What’s Going on with Semiconductors?
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts What’s Going on with Semiconductors? A year ago, only specialist engineers had heard of semiconductors. Today, it’s an everyday headline. While few of us actually know what they do, most of us know that semiconductors are causing huge delays, in everything from phones to cars to vans. What is going on with semiconductors and where do we go from here? A semiconductor is the building block on which circuits themselves are built. Without them, we can’t make laptops, cars, vans, planes, phones, smart speakers, remote controls, the list goes on! To put it in context, before the crisis, semiconductor manufacturers made 150 per person on the planet, in just one year! The shortage has been anticipated for some time. Around this time last year, millions of optimistic children had some ambitious demands on their letter to Santa. And my son was no exception. The PS5 was a demand that Santa simply couldn’t meet; even the Christmas lights needed semiconductors! Besides Santa’s failure, my household budget meant my son would not have had a PS5 anyway, even if we had no semiconductor shortage. He has since claimed my PS4. As a dad of 3, I have no time to play it anymore, so he is welcome to it. If Santa can’t keep up with demand, how can we? Especially when one of the largest semiconductor plants in the world closed in March following a huge fire! We’re approaching that time of year again! The kids are demanding PS5’s and businesses are demanding vehicles, there’s no end in sight. Or is there? Well, this year again, Santa won’t be much help. His elves are hardworking, but the productivity increase is too great for them alone! China and Europe are wading into this market and bringing huge production to bear. Although, this may not be in time for Christmas. Next summer though, I think semiconductors will slip right back into the headline wilderness. 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 Why are semiconductors important for the automotive industry? Semiconductors are essential for modern vehicles, powering critical systems like engine control units, advanced driver assistance systems (ADAS), infotainment, and electric vehicle batteries. Without them, the technology that makes cars safer, more efficient, and smarter wouldn’t be possible. Why is there a global semiconductor shortage? The shortage has been driven by a combination of factors, including pandemic-related supply chain disruptions, increased demand for electronics, geopolitical tensions, and the slow, complex nature of semiconductor manufacturing. This has significantly impacted vehicle production worldwide. How is the semiconductor shortage affecting fleet operators? Fleet operators are facing longer vehicle lead times, higher prices, and reduced availability of certain models. Many are adapting by extending lease terms, focusing on maintenance to extend vehicle life, or exploring alternative mobility solutions.
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.
How to do Vehicle Checks?
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts How to Do Vehicle Checks When you look at operating a vehicle fleet, you need to devise or indeed revisit the business case. Too many companies still have the same strategy they had 10-15 years ago simply because it’s always been done that way. Though, as companies and transport evolve, so should your vehicle policy. Daily Checks Tyres What you’re looking for in the tyre checks is cuts and bulges, tyre pressure and deflation, and tread wear. However, not all of these checks need to be carried out daily. When checking for cuts and bulges on your tyres, you should run your finger around the top and sides of each tyre. If you find any, you should get your tyres replaced ASAP. Driving on tyres with a bulge will leave you at risk of having a blowout, and cuts may even be illegal. If your tyres have deflated, you will typically get a warning of some sort from your vehicle; whether that’s a warning light, warning sound, or a pop-up on the dash. You can check your tyre pressure with a pressure gauge by removing the tyre valve dust cap and gently pushing the gauge down onto the stem. Tyre pressure should typically be around 30psi; if your pressure is below this, use a suitable pump, to reinflate them. Check every tyre as they won’t all have the same psi and remember to put the dust cap back on after checking! Windscreen Check the windscreen for any chips or cracks just by scanning it before you set off. If you find a chip or crack, you should take care of it sooner than later. Your windscreens integrity lessens when it is damaged; whilst not all chips turn into cracks, a lot of them do. Even a change in temperature could be the difference between a chip, a crack, or even a smashed screen. Driving with a crack can also be considered a motoring offence, so it’s something to keep on top of. Wipers Checking your wipers work is simple, you’ll do it every day if you live in England. Before you set off on your journey, just switch your wipers on as you would any other day. If they are smooth, quiet, and clear your screen with ease, there’s no need to panic. However, if you find that your wipers are leaving streaks and making a scraping noise, it may be time to change them. This easy check just ensures that your vision is not impaired during adverse weather. Lights To check your lights, just simply switch the headlights on and walk around your vehicle. You should also check that your fog lights work, front and back. While these lights don’t help you, they do help other drivers in foggy conditions. Ensuring your headlights work