cost savings case study
TRANSCRIPT
SAVE OVER
£1000P E R V E H I C L E P E R A N N U M
C A S E S T U D Y
H O W T O
This case study provides you with a complete breakdown of the real costs associated with running company vehicles &
the time & money you wil l save when it comes to sourcing & running vehicles through DFC’s vehicle
Management Programme.
By Uel Butler, Chief Executive DFC Belfast
2 DFC Belfast
Every business is keen toREDUCE COSTS
This becomes especially important when you manage company vehicles. Whether you have one vehicle or a whole fleet, it requires a significant investment to manage,
finance and maintain.
Therefore keeping costs to a minimum is a key focus.
This case study provides you with a complete breakdown of the ‘real costs’ associated with running your own vehicles and the significant time and money you can save if you
were to invest in DFC’s Vehicle Management Programme.
O V E R V I E W
The true cost ofRUNNING COMPANY
VEHICLES
L E T S G E T S T A R T E D
3DFC Belfast
The following costs are all based on a single vehicle if you manage it yourself.
Typical costs associated with running a company vehicle falls into three categories;
1Administration
2
Downtime 3
Vehicle disposal
Administration & processing for servicing and tyre invoices at £35 per vehicle£35 x 2 = £70
Administration & processing of Road Fund License at £35 per vehicle£35 x 1 = £35
Administration Costs
1
4 DFC Belfast
Driver & company estimated downtime of 4 hours per year attending vehicles at £150 per hour£150 x 4 hours = £600
One hour of driver and company downtime per year for incidentals i.e. puncture repairs, mechanical & warran-ty defects and recalls on vehicle at £150 per hour£150 x 1 hour = £150
Driver & Company Downtime
2
Driver and company downtime is one of the biggest financial drains on businesses today, yet many still fail to recognise how much this is actually costing them.
Fuel costs of £15 to and from servicing and tyre changes£15 x 2 = £30
5DFC Belfast
Disposal Costs
3
Refurbishment & valeting including downtime£300 x 1 = £300
Advertising/phone calls£100 x 1 = £100
Downtime for demonstrations£300 x 1 = £300
Administration (vehicle forms & invoicing)£100 x 1 = £100
6 DFC Belfast
The Whole Life Costs For Running
One Vehicle
4
Administration Costs£105
Company & Driver Downtime£780
Vehicle Disposal Costs£800
Total£1,685
7DFC Belfast
Saving time & money withDFC'S
VEHICLE MANAGEMENT PROGRAMME
The costs that we previously looked at were based on a vehicle that was purchased and managed by a single individual. We are now going to look at the savings
associated with leasing that same vehicle. Significant savings can be achieved in two main areas. Firstly in the sourcing of the vehicle and secondly in the running of the
vehicle.
W H A T ' S N E X T
Sourcing Your VehicleIf you were looking at purchasing a vehicle with a list price of £25,000 the deposit required based at 10% of the value would be £2,500.
If you were leasing the same vehicle the industry norm would be 3 initial payments which counts as you first month’s rental. On a vehicle of this value this would equate to approximately £900 (subject to mileage).
As you can see the capital that you need to raise would be significantly less and you could be saving up to £1,600 on this alone. This will have a significant positive impact on your company cash flow.
Running Your VehicleIn the section regarding the true costs of running your vehicle we highlighted the costs associated with administration, driver and company downtime and vehicle disposal.
On the next page are the anticipated savings if you were to lease the vehicle through our Vehicle Management programme.
8 DFC Belfast
Administration
Driver & Company downtime
Note: Through our in house maintenance programme we can eliminate or greatly reduce the costs surrounding administration and driver and company downtime.
All aspects of vehicle maintenance are covered including: Routine servicing Tyre and brake replacements Warranty issues Manufacturer recalls
We will also pick your vehicle up from your place of work, take it to the nearest servicing outlet and return it back to you, ensuring minimal disruption to your day to day operations.
Saving Time & Money With DFC’s Vehicle
Management Programme
The costs that we previously looked at were based on a vehicle that was purchased and managed by a single
individual. We are now going to look at the savings associated with leasing that same vehicle. Significant
savings can be achieved in two main areas. Firstly in the sourcing of the vehicle and secondly in the running of
the vehicle.
