Driving Business Summer 2014 by Fleet News

DRIVING +

Issue 8 Summer 2014 £4.50

Helping you make better decisions

REDUCING INSURANCE PREMIUMS Our 10 top tips to reduce your car and van insurance costs

DB INTERVIEW Auto Electrical Services shows how an SME can adopt big fleet standards

❚ Getting the best from your local vehicle dealer ❚ Managing cars and vans with software could reduce costs ❚ We get behind the wheel of the all-new Mini

FINDING EXTRA CASH FROM YOUR VEHICLES We show you where to look and how much your business can save

Contents 

FRONT END

Rising stress levels

ISSUE 8 Summer 2014

12 Auto Electrical Services

Business managers struggle to cope with increasing demands

MOT failure rate Some of the best-selling cars to businesses have a one-in-four chance of failing their ﬁrst MOT

8 Opinion Unless small businesses embrace a greener ethos, their position in the modern world may be jeopardised



BROADER VIEW

12 The DB interview Auto Electrical Services changes 1950s values for the latest operating standards



COST MANAGEMENT

16 Fleet management sofware Choose a package correctly and software can improve an SME’s efﬁciency

18 The role of dealers Having a good relationship with your local franchised dealer can have many beneﬁts

20 Lower insurance costs

15

Cost management report

8 Opinion

Our guide to the 10 key things to consider when looking to reduce your premiums

22 Leasing brokers



Leasing brokers and ﬂeet management companies can reduce the cost of running vehicles

CARS AND VANS

26 Mini All-new model is bigger and more efﬁcient, but retains the fun factor

27 Mercedes-Benz C-Class Does the new C-Class set a new standard in the premium car sector?

26 Mini www.mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 3

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DRIVING

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Contact us Driving Business, Media House, Lynch Wood, Peterborough PE2 6EA. Email editorial@mydrivingbusiness.co.uk If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media go to www.gothinkbig.com Editorial Editor Stephen Briers stephen.briers@bauermedia.co.uk Deputy editor Simon Harris simon.harris@bauermedia.co.uk News editor Gareth Roberts gareth.roberts@bauermedia.co.uk Features editor Sarah Tooze sarah.tooze@bauermedia.co.uk Web producer Christopher Smith christopher.smith@bauermedia.co.uk Contributors John Charles, John Maslen Production Head of publishing Luke Neal Associate editor (production) Andrew Ryan Production editor Finbarr O’Reilly Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468338 Angela Price Kerry Unwin 01733 468327 Advertising Group sales manager Sarah Crown (materinity leave) Group advertisement manager Sheryl Graham 01733 366467 Account managers Wendy Cowell 01733 366472 Laura Holloway 01733 366469 Lisa Turner 01733 366471 Laura Holloway 01733 366469 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Ofﬁce manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive ofﬁcer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: Precision Colour Printing, Telford. © 2014 Bauer Media No part of this magazine may be reproduced without the permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Driving Business will not accept responsibility for unsolicited material.

Welcome How can using software to manage your vehicles save you money? The economy is now on the upswing following one of the deepest and longest recessions in history, during which businesses cut back to survive. The fact that many of us are still here is testament to cost-saving measures implemented during the past few years. Can spending money now on something we have managed without for so long really be justiﬁed? Fleet software can provide beneﬁts when used effectively. The RAC says that staff responsible for managing company vehicles at SMEs have to split their time with numerous other duties. It’s true that managing a dozen vehicles might not be a full-time job, but the person looking after them is usually depended on for other crucial functions of the business. If you manage the company vehicles, implementing software could help alleviate some of the administration burden and focus your time better. But it’s important to do your homework beforehand and ask the right questions. You need the software to do exactly what you want it to and not end up paying for functions that you will never use. At the same time, choosing the cheapest product available might not achieve your aims and this could waste money without lightening your workload. But selecting the right system can give you better utilisation of your vehicles and more control over fuel use, both of which should pay dividends after its introduction. For many companies with a small number of vehicles the products will not be worthwhile. But now might be the time to take a look. Simon Harris Deputy editor, Driving Business mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 5

■ F RON T EN D

Business managers struggle to cope with increasing roles More than a ﬁfth (23%) of Britain’s multitasking SME managers in charge of up to 50 vehicles are struggling to cope with the number of other roles they have to perform, according to research commissioned by RAC Business Services. Nearly all (98%) of those surveyed by YouGov said they were juggling other jobs alongside their business vehicle responsibilities. These include a combination of general management (61%), ﬁnances (53%), sales and marketing (40%), HR (40%) and new business development (34%), while 32% also carried out other general administration. In particular, stress levels reach boiling point for those SME managers who look after between 10-50 vehicles, the study showed, with 49% saying they were stressed and 6% saying they were ‘very stressed’. A quarter of these managers said the admin they undertook around the vehicles and drivers had increased in the past year – of these, 28% said it was because they had more vehicles, and 33% claimed it was due to more paperwork than in the previous 12 months. The RAC Business Services statistics were

Car hire saves Investors in People Scotland £1,500 a driver a year Investors in People Scotland has saved an average of £1,500 per driver per year by replacing mileage reimbursement with car hire through a partnership with Enterprise Rent-A-Car. Employees used to travel to all parts of the country from the Edinburgh office using their own cars and then recharge the mileage covered. In some cases, employees were driving more than 15,000 miles a year in their own cars. Investors in People Scotland looked for a more effective way to keep employees mobile and daily rental emerged as a strong option due to reduced costs and lower CO2 emissions, as daily rental cars are newer and more fuel efficient. Roz Haughey, business growth co-ordinator for Investors in People Scotland, said: “We could see that our employees wanted an alternative to having to use their own vehicles. “Daily rental means we have access to a pool of well-maintained, fuel-efficient vehicles at all times at a pre-agreed rate. Even though we are only a small business using one or two vehicles at a time, we have already seen the positive impact of using car hire.” 6 ❚ Summer 2014 ❚ www.mydrivingbusiness.co.uk

published as the organisation launched a free, 24-hour fleet management tool called Business Club. The RAC’s online platform is aimed at helping businesses address these issues in a more streamlined way that provides control and convenience as well as cost and time efficiencies for SMEs. It also includes unified invoicing and a process where full details of business vehicles and drivers can be stored and updated. The software, created by Fleetondemand, gives members a password and log-in to access the secure online portal, from which they can manage their fleet. Online training is provided, backed by a helpline. RAC Business Services director David Aldridge (pictured) said: “Our Business Club platform has been created to provide a solution for this SME market, in which the task of managing mobility usually falls under one person’s responsibility. “Our survey shows that fleet buying and day-to-day tasks form just one of many responsibilities this person may look after in an SME.

“Often, the wholelife costs of moving staff around in either company vehicles or grey fleet are difficult to manage with no real tools in the market to facilitate and control this. “We set out to deliver a solution that is not only a consolidated fleet management tool, but also tackles cost reduction through a consolidated e-commerce solution. “Innovation is at the core of our strategy on Business Club. “We have worked with Fleetondemand to ensure that the framework allows us to execute changes and new functionality quickly to meet the developing user needs and behaviours. This is key to keeping ahead in the market and ensures the product remains innovative and fresh.” RAC Business Services currently works with around 21,000 SMEs, who have already been invited to join Business Club free of charge.

