Contract Hire v's Leasing

I am currently looking at the replacement van for a very good plumber I know from Rochdale Lacrosse Club. As a small business he has been effectively 'blinded by science' when it comes to the information he requires to do the best for his business.

Effectively the question was "Are you quoting a Contract Hire or a Lease?"

Answer:

Contract Hire - is just that, a hire/rental of a vehicle. 50% of company cars are funded in this way. At the end of the contract the vehicle return to the hire company.

A Lease - The vehicle is, in effect owned by the person paying the bills! At the end the vehicle becomes your liability with a possibe one-off 'balloon' payment to pay. Mainly vans are funded this way.

For this client, it is in his best interest to Contract Hire, he can budget his payments and has no responsibility for the van at the end of the contract. He has better things to do than start selling one van to pay for the next!

There are so many options available that you really should speak to an impartial expert. This becomes difficult when nearly every 'expert' has their own specialism in which they make money!

Getting some press!!

I have developed a positive discourse with Ralph, the editor of a new(ish) online magazine called Business Car Manager . I was impressed by the magazine and it's content, the only one of it's kind aimed at the smaller fleet. Within 4 weeks of our first conversation I am published author!

All issues in business affect different size businesses in differing ways, in the fleet industry the smaller business is left behind in the knowledge gap, this magazine and it's contributors aim to reduce this. Of course we are delighted to be involved.

My article is here and discusses how to best organise vehicles for new staff. There are also links to advice on how to choose a vehicle broker (like us), what a leasing broker does and several other topics of interest to the normal business running a few cars.

Grey Fleets - A Bunch of Similar Colour Cars

Fleet News is having a real debate about the UK's growing 'Grey Fleet' problem. Believe it or not the reason for the Transport Minister's safety concerns is nothing to do with the colour of the cars on the road!!

The fact is that more than ever employees are using their own vehicles for use at work. So be it popping round the corner to pick the post up or travelling the UK for appointments using your own car for work purposes could be getting bosses in trouble!!

In a nutshell management is responsible for employee safety, this includes whilst out and about on work duty. Businesses who provide cars for staff tend to be on top of this a lot more than those who don't. Hence the new founded safety calls. So no matter who pays for the car - it needs to be checked, adequately insured and roadworthy!! Take note!


Click here for the Full Story

Perk Cars Are Back

I'll post more information as it comes, however the tax system is now working favourably to once again offer cars that are not necessarily essential for business!

Imagine a young graduate taking a job on the greasy pole in to corporate world. They need a car to transport themselves to work and back. It may well be more cost effective to take a fuel efficient Company Vehicle and pay say £135/month tax. The same new car could be 3 times this cost on a personal basis! The cost to the business would have to be managed but with the total cost of a reasonable Contract Hire car around £3000/year the right sums can add up. A car is worth £5000 to most people, it's a win-win situation.

Therefore it makes sense to offer a car instead of a pay rise or to tie in the talent in the interview room!

First Game of the Season

With my lacrosse team Rochdale back in the top flight we had been expecting a tough season. After a full summer of training and hard work Saturday was the season opener against Double-Champions Stockport Lacrosse Club

After an upbeat warm-up we were quickly reminded of our new-boy status and given a sporting education from a line-up of English Lacrosse stars.

For people interested in the sport of lacrosse http://www.laxforums.co.uk/ is full of discussion, results and debate from this hugely growing sport. As the number of users approached 2700 there may even be reasonable opportunities to work alongside the site to advertise and promote your business.

My Ideal Christmas Present

Technorati Tags: Fun , Sports Car , Fleet Policy

I noticed the local garden centre has started preparing for the festive season (cue the groans and 'commercialisation' comments). 

Well I just got excited again about one Christmas morning waking up to  having a car on my drive which I can use for fun just like the Caterham.

The top of the range CSR hits 0-60 in 3.1 seconds wow!! Whilst you can get a more basic Classic 1.4 for less than £13,000.

