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The bottom line benefits of running business cars efficiently

Businesses and companies spend L20bn each year on running their fleets. Whether it’s a single car or a much larger fleet. Given the sums involved, argues John Griffiths, it’s worth making sure you make the right decisions. Not only in terms of costs, but in terms of retaining the right staff – and meeting health and safety duty of care regulations.

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10 January 2012

Businesses and companies spend L20bn each year on running their fleets. Whether it’s a single car or a much larger fleet. Given the sums involved, argues John Griffiths, it’s worth making sure you make the right decisions. Not only in terms of costs, but in terms of retaining the right staff – and meeting health and safety duty of care regulations.The best news: running even the smallest company or partnership car fleet pragmatically, efficiently and cost-effectively can save businesses and even individuals thousands of pounds annually in depreciation, taxation charges, maintenance and other costs.

The worst news: not running the fleet efficiently – such as being unaware of draconian new health and safety rules on company responsibility for driver behavour – could cost millions in uninsured damages.

In between are a host of other reasons to take the business car seriously.

As a reward for self, or as motivator, enticer or retainer of valued staff, an attractive company car has no equal. But there are huge pitfalls for the unwary in terms of car choice and benefit-in-kind tax.

For most companies and individual businessmen, company vehicles amount to a substantial cost. Collectively they spend L20bn a year on buying, leasing and maintaining them – surely, a sum daunting enough to merit serious time and thought.

Not least, there is the sheer complexity. Does it make most sense to buy, or to lease? And if lease, should it be full contract hire with maintenance, or something less costly – but probably more inconvenient? Should the whole activity be managed in house?

Should partners, directors and employees be allowed to choose their cars, or accept a single brand in pursuit of lower costs? Or maybe they are better offered a cash alternative to buy their own?

In the maze which is the company car world, there are a dozen answers to each of hundreds of questions.

Here, at last, for individuals, entrepreneurs and small businesses, is a truly effective guide through that maze.

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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