New camera and telematics product targets SME sector Vue launched Vuematics, a combined CCTV camera and telematics product developed specifically for businesses with between 10 and 150 vehicles at the CV Show in April. It is a one-box system which records and stores video footage and driving data such as location, acceleration, braking and speed. This means SME vehicle owners can monitor their entire fleet from one central location. The system was developed following comments received from both insurers and SME vehicle owners. Using Vuematics, businesses will be able to provide insurers with average fleet reports which will help price premiums accordingly. Glen Mullins, managing director of Vue, said: “We’ve been speaking with lots of SMEs who want more than just a one-camera dashboard recording device, but found the current telematics solutions are aimed at bigger fleets and too expensive to consider. “That’s why we have developed Vuematics.

It’s a fixed-fee solution which will give both SMEs and fleet insurers the insight they need to cost-effectively manage the efficiency and risk of their fleet.”

Glen Mullins: ‘SMEs want more than just a onecamera recording device’

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Survey reveals MOT pass rate of best-selling cars Some of the best-selling cars to businesses have a one-in-four chance of failing their first MOT, according to data published recently. Consumer motoring advice website honestjohn.co.uk has looked at data for the best-performing business cars based on registrations in 2010, and the likelihood of a first-time pass. The Mercedes-Benz E-Class has the best average for first-time MOT performance in 2014, and a number of top-selling company cars are close behind. However, in the website’s worst-performing cars, there are some popular company vehicles, including the Volkswagen Passat, that have shown a higher first-time failure rate. Some of the failures are based on faults that a driver could spot and report before an MOT, such as windscreen stone chips or cracks in the driver’s line of vision. According to data from the Department for Transport’s National Travel Survey, a company car will cover around 19,400 miles a year, with most approaching the 60,000 barrier by the time the first MOT test is due.

TOP 10 PERFORMING BUSINESS CARS Mercedes-Benz E-Class Audi A3 Vauxhall Astra Ford Fiesta Volkswagen Golf BMW 3 Series Vauxhall Insignia Nissan Qashqai Ford Focus Vauxhall Corsa Source: HonestJohn.co.uk

(86% pass rate) (85% pass rate) (83% pass rate) (83% pass rate) (82% pass rate) (82% pass rate) (81% pass rate) (81% pass rate) (81% pass rate) (80% pass rate)

But with a trend toward extended replacement cycles for cars, more company cars than ever will undergo their first MOT test while still on a fleet. A failure would result in increased downtime for the vehicle, which would increase the administration burden for a fleet as well as increase costs through sourcing a temporary replacement.

Peugeot launches Business Centre scheme Peugeot has launched a new business sales standards programme with more than 40% of its dealer network securing Business Centre status. The strategy has been implemented to support its new range of products and to provide bespoke business care to national and local companies. To become an approved Peugeot Business Centre, franchised dealers must achieve more than 35 standards across business areas. These include ensuring that staff are well trained to achieve high levels of expertise, so that the business specialist can cater for all customer requirements, from ﬂeet management to demystifying ﬁnance. Business Centre dealers also need to provide a wide selection of car and LCV demonstration and display vehicles. ■ The role of dealers feature, page 18

www.mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 7

■ F RON T EN D

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OPINION

SUSTAINABLE BUSINESS

“

It is likely that unless SMEs are able to successfully embrace a greener ethos, their position in the modern world may be jeopardised

”

SMALL BUSINESSES ARE DETERMINED TO GO GREEN he surge of interest in motivating an uncompromisingly green future seems to fall short of expectation in the UK; we are still at the tail-end of the evolutionary concept in comparison to the rest of the EU. Is this a surprise? No. The economic severity and the coalition government have both resulted in a decrease in the availability of green funding with the Prime Minister recently boasting of saving SMEs millions of pounds each year by abolishing ‘needless

T ■ LY N D O N WO O D, CEO, CO NS T RU C TA Q U OT E

8 ❚ Summer 2014 ❚ www.mydrivingbusiness.co.uk

regulations’, instead using a more cost-effective approach. This statement rocked the UK Green Building Council with chief executive Paul King referring to the Prime Minister’s speech as “damaging and irresponsible”. The pessimistic approach by the Government doesn’t seem to have had a detrimental effect on the concept of going green for a large proportion of the SME community. In a survey carried out by Lloyds Commercial Banking, an impressive one-quarter of the small businesses that responded are focusing on environmental responsibilities and sustainability in 2014, despite the lack of help from the Government. Without financial support, the transition is likely to be a challenging one, particularly for the construction industry. With energy bills continuing to increase and the Government’s green deal focusing only on properties that haven’t been built or renovated within the last three years, it means the construction industry needs to adapt and establish its place within a sustainable environment, tackling efficient energy management, waste control and resourcefulness while undertaking challenging economic issues. And it has to do this almost completely independently. This is being brushed over by the Government, despite the EU stating that 15% of all energy should come from a renewable source by 2020. It is likely that unless SMEs are able to successfully embrace a greener ethos, their position in the modern world may be jeopardised; the construction industry alone accounts for around 10% of the UK’s gross domestic product and almost three million jobs. Less financial help from the Government is likely to do more damage to the economy than good.

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■ BROADER VIE W

THE DRIVING BUSINESS INTERVIE W

Changing 1950s values for the latest operating standards Van Excellence certiﬁcation drove Auto Electrical Services to update its policies

ichard Stansfield, director of business development at Auto Electrical Services, admits that he used to have a laissez-faire attitude to the company’s seven vans and four company cars. “My mindset was ‘we’ll worry about it when it happens’,” he says. “Now I’m very much a promoter of safety and compliance.” His attitude changed thanks to Van Excellence, the accreditation scheme for van operators, which is run by the Freight Transport Association (FTA). Auto Electrical Services achieved Van Excellence last year – the smallest fleet operator to do so – and has just passed its second audit. It also recently achieved ‘Bronze’ level of the Fleet Operator Recognition Scheme (FORS), which aims to improve van and truck activity in London. Auto Electrical Services is a long-established family business – it was set up in 1952 by Stansfield’s grandfather – and has service contracts with the Metropolitan Police, the London Fire Brigade, the London Ambulance Service and a number of local councils for their vehicles’ air conditioning and heating. It also sells and fits TomTom telematics, as well as add-on fleet management software, FleetCheck. Stansfield put Auto Electrical Services forward for Van Excellence at a meeting with the FTA.

‘We had the van fleet paperwork in a folder’ “It was with a bit of trepidation because we had to change a business with 1950s values into one with a modern-day ethos of health and safety and compliance,” he says. “But we took the bull by the horns and said ‘we’ll do it’.” The company had fitted telematics in its vehicles for a number of years to send jobs out to engineers, but had little else in the way of fleet management. “It wasn’t even as technologically advanced as spreadsheets,” says Stansfield. “We had the van fleet paperwork in a folder.” He says a lot of the credit for achieving Van Excellence has to go to Auto Electrical Services projects manager Nicky Francis. She has taken responsibility for the vehicles alongside Stansfield. “Big fleets have fleet directors with fleet managers and depot managers,” Stansfield says. “Nicky and I are the fleet department and we’ve got other jobs to do as well. As an SME, you’ve got the daily running of the business to do.”