gives you greater visibility in the dark, especially as it gets darker earlier in the winter months. Looking to Solve Your Fleet Puzzle? That’s what we’re here for. Let us know what you need and we’ll find the missing piece. Get in Touch Weekly Checks Tyre Pressure If your car has tyre pressure sensors, you will be alerted when your pressures are low. However, this is also a good time to check your tyres for a slow puncture or any cuts/bulges. When else should you check your tyre pressure: If your car is pulling to one side If the steering wheel is vibrating If you feel your handling is not as smooth as usual Deflation or low tyre pressure can negatively affect fuel efficiency, and more importantly, braking distance. This is why it is so important to check your tyres regularly and thoroughly. Tread Wear To check the tread on your tyres you can purchase a tyre tread depth gauge, or even use a 20p coin. Simply slot the coin in the main grooves of the tyre, check it in a few separate places around the tyre as parts may have worn more than others. If the “TWENTY PENCE” writing disappears, you have enough tread. It is recommended you change your tyres when they reach 3mm tread. However, 1.6mm is the legal minimum tread depth around the tyre. It is also recommended that this check should be carried out every other week. Monthly Checks Fluids There are a number of fluids in your car and you should check them often and fill them when necessary. For most of the fluids, simply unscrew the top and fill up when necessary. It is advised to keep them topped up regularly. However, it’s a little different checking the engine oil. Engine Oil Remove the dipstick and wipe clean. Then, place the dipstick back in the oil tank and remove it again. The dipstick will have some ridges indicating where the oil level should be. You will see the oil on the dipstick, if it is under the recommended level, you should top it up accordingly. Need a quick guide on how to check your cars fluids? Seat Belts You should check all of the seatbelts in your vehicle often to ensure the safety of every passenger on board. To check the seatbelts, you will want to pull them out completely and check for cuts and frays. As well, you should check that the seatbelts are secure and clip in properly. Tug on the seatbelt to check that they don’t pull out of the buckle. The last thing anyone wants is a crash but sometimes they’re inescapable, so it’s better to be safe than sorry. Watch how to check your seat belts’ safety here. Grab Handles and Adaptations The purpose of grab handles is to allow ease when entering or exiting a vehicle. However, you may also use them when you’re in the car with one speedy driver. You can check your grab handles, or any adaptations of them, by simply grabbing them and putting some force onto them. If
How to Manage a Fleet for Non-Fleet Managers
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts Manaigng Your Fleet for Non-Fleet Managers Whether you’re in HR, finance, or part of an SME, we want to help you manage your fleet more effectively. We aim to provide a general overview of the basics of how to manage fleet for non-fleet managers. This paper has been written to help you to devise a fleet strategy for all types of employee needs. It is by no means exhaustive but should serve as a framework for those with little fleet experience; a framework you can follow to ensure success. At the end of this paper, you will find additional resources and contacts you may find useful. The typical company car costs around £8,000 a year to run. It is a cost second only to payroll for some companies. It is a cost that needs as strong a strategy. This paper is designed to help you ensure that you have a sound strategy, whether managed in house or externally. You are more likely to win the lottery than be jailed under the Corporate Manslaughter Bill, due to a Driving at Work incident. Though, this does not mean you should be complacent. The ‘teeth’ have always been in the Health and Safety at work legislation. Breach it, you could be in very hot water. Abide by it and you can actually save quite a lot of money! But with so much conflicting information, what do you need to do? Driving at work is one of the most dangerous things an employee can do. Under the legislation, whether they are using your car, their car, a horse, or a skateboard, you have an obligation to ensure both employee and vehicle are ‘fit for the purpose’. What is a Company Fleet The UK is one of the largest company fleet markets in the world and probably the best established. In essence, the “company fleet” is vehicles owned or leased by the company for employees to use to carry out their job. However, in the UK it is much more than that. In the 70s, employers used cars as a way to recruit talent, to overcome set pay rules imposed during hyperinflation. Since then, cars have increasingly been used as a recruitment and retention tool. One thing for sure is that the company fleet is a huge part of modern business. Huge potential benefits that go way beyond just transporting staff, but huge costs and even potential legal issues if you get the strategy wrong. Looking to Solve Your Fleet Puzzle? That’s what we’re here for. Let us know what you need and we’ll find the missing piece. Get in Touch The Differing Company and Employee Needs When you look at operating a vehicle fleet, you need to devise or indeed revisit the business case. Too many companies still have the same strategy they had 10 – 15 years ago simply because it’s always been done that way. Though, as companies and transport evolve, so should your vehicle policy. Job Need Most companies require company