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SME fleets go for greener company cars

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Paul Hollick, chairman of the Institute of Car Fleet Management

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1 May 2013

Paul Hollick
Paul Hollick of Alphabet says SMEs should use whole life costs when making their car choices

ALPHABET’s year-on-year fleet manager survey finds that the green message is getting through to business; but cost remains a concern

According to findings from the Alphabet Fleet Management Report (AFMR) 2012 the number of organisations that have set green fleet targets has dramatically increased over the past year; from 45 per cent in 2011 to 79 per cent in 2012.

 

The ‘Cost of Greenness’ Myth

However many companies are still concerned about the apparent cost of ‘going green’. Cost was stated as the main barrier to reaching green targets by 52 per cent of the fleet managers surveyed.

Paul Hollick, sales and marketing director, Alphabet comments, “Pursuing a greener policy for an SME small fleet will deliver cost savings in a number of areas, especially fuel.

hybrids are the green option of choice for most small fleets

“SMEs should also consider switching to Whole Life Cost calculations, as opposed to lease-cost-based choice lists, as a more effective means of identifying real costs and when cars should be changed. Think in three or four year ‘blocks’ rather than focussing on first-year savings.”

 

Under the bonnet on reducing environmental impact

Switching to lower CO2 vehicles remains the leading means of lessening vehicles’ environmental impacts  for 64 per cent of the companies surveyed, with ECO driving courses and tracking fuel data via fuel cards the next most popular choices (both 44 per cent).

Use of fuel cards in particular has taken a leap forward; rising by 14 per cent year on year.

The AFMR 2012 also asked fleet managers what their primary concerns were when considering alternative sources of fuel. 

The lack of a suitable product was the chief reason for the majority (56 per cent), closely followed by a lack of refuelling / recharging options (54 per cent) and anxiety over the range of alternative fuel vehicles (41 per cent).

Meanwhile the number that have invested in electric vehicles has seen an increase too; from 22 per cent in 2011 to 28 per cent in 2012.

While concerns about product availability, recharging and range remain, hybrid vehicles are currently the green option of choice for most small fleets, as was the case in 2011 when 37 per cent of companies had invested in hybrids rising to 40 per cent in 2012.

Read this for more on how changes in company car tax are raising hybrids’ appeal.

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Matt Morton

Matt Morton

Matt Morton is an automotive content writer for Business Car Manager

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