12 ❚ Summer 2014 ❚ www.mydrivingbusiness.co.uk

However, he believes SMEs shouldn’t be afraid to undertake Van Excellence. “If you follow the pre-audit checklist and work your way through it step by step, it’s not painful,” he says. “If you use other systems to help you, like telematics with a back office fleet management system, you’re 60% of the way there.” One of the first steps Francis took was learning how to check driving licences properly. She also created a driver’s manual and made sure every van had a medical kit, high visibility jacket, warning triangle, break-glass hammer, torch and accident log book. Getting drivers on board with daily vehicle checks “Before, it was hit and miss whether the drivers had those things,” she says. The next step was getting drivers to perform a daily check of their vehicles. “The drivers have got a defect pad and they go round and check the van before they go out in them in the morning,” Francis says. “We have a health and safety officer who comes in once a week and does tyre checks.” How did the company’s drivers react to the changes? “Some of them did question why they had to fill in the defect sheet every day,” says Stansfield. “They said ‘nothing has changed’. Our reaction was ‘great, if nothing has changed that means your vehicle doesn’t have a defect’. “They didn’t like the repetitiveness of it, but they’ve been re-educated – like Nicky and I have.” Drivers also undergo an annual medical check. Auto Electrical Services has moved from a paper-based system to an electronic one. It now uses FleetCheck to keep track of when vehicles are due for a service or MOT. “You name it, it’s on there,” Francis says. “Once you put the vehicles and engineers on the system, it does it for you. It alerts me with a traffic light system when services are due, tyres are low, if a driver needs a medical inspection or their licence needs inspecting or the vehicle’s MOT is due. It’s so easy you don’t have to think about it.” Stansfield adds: “There are things that can get missed as an SME unless you’re being told by a fleet management system you need to have an MOT done on this day.” The vehicle check sheets are scanned into FleetCheck, but Stansfield intends to introduce the All on Mobile app, which will pre-populate information for drivers, allow them to take photos of any damage, add any comments about work required, sign it off and submit it. The office will then receive an email to say the vehicle check has been carried out. Auto Electrical Services has also started using a broker, Fleet

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“

“Don’t be scared by what you’re going to find. The issues you are going to find are issues that need resolving” Richard Stansfield, Auto Electrical Services

”

Find, to source the best deals for vehicles rather than purchasing them outright or having leasing agreements direct with Renault Finance or other leasing providers. “Fleet Find took our old vans and part-exchanged them for the new ones which lowered the costs,” says Stansfield. All new vans are speed-limited to 68mph – a requirement of Van Excellence. Getting ready for the first Van Excellence audit took about six months, according to Stansfield. “We wanted to make sure we had all our procedures in place,” he says. “One of the questions before the FTA came was ‘do you think you’re ready?’ “Because there’s no point in the FTA doing the audit and saying ‘you haven’t done this or this’.” In the lead-up to the audit, the FTA was always available by telephone to answer any queries and advise on any procedures that needed tightening up. The audit itself took about two hours and required Francis and Stansfield to not only say what processes they had in place, but to demonstrate them too. For example, they had to produce records of driving licences. Auto Electrical Services now sits on the Van Excellence governance group, which is made up of major van fleet operators that meet to discuss and agree any changes to Van Excellence. “It’s quite interesting for us to sit there and listen to the big fleet problems and realise they have the same problems as us, but they’ve got a lot more risk, they’ve got a lot more to do,” Stansfield says. Auto Electrical Services also now promotes Van Excellence to its customers. His advice to other companies thinking of undertaking it is: “Don’t be scared by what you’re going to find. Don’t just put your head under the blanket and hope for the best. “The issues you are going to find are issues that need resolving.”

■ FAC T F I L E Auto Electrical Services’ director of business development Richard Stansﬁeld and projects manager Nicky Francis share responsibility for the company’s vehicles

Organisation: Auto Electrical Services Director of business development: Richard Stansﬁeld Projects manager: Nicky Francis Fleet size: seven vans, four cars Brands on ﬂeet: Vans: Renault Cars: Renault, Mercedes-Benz, Nissan Funding method: lease purchase

www.mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 13

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COST MANAGEMENT

REDUCE THE COST OF OPERATING VEHICLES From software to insurance: we look at how you can minimise vehicle expense

■ COST MANAGEMENT

FLEE T MANAGEMENT SOF T WARE

DOCUMENTATION

REDUCE ADMIN

FUEL MANAGMENT

SAVINGS

REMINDERS

WILL FLEET SOFTWARE CUT YOUR COSTS?

CREATE REPORTS CAR HISTORY

Choose correctly and fleet management software can improve an SME’s efficiency By Sarah Tooze sing software to manage your cars or vans might be an extra expense, but you could find it results in savings on your business’s bottom line. Here we give a rundown on what fleet management software could do for you.

WHAT IS FLEET MANAGEMENT SOFTWARE? By directly controlling the amount of paperwork that’s in existence while simultaneously managing bureaucracy, fleet management software – when effective – is sometimes likened to an additional skilled and highlyeffective staff member. It ensures that safeguards are consistently in place to demonstrate that duty-of-care obligations are both adhered to and recorded. Many fleet managers mention that this audit trail function – which is frequently one of the main reasons for installing fleet software in the first place – gives them peace of mind. But is it worthwhile for SMEs? Martin Evans, managing director at software company Jaama, says: “The benefits delivered from such systems are multiple, but they fall chiefly into three key areas: financial savings, a reduction in the amount of time spent on fleet administration and improved levels of legislative compliance. “All three issues should be a critical focus for all fleet decision-makers irrespective of the size of their fleet.”

WHAT PACKAGES ARE AVAILABLE FOR SMALL FLEET OPERATORS? The list of capabilities offered by today’s sophisticated software is lengthy, and covers myriad areas such as driver licence checks, vehicle sourcing and event reporting, as well as driver and fuel management – often with information provided in real-time. 16 ❚ Summer 2014 ❚ www.mydrivingbusiness.co.uk

“

For most SMEs, offthe-shelf software would be adequate

”

Many providers can also develop bespoke products as well as selling off-the-shelf offerings, giving businesses plenty to think about. For most SMEs, off-the-shelf software would be adequate, but consider these three questions when deciding which vehicle management software would be most suitable:

THIS IS WHAT I WANT THE SOFTWARE TO ACHIEVE – HOW DOES YOUR PRODUCT COMPARE? Do I need all the modules you’re offering me? For example, an off-the-shelf package might come with the facility to check driving licences when you already have separate existing providers. These considerations might give rise to a further question: does the off-shelf-package meet my needs or do I need a bespoke system? The key providers of ﬂeet management software include Bynx, CFC Solutions, Chevin, Civica, iFleet, Jaama and MyCompanyFleet. Most are web-based and offer off-the-shelf software that can be adapted to include modules you may require.

