If you’re looking into sourcing vehicles for your company and want to know more about how fleet vehicles work, you’ve come to the right place. You’ll find most of the key information here, but we’re always happy to answer any additional questions you may have.
Fleet Vehicles Explained: What You Need to Know
17
Jul
What is a fleet vehicle?
Fleet vehicles are cars or vans which have been leased or purchased by a company for their employees to use for business purposes, which they can pay for on a monthly basis – a bit like getting a car on finance.
How many vehicles are in a fleet?
There isn’t a set number of vehicles in a fleet.
Some businesses may require one vehicle, and some may need several hundred – it all depends on the number of employees in a business, and their individual requirements.
That said, the larger the fleet, the bigger the benefits.
The DVLA, for example, offer a scheme to help with administrative tasks for companies who have a fleet of more than fifty vehicles. It enables companies to tax a whole fleet at once, rather than on a ‘per vehicle’ basis.
Our vehicles for business team work with you to find a solution to you and your colleagues’ motoring requirements, whether big or small.
Does my business qualify for a fleet?
As long as you can provide proof that you run or own a business, using appropriate forms of ID, then you will be able to qualify. The usual checks apply of course, just like when you go to lease or finance a car for personal use.
What happens after I qualify?
If you do qualify, our business partnership team are here to help. They’re industry leaders in sourcing vehicles to match the needs of your business, as well as your budget.
Which vehicles are available on fleet?
We’re proud to be trusted by the world’s best manufacturers, and we’re able to offer you models from 21 different car brands.
Click here to see which vehicles we currently have business leasing offers on. Can’t see what you’re looking for or have a question? Get in touch here.
Are fleet vehicles cheaper?
Fleet vehicles tend to be cheaper due to favourable terms that can be applied, as well as incentives and monetary rebates. For example, leasing companies can reclaim the VAT on the vehicle, so they can offer savings. It’s usually the case that the more vehicles you buy, the more you will save!
Are fleet vehicles new or used?
Fleet vehicles tend to be new, which means they’ll be under warranty, and have the latest fuel-efficient, low-emission engine, and the newest safety features as standard. Great for your peace of mind, and your employees’ safety.
Are there any other benefits to owning a fleet vehicle?
One of the benefits of owning a fleet is that it saves a business purchasing vehicles outright every few years.
It also means that every few years you can upgrade to a newer, more modern vehicle.
Leasing is also “off balance sheet”, which means liability doesn’t show on the company’s accounts.
If you’re looking for a fleet solution, we can help. We can offer you a dedicated account manager, as well as access to extended demonstrations. With great relationships with several leasing providers, we’re well placed to support you with any needs your business has.
Free Car Fuel Benefit
If an employee drives a company car and receives free fuel for private use, it is subject to tax.
It’s important to estimate their private mileage beforehand, or it’s likely they could end up financially worse off.
You can calculate Car Fuel Benefit by using the purpose-built calculator on the gov.uk website.
Whole Life Costs for Company Car Fleets
There are multiple costs to consider in preparation for purchasing fleet vehicles. These are referred to as a vehicle’s ‘Whole Life Cost’ [WLC].
The factors to be considered in WLC are as follows:
- Vehicle Purchase Price
- Vehicle Registration Fee
- Vehicle Excise Duty (VED)
- Fuel Costs
- Service, maintenance and repairs
- Finance
- Insurance
- Residual Vehicle Value
- Class 1A National Insurance Contributions (NICs)
Fleet: key terms explained
The world of vehicle fleets is fraught with jargon and acronyms, so we’ve put together a glossary of the ones you’ll see most often.
- P11D – A form sent to HMRC annually by employers stating any employee benefits such as a company car.
- P11D Value – The total value of the car including list price plus VAT, delivery charges and any optional extras such as sat nav.
- Benefits-in-Kind [BIKs] – BIKs are benefits that an employee receives that is not included in their salary. Often referred to as a ‘perk’.
- Class 1A National Insurance Contributions – Class 1A NICs are payable on any benefits-in-kind [BIKs]. They are paid by the employer.
- Plug-In Car Grant – A government grant available to subsidise the purchase of an electric vehicle.
- Residual Vehicle Value – Residual value, or resale value, is the predicted value of a vehicle in the future.
- Vehicle Excise Duty [VED] – An amount payable on all vehicles, which is calculated based on your car’s CO2 emissions.
- Vehicle Purchase Price – The amount of money that was actually paid for the car, rather than the given list price.
- Vehicle Registration Fee – A one-off fee payable to DVLA when a vehicle is first registered.
- Whole Life Costs [WLC] – The costs associated with running a vehicle such as fuel costs, service and maintenance, which need to be considered before purchase.
Think fleet could be for you? Contact our business partnership team to find out more about our tailored fleet motoring solutions.
