Business First Family Business, Accounting, Finance, Investing, Marketing And Management
When you need to invest in a fleet of cars for your business, there’s a lot of factors you need to consider. Without adequate planning for your asset acquisition strategy, there are a lot of risks and mistakes you could end up falling victim to. As it’s obviously a large investment, it pays to do your research. Here, we’ll look at some of the biggest risks and mistakes to avoid when investing in a fleet of cars to ensure your business doesn’t make a loss.
Not Focusing On Safety Features
When investing in a fleet, one of the main factors you should look into is safety features. An important part of fleet risk management is ensuring your drivers are safe on the road. So, you’re going to want to invest in vehicles which have the latest safety features incorporated into them. For example, business owners, who are starting a courier company, need to ensure the safety of employees who are on the road regularly.
Just some of the safety features to consider include autonomous emergency braking, front cameras and lane departure warning technology. Features such as these can really reduce the risks and in the long-term, improve your bottom line.
Failing To Carry Out Vehicle Checks
Before you buy a fleet of cars for your business, it’s imperative to carry out numerous checks; especially if you’re buying them second-hand.
First and foremost, you should have a valuation carried out to ensure you’re paying the right price. Companies such as Cap HPI, use an extensive database to provide real-time valuations on both single vehicles and bulk vehicles.
You should also consider running an HPI check, to ensure the fleet you’re interested in is worth the investment. HPI checks can cover everything from vehicle mileage, to MOT history and whether there’s any outstanding finance on the vehicles. So, you can avoid any potentially nasty surprises by carrying out these checks.
Not Taking Out The Right Insurance
Once you have the fleet up and running, it’s crucial to ensure you have the right insurance. Depending on your finance or lease, you might be able to bundle these payments. Failing to take out adequate cover could prove disastrous and even put your entire business at risk if an accident were to happen.
Having specialty fleet insurance is the best option as it makes it much simpler to manage your policy if you have more than two vehicles. You also have the option to allow any qualified driver to use the vehicle, rather than just one driver. Taking your time to compare the different options available will ensure you invest in the best insurance policy to fit your fleet.
Buying From A Standard Dealership
While it is certainly possible to purchase a fleet from a standard dealership, it’s worth seeking one out which specializes in fleets. That way, you know they have the experience and it can save a lot of time when it comes to actually making a purchase. In a standard dealership, you’ll often find that the sales people need to double check things with management, potentially really slowing down the process.
So, always buy from specialist dealership to save time while ensuring you’re also getting the best level of service.
Not Investing In Fleet Management Software
When you run a busy fleet, there are a lot of potential risks involved. This means, you really need to be on top of your fleet management. With so much data to contend with, it’s highly recommended you invest in fleet management software. This will help you to keep things organized, spot potential issues quickly and ensure you are running your fleet more efficiently.
As you can see, there are a lot of risks and mistakes you can make when investing in a fleet. However, by following the advice above, you’ll successfully be able to avoid some of the most common risks, enabling you to focus solely on running your business.
