental cars or pool cars.

A grey fleet is flexible and

sometimes a necessary part of

business operation, but neglecting it

in fleet policy and administration

terms could leave a company wide

open to scrutiny and prosecution if

something untoward occurs while

a worker is travelling on a journey

while doing their job. n

When it comes to safety, Kia’s range of vehicles are equipped with the latest technologies to ensure all passengers ride securely and in comfort. In fact, seven Kia models have achieved a maximum 5-star Euro NCAP safety rating from Europe’s leading road safety organisation,Kia’s 7-seat Carens was one of only two compact MPV cars to earn a maximum 5-star safety rating last year. Achieving high scores for adult and child passenger safety, safety equipment and pedestrian protection, the Carens is perfect for carrying large loads for business, and the ideal size for an active family life after office hours. Standard safety equipment includes six airbags, seatbelt reminders for all occupants, Electronic Stability Control (ESC), Hill-start Assist Control (HAC) to prevent roll-back and Emergency Stop Signalling (ESS) which flashes the brake lights to alert other motorists when the driver is making an emergency stop. With a competitive P11D, sporty styling, clever design features and premium materials throughout, the Carens is an outstanding MPV choice.

EURO NCAP’S TOUGH TEST WINNER

Final checks: Lights and tyres should be built into a regular driver maintenance checklist

How to create a business fleet / step 4

Call 01932 283943 or email [email protected]

to test drive the Kia range.

Page 6: GWR Kia Fleet Guide

If you are still in growth phase, leasing might offer an easier way to establish your business fleet

> FLEET FUNDING - BUY OR LEASE?

Finance is one of the key areas

to navigate when considering

a company fleet. Would you rather

invest your business capital up front

or stagger costs? In other words, do

you want to buy or lease your cars?

Unfortunately there isn’t a one-size-

fits-all answer, however, there are a

few simple questions that will guide

you to the perfect solution. The main

two questions to ask yourself and

your business are; do you have the

capital to buy cars outright, and do

you have the staffing resource to

manage a fleet?

Spend or save?

At a very basic level, if you’ve got the

money and staff then at least you

know you could simply buy and run

the cars yourself. However, you still

may not want to go down this path

for various reasons.

Taking the finance side first, this

needs to be broken down further.

Even if you have the funds to go out

and buy company cars, you may be

better off using that capital to help

grow your business. In which case,

leasing vehicles may be a better

option as your company develops.

Daily management

Within the broad spectrum of

leasing, you would then have a host

of options. If you want a simple

contract hire agreement where all

you’re provided with is a vehicle,

that’s fine, but you will also need to

consider how you’re going to insure

those vehicles, how you’re going to

service them, and what will you do

if one breaks down or is off the road

due to an accident?

It’s at this point you need to

consider your own skills and staffing.

You may have the resources to buy

cars, but what about running the

cars and also the drivers?

We’ll come on to managing drivers

in a future installment of our guide,

but even looking after a small fleet

of vehicles can be a complex task if

you don’t know what you’re doing.

This is where fleet management

firms come in. Often these are

attached to leasing companies,

but there are dedicated fleet

management businesses and it’s

worth remembering that you can

use separate firms for your leasing

and fleet management.

Who to choose?

If you do choose to use a leasing

company then you will need to work

out precisely what it is that you

want them to do for you against

how much it will cost.

The easiest way to do this is first

to read up (in guides such as this)

How to create a business fleet / step 5

You can use separate firms for your leasing and fleet management

about the basics that you could

potentially need, before contacting

a few leasing firms. The criteria for

selection is obviously different for

each company, but it could be helpful

to ask your business contacts for

their recommendations. Alternatively

contact an organisation such as the

British Vehicle and Rental Leasing

Association for advice.

The best leasing and fleet

management firms will conduct a

free fleet audit to match their

services against your requirements.

A handful of these will then give you

two things. They will allow you to

see how they work and provide

detailed information should you then

wish to opt for a tender process – be

sure to ask for a shortlist of clients

they’ve worked with.

After that it’s a simple case of

seeing which company offers what

you need at the best price. n

QUESTIONS TO ASK

• Do you have enough capital or

finance available up front?