WHAT ARE THE BENEFITS? Fleet management software can streamline a fleet department’s operations – while also freeing up fleet managers’ time. Advantages include: ■ Reduced admin Images and documents such as MOT certificates and photographs of accident damage can be stored on fleet software. Tranman, for instance, stores these against every database record. Documents and images are easier to access and are automatically backed up with the system. Some fleet management software comes with

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SUPPLIERS

SOFTWARE UPDATES

ADMIN

SOFTWARE OPTIONS

COST

DATA INPUT TRAINING

■ W H AT T H IS M E A NS FO R YO U Fleet management software can reduce admin and improve vehicle efﬁciency, but it might be overkill for some SMEs.

integrated driver licence checking services. Jaama’s checking service can handle all the admin associated with licence checking, including obtaining a signed three-year mandate giving permission for the checks to be carried out and issuing reminders, obtaining information from the DVLA, alerting fleet operators to any licence issues that the check has found and uploading the information. ■ Centralised data Data from a range of sources, such as maintenance providers, fuel card providers, insurance companies, HR systems, accident management providers and vehicle procurement sources, should feed into a fleet software system allowing fleet operators to have all the details in one place. Fleet operators can also use the software to create reports – from straightforward fleet lists to pence per mile analysis. Systems can also give them a dashboard view when they log in, so they can see the status of the fleet ‘at a glance’. ■ Better control over fuel usage Fuel cost is a large outgoing for many SMEs so tightly controlling it using fleet management software is worthwhile, with some companies reporting fuel spend reductions of up to 8%. Fleet software (in conjunction with fuel card data) allows fleet operators to identify when super premium fuels are being purchased instead of regular fuels and compare actual mpg against expected mpg or to be alerted when a vehicle exceeds a target mpg figure. Ashley Sowerby, managing director of Chevin Fleet Solutions, says: “By identifying specific individuals, fleet managers have the evidence and information needed to influence future habits at the petrol pump.” Software also allows companies to detect fuel card fraud. Jaama’s system, for instance, uses data imported from CAP to highlight model fuel tank capacity. It ensures that the purchase of fuel quantities greater than vehicle fuel tank capacity can be easily identified.

“

Take the time to ensure the software you opt for can save time and reduce costs

WHAT ISSUES SHOULD I BE AWARE OF? Cost is one of the key considerations, but suppliers warn that some customers are driven by procurement to choose the cheapest, and not necessarily the best, solution. Sowerby warns that a company could end up with a cheap, basic system that offers little more than could be achieved by an experienced Microsoft Excel user. “Price is important, but you shouldn’t be overly led by it,” he says. “It’s also important to make sure you are comparing apples with apples on price. “One supplier might include everything in the price whereas another doesn’t and there will be additional costs for things like training and support.” Suppliers generally advise against doing a trial because of the time and effort involved. Neville Briggs, managing director of CFC Solutions, says: “Organising a short-term trial is probably not advisable because the actual implementation of the software is time consuming relative to the results that are likely to be achieved – training has to take place, software installed, data transferred – but it is certainly possible.” When looking at a system it’s important to find out how easy and quick it is to input data accurately as well as how easy it is to get data out of the system. Sowerby says that while a supplier might have great reporting tool it’s no good if it’s difficult to input the data in the first place. Consider the cost of training – many software providers operate a ‘train the trainer’ approach whereby key members of staff are trained and they then pass on their knowledge to other staff. Another important consideration is software updates. Fleet management software is constantly becoming more complex, but how long will an upgrade take to implement? Consider how often updates will be necessary, and what the process will consist of.

WHAT IS THE ALTERNATIVE? While fleet management software may reduce admin and improve fleet efficiency, it might be overkill for some SMEs. In this case, a simple spreadsheet or Microsoft Access database might be able to do everything the manager of a small fleet would require. However, spreadsheets have their limitations. For a start, they can only be accessed by one person at at a time, causing issues if more than one individual is in charge of managing your fleet. They can also be easily manipulated. Whereas software simply collates information and delivers it in an appropriate format, employees can manipulate data in spreadsheets for reports, and data entry can be inconsistent. As your SME expands, it’s likely that turning to fleet management software can save time and reduce costs. However, take the time to ensure the software you opt for includes everything you require, and have a clear run-down of costs associated with it. www.mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 17

■ COST MANAGEMENT

THE ROLE OF DE A LERS

THE BETTER THE RELATIONSHIP, THE BETTER THE SERVICE Get the relationship with your local franchised dealer right and beneﬁt from reduced front-end costs and less vehicle downtime

40%

of Peugeot’s dealer network have secured Business Centre status

standards Peugeot dealers must achieve to become a Business Centre

“

A franchised dealer can often be the default choice for sourcing and servicing vehicles

By John Maslen he relationship with a vehicle dealer is one of the most important factors for a growing business when it comes to its transport needs. Get the relationship right and the benefits can range from reduced front-end costs through to lower vehicle downtime and better staff morale. However, get it wrong and the business could suffer through unexpected or increased costs, higher downtime and an increase in the amount of management time spent dealing with problems or finding alternative suppliers, such as independent garages. For a small company, a franchised dealer can often be the default choice for sourcing and servicing vehicles, as there should be the minimum of fuss and the best levels of service when dealing direct with a specific brand. That’s certainly the view of manufacturers, such as BMW, who invest heavily in training their dealer networks to service the specific needs of local businesses. BMW was named best dealer network by the UK’s biggest leasing companies, the FN50 – arguably the toughest customers for any dealer. Matt Bristow, general manager for corporate sales at BMW, says it is his job to make sure that business users are always happy. He adds: “Every dealer has an expert whose job it is to look after business users and we support that with an extensive programme. “We provide a consistent presence and keep prices as stable as we possibly can.” Although the focus is on avoiding mistakes and problems, there is also an extensive back-up service with the underlying emphasis on getting vehicles back on the road. But across the industry that isn’t always the case. A survey by Sewells Research & Insight carried out among small business owners reveals their key concerns focus on service levels and costs. One small business respondent comments: “Labour rates seem to rocket as soon as the garage finds out it is a company car in for servicing.” Overall, complaints cover a wide range of manufacturers, ranging from volume and new generation to premium. Cases include vehicles being damaged while in the workshop, vehicles being off the road for unacceptably long periods and bills being issued for work that hasn’t been done. One company executive says: “I was charged for a

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replacement cam cover gasket when it was clear that the retaining bolts had never been removed.” There will always be sub-standard retailers out there, but there are hundreds more who are doing a fantastic job and deserve to be recognised by companies for their services. Dealers argue that the problem is, in many cases, they aren’t. Payment for company business is often late and at rates that are barely proﬁtable – and that’s the real reason why the relationship between retailers and businesses can break down. Retailers cannot afford to ignore SMEs; but conversely, SMEs cannot afford to ignore the needs of retailers. Therefore, the answer lies in a close working relationship between customer and dealer to ensure that both parties can enjoy a beneﬁcial relationship. Dealers need to feel they are valued as a supplier enough to make every effort to keep the business as a customer and, in turn, the customer can manage the relationship with clear KPIs and recognition that service has a value beyond the basic price charged for vehicles and parts.

DIRECT DEALER SERVICES BEST FOR SMES Experts seem to agree, with one consultant viewing direct dealer services as the best option for small ﬁrms, if they are managed properly. He says: “A local dealer would bend over backwards to keep a small business customer mobile. It is just a case of having a discussion and working together.” Keith Cook, who runs the vehicles at Computacenter, takes a hands-on approach to managing the relationship with his dealer partners, rather than leaving it to an external supplier such as a leasing company. He says: “We nominate our own dealers. I will go through and do a formal dealer review, which measures them on a number of factors. “I am looking for dealers who are ﬂexible, innovative and who will work with us to achieve common goals. They take the time to do things right. I’m not somebody who wants to meet with a dealer or a manufacturer once a week, once a month. If they come in two times a year I’m happy. “What I need to know is that if I’ve got an issue they will resolve it, because cars will go wrong, things do happen.” In the van market, a close relationship with dealer suppliers can be even more important to maximise vehicle on-road time and minimise costs.