Sourcing Your Vehicle:
If you were looking at purchasing a vehicle with a list price of £25,000 the deposit required based at 10% of the
value would be £2,500. If you were leasing the same vehicle the industry norm would be 3 initial payments
which counts as you first month’s rental. On a vehicle of this value this would equate to approximately £900
(subject to mileage).
As you can see the capital that you need to raise would be significantly less and you could be saving up to
£1,600 on this alone. This will have a significant positive impact on your company cash flow.
Running Your Vehicle:
In the section regarding the true costs of running your vehicle we highlighted the costs associated with
administration, driver and company downtime and vehicle disposal. Below are the anticipated savings if you
were to lease the vehicle through our Vehicle Management programme.
Administration:
Description Actual Cost Anticipated Saving % Saving
Administration &
Processing For Servicing
and tyre invoices
£70 £70 100%
Administration &
Processing of Road Fund
License
£35 £35 100%
Driver & Company downtime:
Description Actual Cost Anticipated Saving % Saving
Downtime For Attending
Vehicles
£600 £300 50%
Downtime For
Incidentals
£150 £75 50%
Fuel Costs To and From
Servicing and Tyre
Changes
£30 £30 100%
Note: Through our in house maintenance programme we can eliminate or greatly reduce the costs surrounding
administration and driver and company downtime.
Saving Time & Money With DFC’s Vehicle
Management Programme
The costs that we previously looked at were based on a vehicle that was purchased and managed by a single
individual. We are now going to look at the savings associated with leasing that same vehicle. Significant
savings can be achieved in two main areas. Firstly in the sourcing of the vehicle and secondly in the running of
the vehicle.
Sourcing Your Vehicle:
If you were looking at purchasing a vehicle with a list price of £25,000 the deposit required based at 10% of the
value would be £2,500. If you were leasing the same vehicle the industry norm would be 3 initial payments
which counts as you first month’s rental. On a vehicle of this value this would equate to approximately £900
(subject to mileage).
As you can see the capital that you need to raise would be significantly less and you could be saving up to
£1,600 on this alone. This will have a significant positive impact on your company cash flow.
Running Your Vehicle:
In the section regarding the true costs of running your vehicle we highlighted the costs associated with
administration, driver and company downtime and vehicle disposal. Below are the anticipated savings if you
were to lease the vehicle through our Vehicle Management programme.
Administration:
Description Actual Cost Anticipated Saving % Saving
Administration &
Processing For Servicing
and tyre invoices
£70 £70 100%
Administration &
Processing of Road Fund
License
£35 £35 100%
Driver & Company downtime:
Description Actual Cost Anticipated Saving % Saving
Downtime For Attending
Vehicles
£600 £300 50%
Downtime For
Incidentals
£150 £75 50%
Fuel Costs To and From
Servicing and Tyre
Changes
£30 £30 100%
Note: Through our in house maintenance programme we can eliminate or greatly reduce the costs surrounding
administration and driver and company downtime.
9DFC Belfast
Vehicle Disposal Costs
This service is useful for companies and individuals who own their vehicles outright. We can help eradicate the costs and time and hassle when it comes to selling your vehicle
privately.
We can dispose of your current vehicle, releasing capital for you to use towards your new vehicle.
If you were to purchase a vehicle and manage
it yourself the total costs associated with
keeping it roadworthy are approximately
£1,685
If you were to lease that same vehicle using our Vehicle Management
Programme you would save approximately
£1,310
All aspects of vehicle maintenance are covered including;
Routine servicing,
Tyre and brake replacements,
Warranty issues
Manufacturer recalls
We will also pick your vehicle up from your place of work, take it to the nearest servicing outlet and return it
back to you, ensuring minimal disruption to your day to day operation.
Vehicle Disposal Costs:
Description Actual Cost Anticipated Saving % Saving
Refurbishment &
Valeting Including
Downtime
£300 £300 100%
Advertising £100 £100 100%
Downtime For
Demonstrations
£300 £300 100%
Administration (Vehicle
Forms & Invoicing)
£100 £100 100%
This service is useful for companies and individuals who own their vehicle outright. We can help eradicate the
costs and time and hassle when it comes to selling your vehicle privately. We can dispose of your current
vehicle, releasing capital for you to use towards your new vehicle.