• Do you have the skills and

experience to manage your

vehicles and drivers?

• Do you want to have a third

party running your cars?

• Do you want more or less

long-term flexibility?

• Would a big leasing firm’s

additional services help your

business?

Kia has partnered with one of the UK’s leading fleet management companies, ALD Automotive to create a unique fleet solution, Kia Contract Hire. With a range of highly cost-effective solutions, the 3-door 1.0 litre Picanto ‘1’ starts at just £99 per month when taken over 36-months and with an average 10,000 annual mileage. With Kia Contract Hire, you know exactly what you are paying every month for your car – the fixed low rental payments include Vehicle Excise Duty for the duration of the contract and there are no depreciation or vehicle disposal costs to worry about.

AN EASY SOLUTION

Call 01932 283943 or email [email protected]

to test drive the Kia range.

City slicker: Kia’s Picanto

offers a cost-effective and

affordable urban vehicle

How to create a business fleet / step 5

Page 7: GWR Kia Fleet Guide

Looking beyond the initial costs of investing in a fleet, how much will it cost to keep your cars road ready?

> MANAGEABLE MAINTENANCE

There is much more to the cost

of a vehicle than the simple

acquisition price or lease rate,

and this is where some clever fleet

management and spending a bit of

time scrutinising the figures can pay

dividends, because the cheapest cars

to buy or lease may not be the ones

that work out cheaper overall. A car

that’s a little more expensive at the

front end but much more efficient

will incur reduced penalties in terms

of benefit-in-kind tax for the driver,

and National Insurance, fuel use and

Vehicle Excise Duty for the company.

The basic rule that the most

efficient model is best is a good

place to start with running costs,

although that has to be balanced

against the initial purchase price to

make sure the long-term benefits

outweigh the short-term gain.

Think long-term

Costs that need to be factored in

start with a vehicle’s residual value

– the amount that will be retained

when the car is sold on. Fuel,

insurance and National Insurance are

three areas that even the most basic

of whole-life cost investigation

needs to take into account. Other

areas to consider, depending on how

detailed an analysis is deemed

necessary and worthwhile, include

the cost of finance to buy the vehicle

in the first place, service,

maintenance and repair costs.

Pump decision

Choice of fuel was previously a

foregone conclusion, because diesel

is the most CO2 efficient option and

the tax regime rewards CO2

efficiency, so the company car

market has gradually migrated

across to the black pump.

But, like many things in the fleet

industry, that viewpoint is now

How to create a business fleet / step 6

For lower mileage drivers, petrol rather than diesel is usually the intelligent choice

shifting thanks to a combination of

considerations. Firstly, automotive

manufacturers have ploughed a lot

of investment into a new breed of

low-capacity turbocharged engines,

so units offer the fuel economy of

a smaller engine with the power of

a larger one.

This, combined with the seemingly

settled differential of at least 8p per

litre cheaper for unleaded means

that for lower mileage drivers, petrol

rather than diesel is usually the

intelligent choice.

Maintenance costs

There also seems to be an imbalance

between the attention paid to

choosing and acquiring a car, and

managing the so-called in-life costs

of that vehicle. That’s especially true

among smaller businesses that don’t

have a dedicated fleet manager and

where the responsibility instead falls

on procurement, finance or even HR

specialists.

The attitude seems to be a

presumption that once a vehicle is

on fleet, its costs are largely fixed.

But with service, maintenance and

repair in particular, that’s far from

the case. For starters, and despite

common belief, there’s no

requirement to have new cars

serviced at a franchised dealer,

as long as the independent specialist

is accredited to manufacturer

standards and uses the same quality

of replacement parts. And franchised

dealers seem to be waking up to the

threat from independents, now

introducing service charters,

packages and nationwide fixed-price

servicing aimed at improving the

offering for companies and their

drivers.

Collect and deliver services are also

becoming more commonplace, so the

car can be looked after while the

driver is at work and returned before

they are ready to head home.