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Retailers cannot afford to ignore SMEs; conversely, SMEs cannot afford to ignore the needs of retailers

Aftersales support is a key differentiating factor that needs focus, according to fleet operators, with the fleet manager of one family run business saying: “If something goes wrong and it is left wrong, you never go near those people again. “But if you are wowed by how they have turned it into a positive, you stay with them. “You can remember the time they mucked you about or let you down, but you forget times when something happened and they put it right. “As a family firm, you wear many hats and you don’t have time to research new vans, so you tend to be loyal if they work hard to put things right and keep you on the road.”

MAINTAIN HIGH STANDARDS For dealers who expect to serve companies of any size it is vital that they employ the right staff and maintain high standards to show they can be trusted to deliver when it matters. A spokesman for Norton Way Corporate Sales, which supplies vehicles to local businesses and major leasing companies, sums up the attitude dealers need to take. He says: “While very proud to be a franchised dealership group we do in fact think, plan and act as a ﬂeet service provider. “Our aim is to fully satisfy our customers 100% of the time.” Manufacturers are also trying to ensure they meet the needs of small businesses with a series of specialist

programmes aimed at improving fleet service standards across their dealer network. Among them is Peugeot, which has launched a new business sales standards programme with more than 40% of its franchised dealer network securing Business Centre status. To become an approved Peugeot business centre, dealers must achieve more than 35 standards across business areas, including ensuring staff are trained to achieve high levels of expertise and providing a wide selection of demonstration and display vehicles. From an aftersales perspective, Peugeot business centre dealers need specialist advisors and highly-trained technicians familiar with the brand’s latest technological features. They also need to ensure customer mobility by providing a replacement vehicle, with collection and delivery services. Every dealer will be subject to regular reviews in order to retain their Peugeot business centre status. The programme commenced at the beginning of 2014 and there are now 88 dealers across the UK recognised as Peugeot Business Centres. Patrick McGillycuddy, Škoda head of fleet, believes having the right team is critical to success and particularly in the fleet sector. “We also work closely with our retail partners so that they use the same approach when recruiting for Škoda’s Business Centres,” he says. “This is to ensure that local business development managers have the skills and personality attributes that allow them to serve the specific needs of their customers effectively.”

■ 5 Q U E S T I O NS TO A SK D E A L ER S 1 Do you have a business centre?

2 What fleet specific qualifications/training does my fleet contact have? 3 What does the contact know about company car taxation and other issues such as capital allowances? 4 Can you discuss vehicle funding options? 5 Do you have opening hours that suit my business demands?

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■ COST MANAGEMENT

INSUR ANCE

10 WAYS TO LOWER INSURANCE PREMIUMS Fleet insurance costs are not beyond your control. Here are the key things to consider when looking to reduce your bills

WHAT IS YOUR FLEET’S CLAIMS PERFORMANCE?

Ask your insurer for your authenticated claims experience. This is a standard industry form which gives information on your ﬂeet’s performance, usually over the past three years. It will detail the amount of exposure you’ve had in a year, based on the number of vehicles you run, as well as showing the number of claims you’ve had (your claims frequency) and the insurance costs which have been paid and those which are still outstanding. You need this form in order to get quotes from alternative insurance providers. “Asking for this form means your existing insurers will be thinking ‘we’d better not be complacent here because they’ve asked for their claims experience’,” says Len Benson. “Even if you get the form and do nothing with it you might get a better quote from your existing insurer at renewal simply because you’ve asked for your claims experience.”

en Benson is the chairman of ACFO’s London West region and associate director at commercial insurance broker Peter Lole & Co. Here he outlines the key criteria you need to consider in all aspects of your vehicle operation to help reduce your insurance premium. There scope for savings is wide if you examine every facet of running the vehicles, as well as asking questions of your vehicle insurer. Following these steps could result in lower premiums.

HAS YOUR INSURER MADE A PROFIT?

££

“When you’re negotiating, you need to know whether you’re in a position of strength or weakness,” says Len Benson. “If you think your insurer has made a proﬁt and then you sit down with them and they say that they haven’t it takes away a lot of your ammunition.” Many companies make the mistake of looking at the premium they have paid and assume that if the claims costs are a bit less then their insurer has made a proﬁt. But that doesn’t take into account insurance premium tax or the insurers’ other costs. “Insurers have a break-even point, which used to be circa 72.5% but it is variable between insurers,” Benson explains. “They have to pay salaries, premises costs, lighting, heating etc. If they pay more then £72.50 for every £100 of premium (before insurance premium tax), then they’ve probably lost money.”

HAVE YOU GOT THE RIGHT TYPE OF COVER?

For most SMEs, fully comprehensive rather than third party only is best. This is because 80-85% of ﬂeet insurance claims are third party and there isn’t a big price difference between comprehensive cover and third party only according to Len Benson. Consider whether you need windscreen cover. Look at the number of windscreen claims you have made and the cost of those claims. If you asked your insurer to exclude windscreen cover how much would you save? Instead, of using the insurer’s nominated repairer, could you strike a deal with a local ﬁrm to get lower costs?

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WHERE ARE YOUR VEHICLES BASED?

Generally, it is better if your vehicles are not in a city centre. If you have a London address but your drivers are not based there, make sure you inform your insurer. “Say, ‘OK we’re in London W1 but here are our 20 drivers and their postcodes’,” says Len Benson. “If you’re based in the country and all your drivers live in the local city, don’t mention it to your insurers. Be selective. Although your insurer might come back and say ‘you’re based in the middle of nowhere, where does everyone live?’ Then you’ve got to tell them.”

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WHAT DRIVER PROFILE DO YOU HAVE?

Although legislation now stops gender discrimination, female drivers do tend to have smaller claims, according to Len Benson. “If you have more female drivers, the lower your costs will be and that will be reﬂected in your premium,” he says. Also consider the types of convictions that your drivers have. Are they errors of judgement or does the driver appear to like taking risks? What age are your drivers? “If everyone in your organisation is over 35, tell your insurers and see if they will do you an ‘any driver over 35’ policy’ rather than the industry standard which is ‘any driver over 25’,” says Benson. If the driver’s spouse is entitled to drive the vehicle, make sure they fall into the right age group. If you employ someone under 35 after you have taken out your insurance policy, make sure you inform your insurers. You can still have an ‘any driver over 35’ policy but name the drivers that fall outside it.

If you have a number of executive vehicles, such as Aston Martins, along with more mundane vehicles, think about where to place them in the schedule of vehicles. Companies often make the mistake of listing executive vehicles at the top, in order of value. “The insurer might start looking at the list and think, ‘no, not for me’,” says Len Benson. But putting high value vehicles at the bottom of the list isn’t a good move either as it can be a nasty surprise for insurers when they have gone through a list of otherwise mundane vehicles. Benson’s advice is to put the expensive vehicles in the list at random.

