Health Warning! Health Warning!
This article can only be an outline introduction. Fleet funding is a very complex and important area, with potentially serious and expensive consequences for the wrong decision. The senior management of the business must be consulted about any changes which are proposed. And it follows that there needs to be a careful evaluation of any sales proposals made by suppliers, to ensure that all the implications of what they are offering, are fully understood in relation to your particular Fleet.
If all of that makes fleet funding sound complicated, the good news is that at the broad level, it really is quite simple to understand. There are in fact only three basic approaches. All the individual derivatives which are available in the market fall into one of these three categories:
- "Driver Funding"
The last item - driver funding - is important to employers as there is a large body of business travel done through employees' own cars, against some form of allowance and rates. In fact there are more employees using their own cars (around 4 million) than there are company cars (around 2.2 million). However, many of these are only covering and claiming for small amounts of business mileage each year, where supplying a fleet car just would not make sense. But this deserves to be considered as a valid option in many cases.