But downtime is also a major

consideration. If a main dealer can

turn a repair around a couple of days

quicker than an independent, or vice

versa, then the cost compared with

the inconvenience of having that

worker off the road needs to be

factored in, especially if a hire car is

required in the intervening period. n

To make your car maintenance simple, Kia has created Care-3, a cost-effective way to manage the cost of servicing your fleet. Available on new models and cars purchased in the last 11 months, Care-3 offers a fixed cost package for three or five services to ensure that your fleet investment is looked after during its lifetime and can be incorporated to include the first MOT. Additionally, Care-3 is transferable to a new owner if you sell your Kia, enhancing the residual value of your cars. Visit kia.co.uk/care3 or contact your nearest Kia dealership for details.

Carbon neutral:

Kia’s Soul EV arrives in the

UK at the end of 2014

AS EASY AS CARE-3

Call 01932 283943 or email [email protected]

to test drive the Kia range.

Quality control: Kia’s Nottingham Academy ensures its mechanics are trained to the highest standard

How to create a business fleet / step 6

Page 8: GWR Kia Fleet Guide

Cars sorted? Now it’s time to tackle the greatest variable in your fleet force, your team of drivers

> EDUCATING DRIVERS

So you’ve chosen your cars,

got the funding sorted out,

you know how much tax you’re

going to pay, you’ve worked out the

best way to fuel them, you’ve even

thought about the fleet’s safety and

environmental credentials, but now

you have to let your staff behind

the wheel. Unlike cars, people’s

behaviour is not predictable and so

they need far greater management.

This means it’s vital to get your

communications spot on to ensure

your business fleet runs smoothly.

Let’s talk

Possibly the best thing to keep in

mind when communicating with

company car drivers is that the car

is either a perk or a tool for the job.

In both instances, it is unlikely that

drivers will care for the vehicle as

much as they would if it was their

own investment. This is just human

nature and numerous surveys have

shown that damage to company cars

always happens at a higher rate

than in privately-owned cars. This

makes communication of your

expectations even more important.

By the book

We’ve discussed legislation and

risk management previously, but

communicating on these vitally

important areas is essential.

All drivers should be given a copy

of your company’s fleet handbook

and asked to sign to confirm that

they have read and understand it.

The best way to ensure that this is

achieved is to incentivise staff.

So, while no one really wants to

wade through a hefty rule-book,

if you periodically run a quiz to see

which of your drivers knows the

most and then offer a prize for the

winner, you can achieve a positive

company culture.

This technique can also be used to

ensure other messages are being

taken on board by drivers. For

instance, some fleets offer a

temporary upgrade in vehicle for

drivers who obtain the best fuel

consumption, or purchase the lowest

average per litre fuel price. Being

rewarded with driving the best car in

the fleet is often a tangible ‘perk’

among company drivers.

At the other end of the spectrum,

the person responsible for managing

the fleet will also have to monitor

vehicle accident rates and then offer

help in the form of advice and

training to those drivers that need it.

Positive support

The best communication policy is to

ensure that there is a supportive

company culture that allows drivers

to report vehicle damage without

fear of recrimination.

However, this should be monitored

closely and acted upon as minor

damage is often a sign of poor driver

skill which could lead to a more

significant accident in the future.

Drivers should know that training,

both theoretical and practical, is

there to help those with the worst

records, and be encouraged to use it.

Fleet managers should also take

on board comments from drivers

about why accidents happen, as well

as the accident data itself. For

instance, if drivers report that the

office car park is difficult to navigate,

then perhaps either the site may

need redesigning or special measures

for drivers are needed in this area –

such as making everyone reverse

into parking spaces.

How to create a business fleet / step 7

Drivers should know that training, both theoretical and practical, is there to help

Clear policy

Beyond safety, fleet managers

should also communicate why

certain decisions are made. For

instance if you’ve put a CO2 cap in

place, explain why – it will cut tax

bills and help the environment. If you

are busy with other areas of the

business, or communicating with

your drivers on a daily basis just isn’t

practicable or cost-effective, there is

an alternative approach. Talk with

one of the many fleet management

companies who are able to

implement and maintain a fleet

driver policy on your behalf. n

Advanced skills: Your fleet drivers

may benefit from a refresher course

THINGS TO REMEMBER

• Cars are either perks or tools

• Monitor driver damage and

accident rates

• Offer driver training

• Use incentives to increase

compliance

How to create a business fleet / step 7