ARE YOUR VEHICLES FITTED WITH TELEMATICS?

Some insurers will offer an upfront discount on the basis of the entire fleet being fitted with driver behaviour telematics. Others will reduce your premium once you have telematics data which shows driver behaviour is improving and your accident rates have lowered. For high value vehicles or certain brands, your insurer may insist on a tracking device being fitted.

WHAT TYPE OF VEHICLES DO YOU RUN?

DO YOU HAVE A DRIVER TRAINING PROGRAMME? “Driving training impresses insurers,” says Len Benson. “If your drivers have undergone training or you have an ongoing programme then tell your insurers about it.”

SPEED

DO YOU HAVE STRICT POLICIES AND PROCEDURES?

You need to have policies regarding the use of the vehicle, as well as post-accident procedures. Every accident should be investigated, whether the driver is at fault or not, according to Len Benson. Drivers shouldn’t be able to have an accident and simply laugh it off. Benson says: “With any accident, you need to ask the driver ‘how did this happen?’ It engenders a culture that accidents are unacceptable. This is a valuable company asset and an accident is money off the bottom line.” He also advises strict procedures for commercial vehicles, as these are often the source of a lot of claims. Specify that there should be no passengers other than fellow employees otherwise it is extra exposure.

DO YOU HAVE THE RIGHT COMPANY CULTURE? A culture of safety is the most important factor in lowering insurance premiums, according to Len Benson. Having the right policies and procedures in place, carrying out risk assessments and driver training, as well as ﬁtting telematics to monitor and manage driver behaviour should all help to create a safety culture. The right culture should be driven from the top with the managing director or chief executive driving the policy but employees should also be encouraged to share their ideas about improving the safety of the ﬂeet. www.mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 21

■ COST MANAGEMENT

LE A SING BROKERS AND FLEE T MANAGEMENT COMPANIES

THE VALUE OF OUTSOURCING Leasing brokers and fleet management companies have different roles in reducing the cost of running company cars and vans By Sarah Tooze rom marketing to accounting and everything in between, the modern-day SME will demand a lot of skills from those that run it. Outsourcing key services to brokers and fleet management companies can add real value – they can help you develop a fleet which keeps on top of current market issues without taking hours out of your day.

BROKERS Vehicle brokers are playing an increasingly prominent role as they become ever-more professional and demand for their services rises. Today’s leading vehicle brokers not only source vehicles at competitive prices, they often also provide a comprehensive range of fleet management services. Martin Brown, managing director of Glasgow-based Fleet Alliance, which manages more than 14,000 vehicles, believes the role of brokers will continue to grow. “Brokers provide customers with cost-efficient routes to market because of competitive tendering,” Brown says. “They are the customers’ champion.” The reality is that most purchasing decisions, especially among SMEs, are driven by cost. It’s only natural to simply go for the broker that offers vehicles for the cheapest prices. This is based on the assumption that all brokers offer widely the same service. The broker spectrum, however, is wide and varied. So if you want to find the best broker, cost should not be your only consideration. Of course, competitive pricing should be on the list, but if you want to choose a broker that can do the most for your company while still being affordable, there needs to be other boxes to tick. To weed out the ‘bedroom brokers’ it’s important to find out how established your broker is. How stable are its roots? This can be easily found through a few simple questions, such as ‘how long have you been trading?’ or ‘what experience do your owners have?’ Asking how many employees a broker has or if it has a business property is worth doing – they’re unlikely to have a back office of hundreds, but it’s never a good sign if your broker’s team consists solely of the person you’re speaking with working from their home. From there, understanding how seriously they take their business is a good step. What sort of marketing activity do they undertake? Are they accredited by the British Vehicle Rental and Leasing Association (BVRLA)? Who are their funding partners? These kind of questions can give you a good sense of the quality of the broker – the best will have their finger on the pulse of all the industry issues which means, by extension, so will you. 22 ❚ Summer 2014 ❚ www.mydrivingbusiness.co.uk

■ W H Y F L EE T S O P ER ATO R S USE B RO K ER S 1. Consistently competitive pricing and market knowledge. 2. Contact consistency without relying on call centres. 3. Personal service. 4. Additional credit lines – a consistent package across multiple funders with the client providing credit information once.

132

Brokers are members of the BVRLA

Further brokers are estimated to meet the BVRLA’s membership criteria

The fact that 132 brokers are members of the BVRLA with a further 50 estimated to meet its membership criteria is evidence of the broker sector’s growing professionalism and acceptance within ﬂeets. Speaking ahead of the BVRLA’s ﬁrst leasing broker lunch last year, Paul Huxford, of PHVC Vehicle Management, who chairs the BVRLA leasing broker committee, said that the past 10 years had been a very successful partnership. “We have worked really hard to raise the standards of professionalism – embracing the BVRLA code of conduct and conciliation service and sharing best practice within the industry,” he says. “Meanwhile, the BVRLA has provided us with a huge amount of information and advice, ensuring that we are prepared for any upcoming legislative challenges and giving us valuable extra credibility with both funders and manufacturers. “I believe that BVRLA leasing brokers are now really beginning to reap the rewards from this relationship.” Mike Moylan, a founding member of the BVRLA leasing broker committee and managing director of

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broker network. Those plans are built on investment in IT and providing best practice workshops and training for broker employees. Fiona Hall, sales director of Lex Autolease’s SME division, with responsibility for the broker network, says: “There are more than five million SMEs in the UK. We are all playing in the same market because we are all looking to win business with small fleets. But the marketplace is so large there is plenty of business to go at.” The broker market has emerged from the manufacturers’ historic inability to capture SME business via their franchised dealers in their local marketplace. Recently, they have started to address this issue, incentivising their retailers to win local fleet business by offering attractive deals via their vehicle finance and leasing arms. However, the price-based offering of some brokers could be undermined by the growth in online price comparison sites, such as Comparecontracthire.com and Comparemyfleet.com. They offer smaller fleets access to the cheapest deals from their panels of competing leasing supporters, although not all companies are willing to provide prices. For brokers, the decision to offer a broader range of services, including full-blown fleet management in some cases, creates a point of differentiation with the internet comparison sites. The question is whether SMEs want the additional services.

WHY WOULD A FLEET CHOOSE A VEHICLE BROKER OVER A LEASING COMPANY? Deritend Industries, which provides engineering asset management and repair solutions, has been a CBVC Vehicle Management client for more than 10 years. Initially, this was for the supply of vehicles only, but Deritend has now outsourced management of its fleet of 50 company cars and 50 vans to CBVC’s service. Deritend financial director Stuart Smith says: “We cannot justify having an internal fleet manager so followed up on a recommendation and now use CBVC as a one-stop shop. “As it has a variety of funders at their disposal, I believe it gets the best rates for us. We test the market from time to time, but believe we get a better deal by using CBVC, while also factoring in the specific fleet deals they are able to access through manufacturers. “From our viewpoint, it is a case of simplicity and easy management and means we don’t have to spend time accessing the market every time we require a vehicle.”