I'm pretty sure with all the talk of Health & Safety that I won't be driving my fun car to work!! I might just have to hope for a track day - hint hint!!

Driver Briefings

I've literally just put the phone down to a friend of mine who's been involved in a minor scrape in the hire car provided to them by the company she works for.

The brief yet eye-opening conversation centred around the fact that she had never had any kind of introduction to driving for the company she works for. Therefore at this moment I can imagine a bit "thank goodness she's ok we could have got in trouble" amongst the management team.

The scenario:

Lots of young, keen and willing staff on short term employment contracts PLUS appointments all over the UK.

Starbucks is covered some mornings by the boss yet the hire cars are the cheapest out there.

My impression is that the company my friend works for is struggling to plan the transport, scrimping on rentals and not informing staff of what to do in simple situations like a 'scrape', puncture or other minor fault.

The solution: When new staff start, check the driving licences, ensure they are covered under insurance and produce some kind of driver handbook for them to refer to, keeping a copy in the office as well.

Even better if the possibility of causing distress to the staff doesn't encourage change maybe with a bit more planning they could look in to providing better cars over the longer term by speaking to me! I guess money talks!

Yet more safety concerns

Daily rental group Enterprise have released research showing that over half of SME's allow employees to use their own car for business use.This is bordering on dangerous ground when it comes to Duty of Care issues as employers have a responsibility to ensure their drivers are using vehicles which are 'fit for purpose'.

If on occasion you are tempted to allow your employees to go out in their own cars you should treat them as you do your Company Car drivers.

• 
  
  Is the vehicle fit for purpose i.e motorways, building sites etc


• 
  
  Are they insured for business use?


• 
  
  Have you checked their licence and insurance?

More information can be found in this document - we have plenty of hard copies if you would like us to forward it on to you.

If your staff are frequently on the move in their own vehicles it may be in your interest to look at getting a 'pool car'. Keep it on the premises to rake back all the VAT and ensure that all your staff have access to a safe, reliable vehicle during office hours.

People meeting People

I've just read an interesting article about small businesses requiring full account management over web-based solutions being offered by the large corporates. As we deal with many of these large Funding companies on the behalf of our clients, we have yet to find an offering that replaces good, old fashioned, independent advice and assistance. In fact the quotes from the article come from one of our funding partners- Network Vehicles.


This makes a whole lot of sense, just like any product or service from web-design to PR, IT to Telecoms the average business owner places the order with the people who help take their problems away. The phone will always have a place with us (as will meetings) - do you think you could procure for your business purely online?

Watchdog for Leasing Brokers!

Well the BVRLA (British Vehicle Rental and Leasing Association) are finally putting a working group together to focus on the leasing broker market in the UK. It seems anyone can set up as a 'bedroom broker' and a fancy website alongside some 'deals of the month' can hide the (sometimes) unscrupulous operators behind them.

There are some great brokers out there who provide excellent service and the best deals to boot, it is those that will also value the importance of increasing standards, efficiency and movement away from the 'Deal of the Month' market currently taking the industry by storm.

We can't wait to hear the end of:

"Delivery next week sir, not a problem...... just sign here"
"Well the price you saw excluded metallic paint, delivery, floor mats and a £200 documentation fee"

Remember if it sounds too good to be true it probably is... our BVRLA accreditation means we won't play those games!

We see ourselves as fleet providers, shopping the market for our clients to save them time & money. Effectively outsourcing the headache of fleet away from their core business - no matter how many vehicles they run!

The Real Cost of Your New Cars

Yet again Anthony K Associates are coming up trumps with insider knowledge!! We have been sent an electronic version of The Cost, a motoring guideline aimed towards Fleet Managers.

Now you too can compare the impact of CO2 Emmissions, Benefit In Kind and P11d values on the cost of your businesses new vehicles. You may find there are more things to consider than just the monthly rental!!!!

Click Here to see the guide... (only those serious about facts and figures need apply!!!!)

Small gestures, big difference!

