Ray Chapman Motors Fleet & Business

Fleet vehicles are cars or vans which have been leased or purchased by a company for their employees to use for business purposes, which they can pay for on a monthly basis – a bit like getting a car on finance.

There isn’t a set number of vehicles in a fleet.

Some businesses may require one vehicle, and some may need several hundred – it all depends on the number of employees in a business, and their individual requirements.

That said, the larger the fleet, the bigger the benefits.

As long as you can provide proof that you run or own a business, using appropriate forms of ID, then you will be able to qualify. The usual checks apply of course, just like when you go to lease or finance a car for personal use.

Fleet vehicles tend to be cheaper due to favourable terms that can be applied, as well as incentives and monetary rebates. For example, leasing companies can reclaim the VAT on the vehicle, so they can offer savings. It’s usually the case that the more vehicles you buy, the more you will save!

Fleet vehicles tend to be new, which means they’ll be under warranty, and have the latest fuel-efficient, low-emission engine, and the newest safety features as standard. Great for your peace of mind, and your employees’ safety.

This is dependent on a few factors like driver-specific parameters and the car’s Benefit in Kind value. Our team are on hand to give proper, honest advice.

This depends on the company car policy. The Company Car Driver will need to speak to their Insurance Company.

The Company Car Driver needs to speak to the Fleet Decision Maker to check if it’s compliant with their car policy. More information on this can be found under the Terms & Conditions of your agreement.

When the car is ready for handover, we will contact you to arrange collection or delivery.

Company cars come with Business direct prices that differ from private customer pricing. Our transparent pricing strategy means you can see these prices even before signing up.

One of the benefits of owning a fleet is that it saves a business purchasing vehicles outright every few years. It also means that every few years you can upgrade to a newer, more modern vehicle.

Leasing is also “off balance sheet”, which means liability doesn’t show on the company’s accounts.

If you’re looking for a fleet solution, we can help. We can offer you a dedicated account manager, as well as access to extended demonstrations. With great relationships with several leasing providers, we’re well placed to support you with any needs your business has.

There are multiple costs to consider in preparation for purchasing fleet vehicles. These are referred to as a vehicle’s ‘Whole Life Cost’ [WLC].

The factors to be considered in WLC are as follows:

• Vehicle Purchase Price

• Vehicle Registration Fee

• Vehicle Excise Duty (VED)

• Fuel Costs

• Service, maintenance and repairs

• Finance

• Insurance

• Residual Vehicle Value

• Class 1A National Insurance Contributions (NICs)

The world of vehicle fleets is fraught with jargon and acronyms, so we’ve put together a glossary of the ones you’ll see most often.

• P11D – A form sent to HMRC annually by employers stating any employee benefits such as a company car.

• P11D Value – The total value of the car including list price plus VAT, delivery charges and any optional extras such as sat nav.

• Benefits-in-Kind [BIKs] – BIKs are benefits that an employee receives that is not included in their salary. Often referred to as a ‘perk’.

• Class 1A National Insurance Contributions – Class 1A NICs are payable on any benefits-in-kind [BIKs]. They are paid by the employer.

• Plug-In Car Grant – A government grant available to subsidise the purchase of an electric vehicle.

• Residual Vehicle Value – Residual value, or resale value, is the predicted value of a vehicle in the future.

• Vehicle Excise Duty [VED] – An amount payable on all vehicles, which is calculated based on your car’s CO2

• Vehicle Purchase Price – The amount of money that was actually paid for the car, rather than the given list price.

• Vehicle Registration Fee – A one-off fee payable to DVLA when a vehicle is first registered.

• Whole Life Costs [WLC] – The costs associated with running a vehicle such as fuel costs, service and maintenance, which need to be considered before purchase.