“

It is only natural to go to the broker which offers the lowest prices

”

FLEET MANAGEMENT COMPANIES Using one supplier for your fleet may not deliver the best deal unless the relationship is tightly managed. Shopping around for the best leasing deals can take a lot of time, and also will require a great deal of management and administration as your fleet increases in size. Although a broker takes some of this hassle away, brokers might not be able to deal with the paperwork and day-to-day running of your fleet once they’ve found you a good deal. One way of benefiting from the competitive nature of a multi-supply arrangement without the downside of managing a number of suppliers is to use a fleet management company to do the work for you. Companies offering this service include CLM, Fleet Alliance and Fleet Logistics. Using a fleet management company means you use one computer system, one invoice and one point of contact, making running a small fleet a lot easier. Although brokers concentrate on finding the cheapest deal, fleet management companies can

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Croydon Contract Leasing, which has been in business for more than 20 years, believes personal service is what differentiates his business from major contract hire and leasing companies. “We take the time to get to know our customers and give them the personal service they want,” he says. Moylan arranges funding with partners that include Lex Autolease, LeasePlan and Arval. Lex Autolease, Britain’s largest contract hire and leasing company, has 100 brokers, with more than 32,000 company cars and vans funded via the network. Its target market via brokers is SMEs with fewer than 30 vehicles – the average ﬂeet size is 2.5 vehicles – but customers range from businesses with just a single car to those with more than 100. Steve Cocks, head of broker sales at Lex Autolease and a member of the BVRLA leasing broker committee, says: “As the broker network has evolved and become more consultative, greater inroads are being made into the larger ﬂeets.” The SME market is a key growth area for Lex Autolease as it targets double-digit year-on-year growth through its

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■ COST MANAGEMENT

LE ASING BROKERS AND FLEET MANAGEMENT COMPANIES

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provide other services such as daily rental. Fleet Logistics chief regional officer – Europe North Stuart Donnelly firmly believes the fleet sector will increasingly seek tailored solutions with no one size fitting all. And he claims one of those solutions to which companies with larger numbers of vehicles are turning to is multi-bidding leasing contracts. “There is a wide disparity between leasing prices. Fleets are no longer able to get best value by working with one leasing company,” Donnelly says. “Our model creates competition, typically of three leasing companies, which will reduce a fleet’s total cost of ownership by 12%.” Funding is not the only component of a multi-supply strategy: accident management, rental, fuel cards, telematics, logistics, glass and maintenance management all benefit from open competition in terms of price and service. Opt to deal with one leasing provider on an ‘all-in’ contract and you are tied to their third-party supply partner, which might not be appropriate for your fleet. “In the past, a single leasing company gave ease of administration – one supply chain, one point of contact for drivers,” says Donnelly. “That takes away the hassle but the cost is not the lowest. Now the driver for change is reducing headcount, cutting cost and creating value for the business. “Companies are recognising that a one-size-fitsall philosophy might remove complexity, but it loses sharpness of pricing competition, control of cost and the ability to choose the right third-party suppliers.” Some companies have reported saving more than £50 a month per car after switching from a solus arrangement following price increases from their previous leasing supplier. This can result in savings of £12,000 a year for companies with 20 cars on their fleet. This is done by tendering each car order to a number of your preferred leasing companies, opting for the best

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■ F L EE T M A N AG EM EN T CO M PA NIE S Pros ■ One point of contact for drivers and ﬂeet operator ■ Consolidated report ■ One invoice ■ One computer system ■ Each vehicle or a batch of vehicles can be tendered to a number of suppliers ■ Cost savings ■ Consultancy service ■ Can manage additional service for you such as daily rental and accident management ■ May offer invoice validation Cons ■ Management fee ■ Drivers still need to know the leasing company they use

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Fleets are no longer able to get best value by working with one leasing company

price – meaning you can save money without shopping around. As well as shopping around for new leasing deals, fleet management companies can provide dedicated account managers who do full reviews of costs regularly, making suggestions for further savings. Consolidated reports for your entire fleet can also make it easier to spot rogue invoices, with fleet management companies interrogating every penny that gets spent. With multi-supply you could end up with different reports in different formats making them difficult to compare costs, but fleet management companies will combine these into one report. Drivers could also benefit from a single driver helpline – however, they may have to remember which leasing company they are with when they get through to the helpline. Another way in which fleet management companies could reduce admin is by managing the grey fleet (employees using their own vehicles for business journeys). SMEs often encourage employees to use their own vehicles, but what risks does this bring?

Advertisement feature

Are you running a cost-effective van ﬂeet? Tips for getting the most value from your light commercial vehicles

f your business is considering investing in vans – or already runs one or more light commercial vehicles – then read on. You’ll ﬁnd out if you’re doing everything you can to keep your van costs to a minimum. Last year alone, more than 327,000 new vans and trucks were registered in the UK – an increase of 14.7% from 2012 and one of many indicators of economic recovery. If you’re choosing a new light commercial vehicle for your business, start by applying the ‘90% rule’ when deciding on capacity and engine size. What will be the load and likely journeys for the vast majority of the time? You’ll pay more for a vehicle big enough to carry 4m lengths, but there’s no need if you only transport them twice a year. For infrequent requirements it’s better to opt for short-term hire. A larger engine size is also more economical for motorway mileage rather than lots of shorter trips. So what will your vehicle be used for 90% of the time? Another practical consideration is the interior. A bulkhead behind the driver and passenger can save lives in an emergency stop situation as items from the rear are dislodged. Being hit by a full can of cola or a tool at 30mph can easily kill… Payload (how much weight the van is

capable of carrying) is an important issue. Most manufacturers advertise their payload with a 90% filled fuel tank and fluids in the engine – but they don’t factor in the driver or a passenger. Every item or person added to the van reduces the payload, so to stay legal you also need to include people plus the weight of any racking, roof system or storage fitted – plus the stock, tools or goods being carried. Payload is too risky to ignore as the vehicle inspectorate is cracking down more than ever. An overloaded van is easy to spot because it sits lower at the back in ‘powerboat’ mode. If a van is overloaded it can be stopped and prevented from moving until the load is reduced to a safe level. Fines can be up to £5,000, plus the cost of downtime for your business. Encourage your drivers to use a public weighbridge if they are not sure of their payload. It’s cost-effective, takes only a few

To ﬁnd out more, contact Lombard Vehicle Solutions on 0117 908 6490 or visit www.lombardvehiclesolutions.co.uk Lombard Vehicle Solutions is the contract hire and ﬂeet management product provided by ALD Automotive. Registered address: Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA.

minutes and puts everyone’s mind at rest. Also ensure that roof loads are secured properly and not excessive as many vans have less than 100kg roof loading capacity including the weight of the roof rack. Importantly, your drivers must understand that what they carry in the company vehicle is their responsibility, not the company’s – a common misconception. If they believe they are overloaded or not able to secure their load properly, they must refuse to drive the vehicle. You can save money on fuel too with simple, daily checks to identify damage or defects, tyre pressure and levels – all of which can impact fuel economy. Fitting speed limiters is also useful. One ﬁnal thought. An overloaded, badlymaintained van bearing your company name is advertising your business – but perhaps not as well as a professionally presented, proudly-driven one would do.