In order to enhance the level of service enjoyed by our clients we have been trialling supplying mats free of charge with every order!! The feedback has been fantastic.

For the forseeable future all of our new orders with have a set of car mats arrive on the same day of delivery.

In addition to this each car now also has a 'no-smoking sticker' sent out with it in order to comply with the law and this means yet another issue is taken away from our clients so they can focus firmly on what their core business.

Industry Heavyweights - and Robert

I was privileged yesterday to be among some the leading lights in the world of fleet at the quarterly meeting held by the Association of Car Fleet Operators. Some of the content discussed by fleet managers, service providers, maintenance companies and manufacturers was very interesting indeed...... here's a brief for you!

ACFO is working with Her Majestys' Revenue and Customs regarding fuel allowances for cash for car drivers. This will be a heavyweight consultation and we'll keep you posted! Here's a guide from them so you can keep updated at the moment

Duty of Care is the buzzword been lingering for a while and is now fully in the fore for fleet discussions. It is likely that there will be yet more legislation being passed to make your business ever more responsible for your drivers and the vehicles they drive!

Tyres - a big debate about when they should be replaced, however one big fleet operator insisted that tyres and oil were the main priorities for maintaining a fleet, given he runs over 1000 vehicles I believed him! (so I suggest you have a check as well!)

Mobile Phones - still being used by a large proportion of drivers. I get the impression companies think that a standard hands-free kit is legal - NOPE! Anthony K Associates can source quality bluetooth kits for our clients that are fully compliant and not too expensive!!

Roadsafe - is the Government department aimed at safe business driving. They are now recommending that Electronic Stability Programmes are fitted to all company run vehicles. The site is well worth a look for help and advice on safety matters.

Going Green with the Energy Saving Trust
Environmental impacts are probably the major concern for fleets, manufacturers and suppliers. As they want to contribute to change but are being hindered by all sorts of issues - firstly the cost of Contract Hire of a Hybrid can be over £100 more expensive per month than a standard vehicle! Although we did conclude a brand new car now has a much cleaner life-cycle than older vehicles - so we are doing our bit (by accident!)

Will I be going again - absolutely, not only did we get the chance to listen to the most up to date goings on in the world of company vehicles Anthony K Associates are also having an input in to its further development. Top Stuff!!

Which? Magazine Survey

An article on the BBC Website has interestingly and correctly called in to question 'dodgy cars'.

I'm lucky enough to speak to enough people everyday to build up a judgement of good v's bad! It only takes a couple of complaints about the oil and petrol consumption in a certain Japanese sports car for me to start mentioning it to our clients and using my independence to recommend an alternative.

The report also clearly shows patterns of how shrewd businesses, tend themselves to avoid certain manufacturers and this reflects in us providing very few of these 'dodgy cars' on to the roads. I bet the majority of unhappy drivers are those buying their own cars which they chose with their heart not their head!

Just asking around the office we can't remember the last complaint about a Ford Mondeo or VW Passat - ok ok so they don't set the world alight stood next to a Ferrari however as a business tool they do the job!

So Lexus came out on top ! Not surprised here, we are getting more and more enquiries on the IS22o than BMW and Mercedes put together! Guess what every Lexus we have delivered has phenomonal feedback too!!

Which

Van Shortage!!

At last it is in the public domain regarding what Fleetnews calls a "Chronic shortage of vans", we've been explaining for months that delivery lead times are up to 4 months for even a 'bog standard' vehicle.

The problem that we've encountered has been that some of our competitors are making false promises of 3-4 weeks, even the direct sales-force of the large leasing companies have been telling porkies! This can understandably be frustrating when we are being honest and upfront with our clients, so much so that we've lost business due to the lies of others in the market!!

Some businesses have been relying on used vehicles - a big no-no in the fleet world. For the sake of a delay in delivery, additional costs of maintenance, reliability and Health & Safety do no make this a viable option.

So please if you are thinking of a new van or vans for your businesss our advice is - get moving!!

Here is the link to the article

Smoking in Company Cars - enforcing the ban!