vehicles. However, how that is addressed should be tailored, not blanket. It normally depends on a whole raft of variables, but we’ll concentrate on the 2 main drivers: utilisation and purpose. Employee Need All employees need vehicles normally, even if they are just commuting. You may be surprised to know you can help with this. The best solution again depends on utilisation: No Work Use Consider introducing a salary sacrifice scheme. It costs you nothing and has huge benefits to recruitment, retention and for the environment. Nominal Work Use For occasional work use, you may be better served with: A pool car fleet: spare cars you allocate as needed Hire cars: companies like us can arrange this for you Worst case: letting employees use their own car The latter can be expensive for you and the employee. It is jam-packed with duty of care issues, see the Grey Fleet section on the website for more info. Moving Equipment If you need to move equipment, it could be goods or equipment with people, you have to choose appropriate vehicles. However, you don’t always need to have permanent vehicles. If vehicles are likely to be used for more than 8 days a month, we’d always suggest you buy or lease. Travelling less than this? Look at hire vehicles, you’d be amazed how even specialised vehicles can be sourced cost-effectively. High Mileage Essential Users: Anyone covering more than 10,000 business miles a year should be in a company car. The car should be “fit for the purpose” so lumbar support, adequate room, and sat nav will be required. Other considerations: These include the compromise of work and own use. Some employees need 7-seaters. Is this practical for company use? 3-door vehicles? Will this be problematic if collecting customers? Should you set a maximum CO2 or minimum MPG on the vehicles? There are many, many considerations. Funding Your Fleet: What Are Your Options? Choosing the right way to fund your fleet can make a big difference to your business’s cash flow and flexibility. From outright purchase for full control to contract hire for low upfront costs, and finance leases for ownership with flexibility, each option has its pros and cons. You might even find a blend of approaches works best for you. Find Out More About Funding Options Here Constructing a Policy When you look at vehicle policies, car policies especially, you’ll be amazed by how political things can become. You could be forgiven at times for thinking it’s a poisoned chalice. Usually, the people designing the policy are not eligible for cars. The negativity those eligible can understandably frustrate. However, take into account the genuine needs of all stakeholders, employees, employer, and customers. Then, a sensible solution can often be reached with all but the most petulant drivers. You can’t please all of the people all of the time, but
Top Tips for Funding your Fleet
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts Top Tips for Funding Your Fleet When it comes to funding your fleet, you’ve got more options than ever before. The right choice depends on your financial position, vehicle usage patterns, and long-term goals. Here’s a straightforward guide to help you decide. 1. Outright Purchase: Owning the Asset For businesses with strong cash reserves, buying vehicles outright can be an attractive option. This approach means you own the asset from day one, providing full control and flexibility over its use. It also allows you to benefit from potential tax advantages, particularly if you invest in low CO2 vehicles that can be written down over shorter periods. However, owning a vehicle means tying up significant capital, and you’ll bear the full depreciation risk – cars lose value quickly. Plus, the costs don’t stop at the purchase price. You’ll also need to cover ongoing maintenance, insurance, and road tax, all of which can add up over the vehicle’s lifetime. Pros: Full ownership and control Potential tax benefits for low-emission vehicles No finance charges Cons: High upfront cost Rapid depreciation Reduced financial flexibility 2. Hire Purchase and Finance Lease: Ownership, but with Flexibility For those who want to own their vehicles eventually but prefer to spread the cost, hire purchase and finance lease are excellent alternatives. These arrangements allow you to finance the purchase over time, with the option to own the vehicle at the end of the contract. With a Hire Purchase, you make fixed monthly payments until the vehicle is fully paid off. There’s no large final payment, but you’ll need to reflect the asset on your balance sheet from the start. A Finance Lease is similar but often includes a final “balloon” payment to take full ownership, giving you a bit more flexibility in managing cash flow. This option is particularly useful for specialist vehicles, like vans with bespoke racking, where customisation adds upfront cost that could be tricky to recover through traditional leases. Pros: Long-term ownership potential Greater control over vehicle use Flexibility to sell at any time Cons: Depreciation risk Balance sheet impact Ongoing maintenance responsibility 3. Contract Hire: Low Cost, Low Admin Contract hire is one of the most popular methods of fleet funding, and for good reason. It allows you to use the vehicle without ever owning it, typically bundling in maintenance and other running costs for a fixed monthly fee. This approach is particularly attractive if you want predictable expenses and minimal administrative hassle. However, because you never own the asset, you’ll need to return the vehicle at the end of the lease, potentially incurring costs if it’s damaged or has exceeded its agreed mileage. Pros: Low upfront