What Is Grey Fleet & How Does It Work?
When it comes to managing business travel, many companies are familiar with the usual suspects of regular fleet: company vehicles, leased cars, and daily rentals.
What is Fleet Management? A Complete Guide to Optimising Your Fleet Operations
Fleet management is essential for businesses that rely on vehicles to run efficiently. It involves overseeing the acquisition, maintenance, and operation of vehicles to ensure they are used cost-effectively and safely.
What is Electric Vehicle Fleet Management?
The drive towards sustainability has catalysed a significant transformation in fleet management, with Electric Vehicle (EV) fleet management at its core.
How To Create A Fleet Management Strategy?
In an era where operational efficiency directly correlates with competitive advantage, honing a fleet strategy is essential for any business aiming to stay current and stay ahead.
Mercia Fleet Management lowers insurance costs through AI-enhanced driver profiling
Mercia Fleet Management (Mercia), the fleet management division of EV salary sacrifice specialist Fleet Evolution, successfully lowers insurance costs by leveraging AI-enhanced driver profiling and accident damage assessment.
Why Do Hidden Fees Exist?
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts Why do Hidden Fees Exist? The Contract Hire conundrum, we already know, we’ve all been there; enticed by a radio advert or an email. Getting excited about the prospect of a brand-new car for a very low cost, only to have our hopes and dreams shattered by the fine print. It’s not that you’re against a fair deal, who is? It’s just the thought of putting a million pounds down, plus your firstborn, against a car isn’t in the spirit of a transparent deal. So, why do hidden fees exist and why do companies do it? First, this is Largely Consumer Driven Just like supermarkets advertising items at 99p instead of £1, a low rental has a huge difference in attracting customers. When it’s done right, it also gives the customer huge flexibility. When it’s done wrong though, and the advance payments aren’t clear, it can be frustrating at best, and lose sales at worst. To add insult to injury, some will even charge doc fees, an admin fee to deal with them. Ryanair could learn a thing or two from these companies! Normally, this type of deal would be represented with advance payments first, then follow up payments after. So, a 36-month agreement would be specified as 9×35. If the payment is £200, that’s £1,800 upfront, followed by 35 payments of £200. It generally works out the same as paying 3 in advance. With 3 in advance, the monthly rental is slightly higher. Sometimes it can be cheaper as you’re lowering the risk for the lease company. If you default, they already have a hefty payment to offset any depreciation and costs. It’s Useful to Have Money, Especially to Cover Hidden Fees Let’s say you get some extra cash from selling an older car. You may want to use this before you spend it, while also lowering your monthly payments. For a company, again, if you have the cash but want to keep your regular outgoings slim, it can be very useful. If you have good credit, funders will be all too happy to give you a quote with fewer payments upfront. Maybe even 1 month, but the monthly cost will increase. So, whether you pay 9 months upfront or just 1, you can expect to pay the same over the full term. It’s just what suits you, the funder, and your financial position. Reach Out! Let’s make fleet management a little less puzzling. Whether you’re just getting started or looking to take your operations to the next level, we’d love to hear what’s on your mind and help you piece together the perfect fleet strategy. FAQs Here’s some of the most frequently asked fleet management questions. Ask A Question What are hidden fees in fleet management? Hidden fees are unexpected charges that may arise in fleet agreements, covering areas like excess mileage, early termination, maintenance oversights, or administrative costs. These can significantly impact the overall cost of running a fleet if not clearly understood upfront. How can I avoid hidden fees in my fleet contracts? To avoid hidden fees, carefully review contract terms, clarify maintenance and mileage limits, and work with a transparent fleet management partner. Regular audits and proactive fleet planning can also help minimize unexpected costs. Why do some providers include hidden fees? Hidden fees are often used to recover costs not covered in standard pricing or to offer initially lower, more attractive rates. Understanding these fees can help businesses make more informed decisions when selecting a fleet partner.