There has never been a better time, with employees more concerned about job prospects than car choice, for fleet managers to re-introduce ‘sensible’ choice lists to their fleets.
Many companies are laying off staff and making compulsory redundancies as the credit crunch continues to bite, with unemployment now over the two million mark for the first time since 1997.
As a result, employees are far less concerned about the type and choice of cars they are allowed in the company car scheme than they are in keeping their valuable – and potentially scarce – employment.
And while there may have been a move in recent years to widening choice lists to attract and recruit the right calibre of employee – with a resultant increase in fleet operating costs – now may be the ideal time for fleet managers to look at changing the emphasis.
The timing is also perfect from a taxation point of view to look at introducing choice lists that actively promote cars that emit less than 160gm/km of carbon dioxide, as these are the most financially attractive under the new capital allowance rules that start from 1 April 2009.
“Recruitment and retention of staff may have moved down the corporate priority lists, to be replaced by cost-cutting and consolidation,” said Mycompanyfleet business manager, Andrew Leech.
“That gives fleet managers the opportunity to again look at tightening choice lists, and removing exotica, such as two-seater sports cars, that may have become more commonplace in times of plenty.
“While we are not necessarily advocating a hair shirt approach, now is an the ideal time for fleet managers to take a more pragmatic view, and look at introducing choice lists that cut costs and reduce the corporate carbon footprint at the same time.
“Moving as many cars as possible into the 160g/km or less category will not only offer clear financial cost benefits, but also fuel consumption and NIC savings, driver P11D benefits, and a reduction in a fleet’s carbon footprint – and this in the perfect time to do it,” he added.
Mycompanyfleet’s Fleet HR solution is designed to help fleet managers set the right model choices in its fleet policy to take maximum advantage of the new rules and to keep fleet operating costs under control.
The solution uses a traffic light system to rank each car on the policy list with an environmental rating, with the cleanest cars given a ‘green’ carbon rating and the most polluting, a ‘red’ one. If the particular model is in the ‘red’, then it is above the 160g/km limit and the fleet manager has the option of introducing a financial penalty for choosing such vehicles, or insisting that drivers have to make a personal contribution towards its cost.
Similarly, financial incentives can be offered to drivers to choose those cars that fall within the ‘green’ zone, as there are both financial and environmental benefits for the company.
“We have designed our Fleet HR system to allow fleet managers to help set fleet policy that cuts costs and rewards environmental initiative at the same time,” said Andrew Leech.
