Policing the Grey Fleet within your business
Businesses throughout Northern Ireland continue to put their businesses at risk by allowing employees to use their own vehicles for work.
These privately owned vehicles are known as the grey fleet as they are not regulated or legislated by either the management of your business, your business advisors and risk assessors or even the government.
The message is clear and simple, but it doesn’t appear to be getting through to many business owners.
Allowing your employees to use their own cars for business purposes may cost you a lot more than their petrol expenses – it could cost you your business and even perhaps your personal liberty!
We asked Charlie McCullagh, Owner at Car Lease 4 You, Northern Ireland’s leading independent vehicle management company to explain. He said “Evidence shows that private cars used for business tend to be older, bigger and less fuel efficient than the cars that are supplied ‘fit for purpose’ by the company. If you think about it, when you choose a car, you base your select on criteria such as budget available, vehicle size to fit the family & family life and of course sometimes the status factor will come into play. Few people choose a personal car based on CO2, tax and fuel efficiency, which is certainly what you would base a company car choice on. This will generally mean that the business motoring expenses for a private care are higher.”
This hypothesis is supported by ACFO (Association of Car Fleet Operators) who calculate that on average where an employee has given up a company car, they generate an extra CO2 emission of 20g/km using their private car versus the company car they previously had. This is concerning information for companies who are actively focused on cost control and reducing their carbon footprint.
In the recent budget, Allister Darling confirmed that the rates of employee tax free mileage allowance would stay at 40p for the first 10,000 miles and 25p per mile thereafter. However, with fuel prices ever increasing, many employers are under pressure from employees to pay more than this level to make up the shortfall. Some employers are paying up to a staggering 70p per mile.
The small fleet review also highlights that ‘with few own use vehicle controls in place, employers have found that the mileage being travelled is rising and as a result so are mileage reimbursement costs’.
But it’s not only about vehicle costs
Despite the repeated media messages since April 2009, the majority of business owners still don’t check that the private vehicle their employee is using for business is either roadworthy or insured properly. Being a small business, the directors (wrongly) believe that they are not a “Fleet operator” and therefore that the regulations do not apply to them. Unfortunately, this is not true as one small business owner in the West Country in the UK will find out when he goes on trial for unlawful killing and corporate manslaughter this year.
If you are currently using your employee’s private vehicles within your business, there are a number of key checks and actions you need to be implementing according to the small business fleet review:
- Check validity of employees’ driving licences and for those with points check licences as frequently as quarterly
- Check business insurance cover is in place
- Check vehicles are serviced and maintained in accordance with manufacturer recommendations
- Ensure vehicles have an MoT certificate if applicable
- Ensure own-use vehicle drivers have to report accidents
- Ensure the vehicle being driven is suitable for the job
- Implement a vehicle age and CO2 cap
- Implement a cap on the number of miles to be travelled annually
- Ensure all drivers undergo a risk assessment and use the results to trigger further training
- Introduce eye sight checks for all drivers and make notification of medical conditions compulsory
- Remind drivers of key issues – no mobile phone use while driving, take regular breaks, plan journeys, check tyre tread and pressures etc. – with regular communications to develop a safety culture within the business
If your staff are currently driving their own vehicles or receive a cash allowance for their vehicle and you would like to understand more about reducing the levels of risk with your vehicles as well as looking at how to save money, we’d be happy to help. Car Lease 4 You is 100% independent, which means that we are not owned by any dealer group or finance house.As Northern Ireland’s leading vehicle management company, we have provided impartial advice to a wide range of businesses across the business community.
To book a free cost analysis meeting with one of our experienced consultants, simply email
info@carlease4you.co.uk call 028 71329614
Published Date:
31/07/2010
Modified Date:
31/07/2010
Keeping staff on the road on a budget
A cost efficient way to keeping your business on the road.
Car Lease 4 You, Northern Ireland’s leading vehicle management company are advising local businesses on a budget to take another look at the way they are keeping their work force mobile. There are many options that companies should consider especially if they are working on a tight budget.
For instance, it is now common place for employers to use Car Lease 4 You’s 6 month contract vehicles for new employees until they have completed their probation. This helps employers to reduce risk in their business, by keeping the cash in the business rather than purchasing a vehicle.
Car Lease 4 You’s philosophy is to help businesses manage their risk when it comes to their vehicles. Many are now turning to contract hire as the best solution.
Charlie Mc Cullagh, explains “There has been a significant upturn in the number of companies asking us about contract hire. With an affordable monthly fixed rate, protection against unforeseen expenses such as tyres or vehicle maintenance and ultimately, indemnity against any losses incurred with the vehicle disposal, you can see why contract hire is very attractive.
Some of the businesses we are talking to are having a particularly challenging time in this economic climate so we have some additional options for them to consider, such as previously enjoyed or used vehicles for either a short term or a 3 year contract. These are great ways to keep their staff mobile.”
A used car can be used for Contract Hire or Finance Lease if the vehicle is VAT qualifying. Non VAT qualifying vehicles include cars owned by a private individual, but all ex -contract hire vehicles and vehicles previously registered to a company or contract hire/finance lease company do qualify. As vehicles depreciate significantly over the first year of their life, the monthly rental for a used vehicle which has already depreciated, is a highly cost effective solution for businesses.
We asked Charlie Mc Cullagh, Owner at Car Lease 4 You why this has not been more popular in the past. He explained “Often companies have considered ex-contract vehicles as high risk. They believe that the majority are high mileage vehicles with incomplete service histories and are probably damaged. This is very far from the truth.
Now proactive vehicle management companies such as Car Lease 4 You work with companies to manage their vehicle’s mileage and condition, together with organising regular servicing and maintenance over the contract period. This means that we have a wide range of cars from 12 months to 36 months old for contract hire as well as daily rental through our Car Lease 4 You Rental programme.”