With the 1st July just around the corner the increased emphasis on smoking, or not smoking is further distracting boardrooms around the country. If you work for or run a smaller business it is also most likely that you are going to fall foul of the new laws.

The likelihood of 'getting away with it' is not yet known however just driving down the M62 you can spot a company run vehicle a mile off, it won't be difficult to pick up the typical Mondeo Man as he puffs away in fast lane.

The law states that it is the employers responsibility to enforce the ban, meaning that firms need to have clear policies set out and presented to drivers. I know of one large fleet that charges their drivers up to £2000 if there is even a whiff that a car has been smoked in.

Simple things like placing No Smoking Stickers cars and vans (at least 70mm in diameter!) are a start and our customers receive theirs in the post.

It would be really interesting to find out how you are coping with the no smoking ban in all aspects of running your business, maybe we can help each other!!

Confusing Industry!!!

It appears that the Company Car is still up there amongst the top 'perks' amongst employees in the UK.


Despite the increasing personal tax issues which have in recent years driven people out of company cars the business market is still outperforming the retail sector for new registrations.



In some sectors 77% of businesses still offer a Company Vehicle with some positions which is quite phenomenal!! How many of these vehicles are for the necessary business travel compared to perk vehicles is not clear. However it seems to be the larger fleets getting larger and taking advantage of the competitive market place. We are noticing that even these large users are doing a little bit of extra shopping to see what deals are available. I even read somewhere that one small public sector fleet of 30 cars was tendered out to 25 suppliers for EVERY vehicle!! What a complete waste of time!!!



We are lucky enough to be getting more and more involved in dealing with some larger fleets they open up to the multi-supply channels. Our main advantage is that we deal with all the best leasing companies anyway - so they only speak to me but are getting the most suitable deal from up to 8 different quotes per vehicle. Magic!!!

Congestion Charge in Manchester

I've read with interest today the 'proposals' for the congestion charge in Manchester! So i've been ruing over the costs and benefits of such a proposal - what might happen? You may find it over-dramatic but never mind ......... read on............!

The charge will affect us directly and indirectly and like all smaller businesses we seriously need to consider many options!

Well in a few years time I'll be paying to come work, so I'll probably have to reshuffle my entire working day like many people! Flexible working hours or even working from home are likely options to keep costs down! I might simply introduce 'core' hours where i'm in the office and then hold my meetings away from the zone at peak traffic times!

But those people with Company Cars?

Well they'll be doing less mileage I am sure. There will probably be more car pooling or car-sharing to be introduced - a positive step we think. Will it means less business for us? No, not overnight, vehicle costs have spiralled in recent years yet still the most desirable perk for any employee is the Company Car. Don't forget the huge amount of vans on the road, they have a job to do and so we will always be busy on that front!

What about businesses who run vans?

They may no longer want the City Centre business for maintenance contracts or at the least hike their rates up. Imagine trying to cover a call-out charge to include a days parking + a congestion charge!

Lots of business is on the move at the moment, could we see a shift back out of the city to the surrounding towns and businesss complexes such as Kingsway at Rochdale?

Possibly so, if office space continues to rocket in price the addition of another cost, couple with a reduced ability to gain services such as telecoms, air conditioning engineers may well result in a shift away from town!

They key thing is that it isn;t just a city centre charge, the M60 is being used as the marking point, therefore affecting 100,000's of people, businesses and car users.

I am currently happy to get on the bus to a City Centre appointment and welcome the improvements in public transport but can the improvements be so vast and traffic be reduced so much without a huge impact on the business community?

Welcome

Well, this is our first attempt to the world of blogs so we'll see how things go!

I hope to provide helpful / useful information which will enlighten business users of vehicles in the often clouded world of financing your cars and vans!! I might even attempt to add some humour for what for many is a 'headache' subject!

There are so many ways to go about searching for not only the right vehicle for the job, but then! Shock horror how to fund it...! Feel free to send questions over to me and i'll do my best to help you out!!!