Only after going through the earlier steps should you consider the cost implications. Our companion Best Practice Guide 'Reducing your fleet costs' covers the main issues around fleet costs in more detail.

The main point that fleet operators need to take on board is the need to consider vehicle costs in whole life cost terms (i.e. including all cost components that arise from the vehicle use - including fuel and tax), not just the purchase price or lease rental. Do not be tempted to buy or lease a bigger-engined vehicle or special model because they are on run-out or a special manufacturer offer.

These seemingly attractive choices may lead to higher depreciation and whole life costs. Making the wrong decision at the outset can lead to higher whole life costs, which for a 50 car or van fleet may be as much as £250,000 additional spend over four years. Fleet funding is a major issue but just as important is your attitude to risk. If the option for fixing fleet costs for 3 or 4 years is attractive then seriously consider leasing vehicles rather than outright purchase. You may also wish to consider the value added services that leasing companies can provide to reduce the administrative burden.