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The start point for the best source of fleet information |
Arval UK picked up the innovation award in the 2013 BusinessCar Fleet Technology Awards - the Techies - for its online Rental Calculator.
The calculator, which Arval is good enough to house online for any operator to use, compares the journey cost for a rental car with usage of a grey fleet vehicle, and has adjustable parameters for trip mileage, reimbursement rate and fuel price, as well as the size of rental vehicle, reimbursement at actual cost or AFR, delivery address and number of rental days.
Built by Arval's consultancy team, the tool is one of a number it uses to help stimulate discussion and improvement in customers' fleet operations, and the Rental Calculator is designed to help cut risk as well as manage cost.
"Individuals have varying degrees of knowledge about what grey fleet is and what is supposed to be checked," Arval consultant Paul Marchment tells BusinessCar. "I get quite alarmed when someone just gives 45p per mile and leaves them to get on with it, because it's an education process."
The calculator, according to Arval, "explodes the myth" that rental is the more expensive option, and Marchment claims that 109 miles is the break-even point for rental versus drivers using their own vehicle and claiming the Government-set Approved Mileage Allowance Payment rate of 45p, depending on variables such as fuel price and number of rental days.
"A lot of our customers have offices that are 80-90 miles apart so it's a no-brainer - it saves money but reduces exposure to grey fleet, which was a priority for some customers.
"People think 45p per mile is cheap, but they don't put that out to 200 miles, plus some pay 5p per mile for passengers so you're up to 50p-55p and the cost grows that way," he continues. "Even if you break even or it's £5 more, then using a rental car is clearly the better option."
Marchment claims that's because of the extra risk involved in employees using their own vehicle, as well as the necessary admin trail, something Arval doesn't factor into the cost comparison because it's an "intangible" and some companies do better than others.
"Before we start any conversation about cost, we present why a company might be running a grey fleet - we don't scaremonger but highlight some of the risks and what they should be doing to run a grey fleet properly," continues Marchment. "It isn't wrong to run a grey fleet - it could be the best thing for the business; however, make sure you're doing X, Y, Z."
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