The fleet manager should get together with his colleagues in finance and HR and make sure that the business needs can be met.

After months of number crunching, negotiation and arguments the new fleet policy is born. The company will make major savings. You send out letters advising drivers and departments of the new car scheme. All the company car drivers will be delighted and toast your health at every opportunity. A job well done. If only life was this simple.

Cars are emotive, and even if they don’t admit it most drivers act like it’s Christmas if they get the car they want. Is a cash alternative quite so seductive? Most company car drivers would put doing tax calculations slightly behind root canal fillings in their list of favourite pastimes. You could be Santa in disguise, but unless you are prepared to help the drivers do the sums and dispel the urban myths you’d better not walk alone in the car park at night.

The key to a successful fleet policy and a contented workforce is communication. Unfortunately many good car schemes have failed because the drivers have simply not understood what they are being offered.

Why spend a fortune in time and fees in planning the most effective fleet policy if no one understands it. It is a sad fact but most employees do not believe every thing their employer tells them. How do you overcome these hurdles? Often we calculate cash allowances based on paying the maximum mileage rates. If the driver has the right circumstances the cash required to keep him neutral can often be minimal. Imagine the conversation “Joe you can either have a 318 BMW or £800 a year.” Time to avoid the car park.

In order to make Joe feel good help him understand just what you are offering. Use third party software such as our own Driver Choice, or break the figures down for him, but remember company car drivers usually don’t want to be accountants.

The method you choose for communication depends on the demographics and sophistication of your company. It may be by letter, Intranet or even face to face meetings, but the golden rule has to be keep it simple.

Before turning the light out and saying goodnight to the fleet policy for another decade or so, it may be worthwhile to consider when the next review should be carried out. Over the next few years manufacturers will strive to make cars as green and tax efficient as possible. Should you reduce your cash allowances in line? If the accounting rules change and all leased cars go on the balance sheet should you review your funding? What other changes are out there that you may miss?

To run your fleet as effectively as possible requires you keeping on top of legislation, vehicle trends and employment regulations, and a host of other issues on an on-going basis. Reading magazines such as Fleetworld and checking the news section of www.cartax.co.uk will help make your fleet not only successful now, but also well into the future.

David Rawlings
Senior Manager
Deloitte & Touche