cost Fixed monthly payments for easier budgeting No depreciation risk Cons: No ownership Potential for end-of-term penalties Mileage and condition restrictions Looking to Solve Your Fleet Puzzle? That’s what we’re here for. Let us know what you need and we’ll find the missing piece. Get in Touch 4. Short-Term Hire: Flexibility for Seasonal Needs For businesses with fluctuating vehicle needs, short-term hire can be a smart choice. Whether you need a van for a few days each month or a specialist vehicle for a project, this option provides maximum flexibility without long-term commitment. Short-term hire rates are typically higher on a daily basis, but the convenience and reduced long-term risk can outweigh the cost, especially if the hire includes insurance and maintenance. Pros: Maximum flexibility No long-term commitment Often includes insurance Cons: High daily rates Limited vehicle choice No asset ownership Choosing the Right Mix In reality, many companies benefit from a blend of these options, tailoring their fleet funding strategy to match their operational needs. This hybrid approach can help manage costs, reduce risk, and improve cash flow. Need help finding the perfect funding strategy for your fleet? Get in touch – we’d love to help you solve your fleet puzzle. 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 the main funding options for fleet vehicles? Fleet funding typically includes options like Contract Hire, Finance Lease, Hire Purchase, and Outright Purchase. Each has its own advantages depending on cash flow, tax considerations, and vehicle usage requirements. Choosing the right one can significantly impact your fleet’s cost efficiency and long-term financial health. How can I decide which funding option is best for my business? The best funding method depends on factors like your cash flow, tax strategy, expected mileage, and vehicle depreciation preferences. For example, Contract Hire offers fixed monthly payments and lower upfront costs, while Hire Purchase provides full ownership at the end. Consulting a fleet funding expert can help you align your choices with your financial goals. Are there tax benefits to specific fleet funding methods? Yes, some funding options provide tax benefits. For instance, Contract Hire allows you to reclaim up to 100% of the VAT (if your business is VAT registered) on maintenance and up to 50% on vehicle costs. Meanwhile, Finance Lease and Outright Purchase offer different capital allowance benefits. Understanding these can significantly reduce your overall fleet costs.
Duty of Care: The Great Risk Hijack!
About Author Andrew Leech I’ve been greening company fleets for over a decade. Ready to solve your fleet puzzle? View All Posts Duty of Care: The Great Risk Hijack Some things are real. For instance, COVID-19, and Global Warming. Other things are less so… like the Loch Ness Monster, sugar making kids hyper, or my memory of my rugby playing ability… The latter are in fact fictions! In part because it serves the interests of some, but crucially, not all. As is with Duty of Care! In 2007, the Government passed the Corporate Manslaughter Bill, which sanctions companies for breaching a duty of care. With it, all sorts of ancillary suppliers to the fleet industry went on a rampage of fiction and scaremongering; blinded by the pound notes in their pockets instead of yours. The Fact Remains Now as it Did Then You are more likely to win the lottery than be jailed under the Corporate Manslaughter Bill, due to a Driving at Work incident. Though, this does not mean you should be complacent. The ‘teeth’ have always been in the Health and Safety at work legislation. Breach it, you could be in very hot water. Abide by it and you can actually save quite a lot of money! But with so much conflicting information, what do you need to do? Driving at work is one of the most dangerous things an employee can do. Under the legislation, whether they are using your car, their car, a horse, or a skateboard, you have an obligation to ensure both employee and vehicle are ‘fit for the purpose’. What Does That Mean Well, it does not mean you need to buy electronic licence checking, training, or telematics. Although, some of those may be good ideas… The HSE dictate to meet your obligations. You must have a robust policy, a process to review and amend it, and an audit of its communication. You have to take reasonable steps, like checking someone has a licence. Insisting on them having more training than the law requires? No need. It could be useful for some, but not a legal requirement. 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 is the Duty of Care for fleet operators? Fleet operators have a legal and moral obligation to ensure their drivers’ safety and well-being. This includes maintaining roadworthy vehicles, providing driver training, conducting regular risk assessments, and promoting safe driving practices to reduce the likelihood of accidents and liability issues. Why is Duty of Care important for businesses with fleets? Meeting Duty of Care obligations not only protects your drivers but also reduces the risk of costly legal claims, improves fleet efficiency, and enhances your company’s reputation. Failing to comply can lead to significant financial penalties, legal action, and damage to your brand’s trust. How can businesses effectively manage their Duty of Care responsibilities? Effective Duty of Care management involves a combination of regular vehicle checks, driver training, risk assessments, real-time fleet monitoring, and a clear incident response plan. Partnering with a fleet management expert can help streamline this process and ensure ongoing compliance.