What to do when your fleet is stuck on a drive Posted at: June 17, 2020 Posted in: All, Recalibrating Spend Covid19 has turned many peoples working lives upside down. What was once considered normal has completely changed in these unprecedented times. Nowhere is this more starkly illustrated than your business’s company vehicles. Many fleets have been effectively mothballed with drivers forced to stay at home and face-to-face meetings all but abandoned. Even some essential services fleets are operating on a restricted schedule until the lockdown is fully lifted. So, what should you do to reduce and recalibrate costs, if you have a leased vehicle fleet which is likely to be under-utilised? 1. Review Mileages Many vehicles will be travelling a lot less during the lockdown and for the foreseeable future. Gather latest mileages by contacting your drivers so you can see the overall impact on a per vehicle basis. 2. Re-Write Contracts Formally re-write your vehicles to new mileage parameters. Remember to factor in the “next normal” as journeys are likely to be more subdued for some time to come. Consider extending the holding period for immediate vehicle replacements where longer factory order lead times exist due to factory shutdowns. 3. Consider Minilease Vehicles Due to the uncertain post-lockdown economic environment it would be prudent to put some vehicles onto a mini-lease rather than a longer-term lease. This will provide some flexibility within the fleet to adjust for new economic circumstances and for new business operating models. 4. Stock Replacements Manufacturers may have stock vehicles which they are keen to sell quickly. Special offers are likely to be readily available and could be used tactically as part of the fleet strategy. 5. Driver Communications It is important to keep drivers informed for any changes made to the fleet. As the post Covid19 economy is likely to be more subdued drivers are more likely to be accepting of any proposed changes. Whatever your individual circumstances, future travel arrangements are likely to be very different from what they have been in the past. It’s necessary to review your fleet and more broadly, travel to take advantage of tactical opportunities and position yourselves well for the future. At JMCL we have consultants who deal with our client’s vehicle fleets day-in, day-out. If you’d like to discuss how we would save you money and improve your fleet arrangements please contact Jonny Michael e: j.michael@jmclconsulting.com or m: 07831 390161.
