Mileage projections now key to fleet choices, Fleetcheck says
20 April 2021
Author: Sean Keywood
Predicting future mileage when writing new company car leases is going to be a key issue for fleets as post-pandemic travel patterns begin to emerge, according to software company Fleetcheck.
It said fleets generally believed company car mileages would remain lower than they were before Covid-19 - but were unsure by exactly how much.
Managing director Peter Golding said that most company cars had covered a fraction of their usual mileage over the past year, and that with the growth of videoconferencing as an alternative, it was generally thought that most would not return to the distances they covered before.
He said: "Very few organisations are talking about getting rid of their fleets altogether because they recognise the contribution that they make to their business - while fewer trips might be made, those that are still being made remain essential or important.
"However, there are questions to be answered and the biggest of these is based around 'rightmileaging' - ensuring that employers take out leases that match future usage.
"Obviously, the difference between a 20,000 mile a year lease and a 12,000 mile one is substantial, especially extrapolated across a whole business, so it is important to get this right."
Peter said that Fleetcheck was recommending to its user base that it took a proactive approach to this situation.
"Our view is that businesses shouldn't wait to see what develops because the outcomes are likely to be haphazard, with some drivers choosing to return to their old mileage levels and others being more considered.
"We'd like to see fleets introduce guidance around when journeys should be undertaken instead of leaving things up to employees. Certainly, it doesn't seem unreasonable to suggest, for example, that monthly client meetings should not all take place face-to-face and should instead use a combination of video conferencing and in-person meetings.
"We expect to see more discussion about this in the coming months and certainly we're helping some of our clients with their rightmileaging requirements, looking at how they should manage drivers and business needs."