Cutting costs with company cars

Peninsula Team

August 26 2011

At a time when businesses are conscious of tightening their belts, simple strategies can be implemented throughout your business structure to work towards this cost minimisation goal. Here at Peninsula we are always looking at ways of saving you and your business money.

The area of company cars and to what extent employees are responsible for their running and maintenance costs often confuses employers. When companies are aware of the need to tighten purse strings it is always good to get a concrete policy in place.

A few simple changes to the way in which staff and employers view their driving behaviour could impact dramatically on cost cutting.  It is important to encourage all your drivers to be as economical and efficient as possible with their fuel. Simply ensuring the wheel alignment of their car is correct, along with checking the air pressure in the tyre, will result in the engine being able to run more efficiently and use less fuel. Wheel misalignment alone could lead to a loss of 10% fuel efficiency which is easily avoidable.

Ask your employees to check that their vehicle's fuel cap is not broken or missing to further improve fuel efficiency. Their speed and driving style on the road also has a dramatic impact upon fuel consumption and consequently the vehicle running costs. By encouraging your staff to avoid unnecessary brake pedal use, jerks and halts associated with careless driving, you could reduce your fuel bill. It would also be advisable to suggest they keep the weight carried by their vehicles to a minimum.

Other solutions that are easy for you to implement include; switching off the car's engine if stood stationary for periods longer than 30 seconds and reducing the use of air-con in place of open windows as a far cheaper and more economical alternative.

These strategies help in 'driving' your business’s costs down without your need to spend much time or effort. They should also fit conveniently within each employee's daily vehicle use and address their general attitude towards their driving. This could prove more beneficial than changing the current routine for company car usage if employees complain about the new terms proposed.

If you have any suggestions then we would welcome them and be happy to publish them. Please email them to me at

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