Optimising your fleet vehicle selection
We’re here to help you make the right decisions when designing the perfect fleet for your business.
We know that selecting the right fleet isn’t always easy. You can be caught in between the wants and needs of your staff and the demands of your business. That’s why our fleet experts are exactly that: experts. They’re there to get under the skin of your business, so together you can go on to design a fleet that meets your every requirement and forge a long-term relationship along the way.
Business needs vs employee desires
When it comes to designing your fleet, there are two competing pressures:
- Business needs: what does your business require from its fleet? If it’s space then you need something practical. If it’s big mileage then you need something economical. There are many factors to consider - without even mentioning things such as the resale value - so that’s where our fleet experts come in.
- Employee desires: of course your employees want the best car but are they aware of how income tax and other expenses are charged? Our fleet experts understand how to calculate whole life costs and how to present options back to your staff so you can keep them moving and happy.
It’s a tough compromise. If you choose your business needs over your employee desires, then you’ve instantly removed a key incentive for your staff. Company cars are often a way to recruit and retain staff. Equally, if you succumb to the wants of your employees then you could be surrounded by a fleet of cars that aren’t fit for purpose. That’s why it pays to have a fleet expert who understands the market, and it’s why we strive to design you a fleet that can be both practical, cost-effective and desirable.
Solus or Dual Badge Policy
Many businesses have multiple needs from their company vehicles and few manufacturers have a model range that can meet their every requirement. Although, it’s more cost effective to have one fleet manufacturer as not only does higher purchasing power lead to discounts and benefits, but the fewer points of contact you have, the easier your job becomes.
At Volkswagen, our fleet experts are dedicated to making your job easier. We have cars that are both spacious and practical and luxurious and covetable. We also have a range of transmission and drivertrain vehicles, including plug-in hybrid and electric, so however diverse your fleet requirements may seem, we have a range of models to match.
Whole life costs
It can be tempting to jump into a fleet purchase based on the sale price or the rental costs. However a fleet manager should consider the whole life cost of a vehicle before they commit to adding it to their fleet.
When working with you to design the perfect fleet for your business, your Volkswagen fleet expert will always consider the following:
- Depreciation costs
- Fuel costs
- Maintenance costs
- Repair costs
- Tax relief
- National insurance
We take all of this into consideration to give you a more informed decision and, hopefully, save you money on a fleet that meets your needs; both practically and financially.
Structured employee purchase schemes
Many employers have started to transform their fleet with structured employee purchase schemes. Not only do these schemes provide relief from company car tax, but your employee will own their car outright at the end of the contract.
- Personal Contract Purchase (PCP):
This is a popular option that enters your employee into a finance agreement where they must make regular payments over an agreed term. Ownership of their vehicle is then transferred at the end of the contract, alongside a balloon payment, or they can return the car to the employer. An added bonus for the employee is that their monthly fee covers servicing, breakdown cover, maintenance etc. In other words, it’s all the pros of a company car, with the benefit of them owning it at the end.
- Employee Car Ownership Scheme (ECOS):
The only difference here (despite the complex tax implications that we advise you discuss fully with your Volkswagen fleet expert and HMRC) is that the employee owns the car as soon as the contract is signed. They still must pay back the cost of the vehicle, however it saves on company car tax whilst still having all the perks of a company car.