Apart from the cost effective and low risk element of using a previously enjoyed vehicle for temporary member of staff or a new member on probation for 6 months, the other main advantage with contracting VAT qualifying used cars and vans for business use is the possibility to claim half the VAT back on the finance rental and 100% of the VAT back on the maintenance charge. This makes contract hire on used vehicles one of the most cost effective ways to get your staff mobile.
All Car Lease 4 You vehicles come pre-serviced and with a peace of mind warranty on parts and labour costs against major breakdown covering the engine, gearbox, steering, suspension and electrical components.
Published Date:
22/07/2010
Modified Date:
22/07/2010
car lease 4 you
http://www.youtube.com/watch?v=Srmmmok86Gk&layer_token=834ec8cc3280ead5Please have a look at our first you tube broadcast.It is available on the above link
Published Date:
11/06/2010
Modified Date:
11/06/2010
CAR LEASE 4 YOU
please have a look at out latest overs for June 2010
us1.campaign-archive.com
Published Date:
09/06/2010
Modified Date:
09/06/2010
our summer brouchure
We are having difficulties in deciding which picture to use for our summer brouchure.Any ideas.
http://www.carlease4you.co.uk
Published Date:
06/06/2010
Modified Date:
06/06/2010
FRANCHISE
Franchise with Car Lease 4 You
The cost of the retail premises fitout is £10,000,£5,000 for traning and £10,000 franchise fee.
This includes the following
- Full training which is both class room based and on the job. This covers all aspects of running a Franchise.
- Trading under the Car Lease 4 You Brand Name
- An exclusive geographical postcode area for you to trade in
- Permanent ongoing head office support with sales and administration
- Quotation System Software + Training
- Operations and Resource Manual
- Customer Database Management Software + Training
- A dedicated & Integrated Web Presence
- Unlimited Email
- 1000 letterheads
- 1000 Business Cards
- 1000 Introductory Leaflets
- No ongoing royalties or monthly fixed fees
Additional Costs
An administration charge of £150.00 per transaction is charged against commission earned. This is a fixed fee covering all the paperwork, underwriting, contract preparation and administration work involved in locating, ordering and delivering a vehicle.
Once your number of monthly deals reaches a certain level the charge is reduced to £100 per deal
Call us today on 02871 329 614.
Published Date:
04/05/2010
Modified Date:
04/05/2010
A happy customer
Joe Leonard in Manchester taking delivery of 2 new mazda 6.
Car Lease 4 You has the contract for the next 5 years.
Published Date:
01/03/2010
Modified Date:
06/06/2010
LEASE V BUY
Lease versus Buy? The benefits of personal car leasing.
Personal car leasing, or personal contract hire as it is sometimes known, has always been extremely popular in the United States with one in four cars having been leased. Personal car leasing has also become increasingly popular in the UK yet many drivers who could benefit from leasing their car are still taking out car loans or hire purchase to aquire their vehicles. The main reason for this reluctance to lease is usually the lack of knowledge of the benefits of leasing and the confusion caused by the terminology that surrounds it. In the following article we will explain, in easy to understand language, the personal car leasing process and how it may be the ideal choice for you.
An educated customer will always be able to get a better deal.
The more information and knowledge that you have on a subject, the more likely you will be to find the best deals and to negotiate better terms of any agreement.
The benefits of personal car leasing
Before we take a look at the main benefits that car leasing has to offer it is worth bearing in mind the famous quote of oil baron Paul Getty – “If it appreciates, buy it. If it depreciates, lease it”. A car is not like a house which usually appreciates in value after purchase,whereas, when you drive away in your brand new car it is already losing value. If you take out a car loan or hire purchase agreement to purchase a car you are simply paying a set amount a month for something that is losing, not gaining value.
Let’s take a look at the main benefits of car leasing.
• Monthly repayments will be on average between 35% and 55% less costly than the repayments on a car loan. Also, in the majority of lease agreements, only a small deposit is necessary, usually amounting to 3 monthly payments.
• One of the biggest attractions of car leasing is that you are able to drive away in a car that might be out of your price range in terms of purchase price.
• The car’s warranty will normally cover the period of the lease and all maintenance costs can be covered. Road tax is also usually included in the lease.
• No huge up-front costs, capital outlay or car loans.
• Fixed price motoring where most costs remain the same for the period of the lease.
• You can have a brand new car every two to four years.
What cars are best for leasing?
It is important that the car you lease will lose as little value as possible over the term of your lease agreement. Generally speaking, cars made by German manufacturers depreciate far less than other makes. For example, the BMW Series 3 Coupe and the Volkswagen Golf are extremely popular due to the high residual value remaining at the end of the lease. This also leads to cheaper monthly payments. The BMW Series 3 Coupe is available for as little as £269 a month.
View BMW Series 3 Coupe special offers.What makes up a lease payment?
The lease price of a car will be determined by the initial purchase price (with discount taken into effect), the age, mileage, condition and residual value of the car. So, if a car loses less money and has a lower mileage, it's residual value will be higher and therefore will cost less to lease.
Jargon busting
These are a few useful terms that may have been used above.
Depreciation – this refers to the reduction in the car’s value caused by age, mileage and condition. The depreciation of a vehicle is greatest during its first year. The make and model of the car also has a large bearing on the depreciation value.
Residual Value – this term refers to the predicted value of your car when it reaches the end of the lease agreement. This amount is very important as the monthly repayments will be based on the difference between the selling price and the residual value.
was launched in the year 2009 and is widely recognised as the backbone of the Where are the best car leasing deals advertised?
Car Lease 4 You car leasing sector. This is where the most competitive car leasing special offers are.
Published Date:
23/02/2010
Modified Date:
23/02/2010