FinanceAcar.co.uk

Five Ways A Company Can Save Money On Transport Costs

Blog post   •   Feb 07, 2011 14:07 GMT

Whilst the UK may officially be out of the global recession, many companies around the country are still struggling in the wake of the devastation that the recession left on the economy.

With many companies looking to cut costs, if you’re in this boat, one of the first points you should look at is your company’s transport options.

Whether you’re a small business or a global corporation, looking at what money you pay for transport costs and taking the following five points into consideration could see you save a substantial amount of money – money that can be put back into the company to help it prosper.

1. Stop paying general petrol contributions – this might not be something that’s particularly popular across the board with your employees, but if you stop paying for petrol contributions for anything but the necessary journeys during work hours, you’ll find that the company’s finances will look much more positive than they had done.

2. Ask employees to put money towards their company car – if you offer your employees company cars, there’s a good chance that you do so at no cost to them.

Rather than cancel the company cars altogether, consider implementing a process whereby your employees make a contribution towards their car.

Whilst some will no doubt be unwilling to pay this, you’ll find that for those who use the company car for personal use, too, they won’t have any problem paying as it makes more financial sense to a pay a contribution towards a company car than it does to buy their own, personal car.

3. Use car lease agreements – should you have a large fleet of cars for use by your employees, you’re already likely to be using car lease agreements.

If you’re not already using them, however, you really need to look at this as a priority, as utilizing a car lease means that you don’t actually own the cars and you lease them from a finance company instead. As a business you avoid all VAT if the vehicle is used exclusively for business purposes. The best thing about leasing is that you do not have to pay for them in full and hand them back once the agreement is up.

4. Charge for onsite parking – if your company is located within a large town or city and you offer your employees free onsite parking, you could instantly increase your income by charging for car parking.

It doesn’t need to be as expensive as general car parks, but even if you offered it at a 50 percent discount to other car parks, it’s still money that you hadn’t been receiving previously.

5. Have a company coach – one of the processes a lot of local governments are putting into place who have employees that work between several sites is to have a company coach or minibus.

Travelling back and forth between the sites on a regular basis, it does mean that you have to pay out for the cost of the vehicle itself and a driver, but if you weigh up the cost of a company coach against fuel costs and company cars, there’s a good chance it could work out a better option financially.