44 . Glasgow Business November/December 2012
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competitor. Tat vehicle will cost much more for the employer and driver to operate.” Another important component of running a
fleet is financing and Julie Jenner said that contract hire has grown in popularity as organisations have outsourced their fleet functions. She explained the advantages: “You know
exactly what you are going to be paying every month and have a vehicle that will be fit for purpose. You pay a litle more for that, but it gives you the comfort of no risk. “A finance lease is still an option, but these
tend to be taken up by companies with their own internal management structures that can manage the finance and maintenance of the fleet and its resale.” Other finance options, in addition to
contract hire and finance lease, include hire purchase and lease purchase – where the vehicle is owned by the finance/leasing company until the final payment – and personal contract hire where the vehicle is owned by the leasing company and hired to the employee for a fixed period and monthly rental. Sale and lease back is an option for an
organisation with a pre-existing fleet which allows the company to free the capital tied up in its fleet while still using it. In addition to reducing costs by using
low-emission vehicles technology can also help, from using fuel cards to the advanced functions of satellite navigation systems. Many companies reimburse their
employees for fuel using the Government’s Advisory Fuel Rates, which is higher than the actual cost of fuel for many typical company cars. By changing to a fuel card, you not only
save money by reimbursing the drivers at cost but you also benefit from detailed records of fuel expenditure, which is good for tax
Julie Jenner
”You know exactly what you’re going to be paying every month and have a vehicle that will be fit for purpose ”
purposes and may prevent fraud. Another benefit from using fuel card data is
that it can show which drivers are heavier on the gas than others, using miles per gallon data. It doesn’t mater how fuel efficient your fleet is, if the vehicles are not being driven
responsibly then all those fuel savings are being blown out of the exhaust. Tis type of driving activity can also be
identified by some of the GPS-based navigation systems, such as TomTom’s WORKsmart fleet management solutions, which has more than 16,500 business customers. Tese systems can not only find the most
efficient routes and traffic avoidance alternatives to save on petrol, they can also help each driver to adopt a more fuel-efficient driving style by providing real-time feedback on speeding, oversteering, harsh braking and engine idling. Even a driver training course for persistent
poor motorists could make a significant impact on costs – the price of the course soon repaid in higher fuel efficiency and lower fuel costs.
How to save
money GE Capital, Fleet Services’ top 10 tips to make your fuel go further
1. Keep up the pressure As well as improving vehicle safety and extending the life of your tyres, correctly inflated tyres can also reduce fuel consumption. For every 1psi (pounds per square inch) a tyre is under-inflated, the fuel consumption increases by 3 per cent. 2. Smoothly does it Adopt a smooth driving style –
accelerating and braking gently will improve fuel consumption. Aggressive driving can lead to fuel consumption increasing by 35 per cent. 3. Plan your journey Plan your route before you set off to reduce the chance of getting lost and to avoid getting stuck in traffic and combine short journeys – a car engine takes up to five miles to reach its normal running temperature and as cold engines use twice as much fuel, combining a number of small journeys into one will save money.
4. Shop around Recent studies have shown that fuel prices can fluctuate as much as 5p per litre in any given area – and don’t fill your car up to the top with fuel as this will add weight and will lead you
to burning more fuel. 5. Keep in shape Keep your vehicle in good shape – a poorly maintained car or van almost invariably uses more fuel. 6. Why resist? Did you know that approximately 50 per cent of the energy required to operate at motorway speed is devoted to overcoming wind resistance? This becomes even greater when roof racks, roof boxes and bicycle racks are attached to your car. 7. Know your limits The faster you drive the more fuel you consume – the most economical speed is 55-65mph. Any faster, and fuel efficiency falls rapidly. For example, driving at 85mph uses 40 per cent more fuel than at 70mph.
8. Watch your revs You should be changing gear between 1500 and 2000rpm in diesel cars and between 2000 rpm 2500rpm in petrol cars. Driving slowly in a higher gear burns less fuel. It’s best to change up a gear whenever you can. 9. Don’t idle If caught in a traffic queue for more than 20 seconds, turn off your engine to reduce your emissions and fuel consumption. If
you have a new vehicle, utilise the stop/start engine
technology if available. 10. Don’t be conned Air-conditioning can increase fuel consumption by 10 per cent.
For more information, visit
gedrivertoolbox.co.uk
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