If your employees are already using their own cars to carry out their job, for example field engineers transporting equipment, you will be paying fuel allowances for their business mileage. The cost of fuel may vary greatly depending on the type of car your employee has, the type of fuel it uses, and how many miles they are doing which in the long run could be expensive. For example, overloaded vehicles can be less cost effective because they consume more fuel. Research suggests that a 200-pound weight in your car ! On average, a van travels 12,811 miles a year. If you were driving a Citroen Berlingo for example, your annual fuel costs would increase by over £28. Driving overloaded vehicles is also illegal, and if you have an accident, your insurance is void. These factors can be a huge risk to your business, and by having vehicles of your choice, that are more fuel efficient and the appropriate size for your employee’s job, you will be able to accurately estimate and manage the running costs of your fleet.
With business cars, there are many cost benefits. Businesses are encouraged by the government to incorporate electric or hybrid vehicles into their fleet which cost very little to charge and are more economical. For example, you can claim back the cost of purchasing a car through capital allowances. If you have a car with emissions between 50g/km to 110g/km, you can claim back 18% capital allowance. Businesses can claim 100% first year allowance on low emissions cars which are cars that emit less than 50g/km of CO2. Plus, you can receive full tax relief on maintenance, other running costs and interest paid on a loan to buy the car.
Additionally, if you lease or rent a car for your fleet, you can accurately budget and manage your monthly cost.
If you lease a car for business use only, with CO2 emissions below 110g/km, all the leasing costs can be