■ C ARS AND VANS

COOPER D HATCHBACK

MINI

All-new model is bigger and more efﬁcient, but still retains the fun factor

Emissions for the Mini range start from 89g/km

NEED TO KNOW

COSTS

■ Fuel economy of 80.7mpg; CO2 emissions of 92g/km ■ Mini retains ‘point-and-go’ handling of predecessors ■ Five-door version expected to go on sale

P11D price £16,395 BIK tax band 14% Annual BIK tax (20%) £459 Class 1A NIC: £317 Annual VED £0 RV (4yr/80k) £6,250/38% Fuel cost (ppm) 7.72 AFR (ppm) 12 Running cost (4yr/80k) 24.23ppm

By Simon Harris t took until the third incarnation of BMW’s Mini that the company felt confident enough to abandon the over-sized speedometer that had become a focal point of the dashboard. Now Mini feels it has the freedom to make any changes it wants as long as the car retains the hyped ‘go-kart feel’ of the original car, as well as its premium car quality (endowed only in the BMW years). The new Mini is just that. Nothing has been retained from its predecessor and while petrol variants don’t quite duck under 100g/km, the diesel variants available certainly do. We drove the new 1.5-litre three-cylinder diesel Cooper D with 116hp (4hp up on the previous 1.6-litre Cooper D). It has CO2 emissions of 92g/km (auto: 98g/km), putting it one benefit-in-kind tax band lower than its predecessor. However, the Mini One D, coming a little later and using a less powerful version of the same engine, has emissions of 89g/km, putting it among the best diesel cars on sale for CO2. The Mini is responsive and refined. It has also retained its point-and-go feel, while ride comfort is improved over previous generations. BMW’s Minis have often been criticised for not being small, and the latest model has grown again, with an extra 28mm in the wheelbase and a wider track. At 3,821mm long (Cooper S: 3,850mm) it’s still shorter than a Renault Clio, Vauxhall Corsa, Ford Fiesta, Volkswagen Polo and the Audi A1. The longer wheelbase liberates extra legroom in the rear and travelling in the back no longer seems quite the hardship it was in its predecessors.

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SPEC Power (hp)/ Torque (lb-ft) 116/199 CO2 (g/km) 92 Top speed (mph) 127 Fuel efﬁciency (mpg) 80.7 0-62mph (sec) 9.2

KEY RIVAL Audi A1 1.6 TDI Sport 3dr P11D price £16,960 BIK tax band 15% Annual BIK tax (20%) £509 Class 1A NIC £351 Annual VED £0 RV (4yr/80k) £5,775/34% Fuel cost (ppm) 8.38 AFR (ppm) 12 Running cost (4yr/80k) 26.47ppm Running cost data supplied by KeeResources (4yr/80k)

The centrally-mounted speedometer is replaced by a multi-function display The boot is also much larger than before. At 211 litres it’s still smaller than average for the sector (Fiesta has 276 litres), but it no longer feels a compromise as an everyday car. Since the second incarnation of the BMW Mini in 2007, Audi has launched the A1, setting new benchmarks for interior quality. Mini has responded; materials feel more upmarket and there is an improved finish. Moving the speedometer to a pod mounted on the steering column means it’s closer to the driver’s eye-line. In the space taken by the speedometer in previous versions is a new multi-function display. Mini Connected or Mini Connected XL is also available in conjunction with the Mini Visual Boost Radio and the MiniNavigation System. It offers integration of smartphones, enabling the use of internet-based services in the areas of infotainment and communication. Mini Connected XL includes the Journey Mate function for networked navigation, with real-time traffic information. Mini has yet to confirm the first five-door version of the hatchback, but spy photographs have circulated. The new three-door hatchback will have greater appeal for businesses and drivers than its predecessor, but many more will be awaiting the arrival of the five-door version with interest.

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C-Class is the most aerodynamic car in the premium sector

MERCEDES-BENZ C220

CDI BLUETEC SPORT AUTO

Does the new C-Class set new standards in the best premium car sector? NEED TO KNOW

COSTS

■ New C-Class goes on sale in June ■ Improved fuel economy and CO2 emissions ■ Packed with latest safety technology

P11D price £32,805 BIK tax band 17% Annual BIK tax (20%) £1,115 Class 1A NIC £770 Annual VED £0 then £30 RV (4yr/80K) £10,850/33% Fuel cost (ppm) n/a AFR (ppm) 17 Running cost (4yr/80K) n/a

By Stephen Briers he quality and performance jump from C-Class to E-Class always seemed to be much greater than rivals like BMW’s 3 Series/5 Series and Audi’s A4/A6. As a result, the C-Class always lagged behind its premium car competition. Mercedes-Benz has now closed that gap with the new C-Class. Packed with the latest technology and offering a responsive, yet efﬁcient driving experience, the C-Class also closes the gap to the sector-leading 3 Series. The question is, does it overtake the BMW? A range of diesel and petrol models will be available at launch, but of most interest to businesses will be the C220 Bluetec, a 2.1-litre 170hp diesel offering CO2 emissions of 103g/km and fuel economy of 70.6mpg, and the C250 Bluetec, which increases the C220’s power output to 204hp with 109g/km and 65.7mpg. The C220 has a reﬁned engine offering plenty of power,

SPEC Power (hp)/torque (lb-ft) 170/295 CO2 (g/km) 110 Top speed (mph) 145 0-62mph (sec) 7.4 Fuel efﬁciency (mpg) 64.2

KEY RIVAL BMW 320d Sport auto Business Model P11D price: £32,260 BIK tax band 19% Annual BIK tax (20%) £1,226 Class 1A NIC £770 Annual VED £0 RV (4yr/80k) £8,570/27% Fuel cost (ppm) 9.92 AFR (ppm) 14 Running cost (4yr/80k) 44.08ppm

Interior quality is superb

Running cost data supplied by KeeResources (4yr/80k)

rapid reaction and ample mid-range torque. It is effortless to drive and will be more than acceptable for the majority of drivers. Sat on the standard steel suspension, the C-Class provides a controlled ride, occasionally harsh over severely pitted roads but not uncomfortably so. Handling is excellent with well-weighted steering offering enough resistance without being tiring to drive. Switch to the Airmatic air suspension, an £895 option on Sport and AMG Line models, and the experience is elevated to a whole new level. Mercedes-Benz claims Airmatic could account for almost half of total sales; barring a residual value uplift, we expect businesses to choose the cheaper steel suspension option and save a few pounds. The manufacturer’s design team has created the most aerodynamic car in the sector. That’s important because it not only helps to reduce fuel consumption (assisted by a 100kg reduction in weight thanks to the greater use of aluminium), it also reduces wind noise which means the car is exceptionally quiet at motorway speeds. The new C-Class is packed with the latest safety technology, much of it standard – including a reversing camera and Collision Prevention Assist Plus which applies the brakes to mitigate an accident at speeds of up to 125mph. Is the C-Class the new benchmark in the premium car sector? On the majority of the business matrix considerations, the answer is yes (albeit qualified subject to receiving the full running costs data). It is the most upmarket car in the sector; interior quality is superb, standard equipment levels are exceptional and, on a like-for-like basis, the P11D price is firmly in its favour. The 3 Series isn’t knocked from its perch as the ultimate driver’s car, but that is not a business’s priority. When it comes to a solid, comfortable, safe and efficient drive, the C-Class is the winner. www.mydrivingbusiness.co.uk ❚ Summer 2014 ❚ 27

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