(Niall can you really emphasise the 2 boxes above)
If you were to purchase a vehicle and manage it yourself the total costs associated with keeping it
roadworthy are approximately £1,685.
If you were to lease that same vehicle using our Vehicle Management Programme you would save
approximately £1,310
10 DFC Belfast
Bonus savings withDFC/RAC TELEMATICS
T H E R E ’ S M O R E
Through our Vehicle Management Programme we can provide you with Business Contract Hire, Personal Contract Hire, Vehicle Maintenance, Fleet Management and
Vehicle Disposal.
But what really sets us apart is this.........
Through our exclusive partnership with the RAC in Northern Ireland, every vehicle that we lease comes with RAC Telematics, Breakdown Cover and Accident Management as
standard.
11DFC Belfast
Underused people capacity
Behaviours leading to poor fuel consumption
Over-capacity in the fleet Unnecessary travel
Lack of timely communication to customers
Personal use of company vehicles and reporting
Late attendance Pressure to get more jobs from the same num-ber of vehicles
Poor driving styles leading to shorter life span of vehicles and increased servicing costs
Pressure to get more jobs from the same number of vehicles
(Note: Could possibly use symbols beside the above points from the attached power point presentation)
Areas For Saving Included With DFC Competitors Savings
Driver/Job Allocation X £4.04 p/m
Reduced Idling Time X £10.08 p/m
Improved Fuel Economy X £10.11 p/m
Managing Personal Use X £10.68 p/m
Reduced Administration Duties X £11.50 p/m
Improved Productivity X £39.34 p/m
Total: £85.75 p/m
Potential Areas For Saving Included With DFC Competitors Potential Savings
Accident Management/Live GPS
(Based on 1 accident per year)
X £15.62 p/m
Breakdown Recovery/Live GPS
(Based on 1 breakdown per year)
X £6.25 p/m
Total: £21.87 p/m
With our exclusive RAC partnership and on board Telematics system, we can show you proven methods to
overcome these problems, allowing customers to start making savings in the following areas:
These savings have all been calculated on a survey of over 55,000 vehicles across the UK and Ireland. Below
you will find real life problems from some of the customers that were surveyed and the savings above reflect
how these problems were overcome. Our customers said:
Note: Please see attached examples on slides (speech bubble under our customers said)
However, there are also additional features that will also help improve both driver and company efficiency.
Additional Features Included With DFC Competitors
Driver Behaviour, i.e. speeding X
Collision Alerts X
Live Vehicle Tracking X
Privacy Option X
Live Vehicle Health Alerts X
HMRC Mileage Compliance X
Full Audit Trail X
With our exclusive RAC partnership and on board Telematics system, we can show you proven methods to overcome these problems, allowing customers to start making
savings in the following areas:
These savings have all been calculated on a survey of over 55,000 vehicles across the UK and Ireland. Below you will find real life problems from some of the customers that
were surveyed and the savings above reflect how these problems were overcome.
Our customers said:
We spend hours reconciling manual mileage sheets, have no
checks and can’t verify. Everything is manual and
time consuming.
12 DFC Belfast
RAC Breakdown Cover &
Accident Management
As previously mentioned as well as Telematics all leased vehicles with DFC will also include RAC Breakdown
Cover and Accident Management as standard. This holistic approach to Vehicle Management will enable all
customers to operate their vehicles much more efficiently and effectively, whilst also relieving any stress or
worries relating to breakdowns or accidents.
RAC Breakdown Recovery:
Through our partnership with the RAC, we can provide you with first class breakdown cover so you are back on
the road as quickly as possible. Our lines our open 24/7, 365 days a year. 1 number and more importantly 1 call
is all you will ever need.
Vehicle being off the road are costing UK businesses on average £200 per year. With 4 out of 5 vehicles being
fixed at the roadside when can help reduce downtime and avoid any further costs. We also repair the vehicle
on average 34 minutes at the roadside preventing further delays.
RAC Accident Management:
Additional Features Included With DFC Competitors
Driver Behaviour, i.e. speeding X
Collision Alerts X
Live Vehicle Tracking X
Privacy Option X
Live Vehicle Health Alerts X
HMRC Mileage Compliance X
Full Audit Trail X
However, there are also additional features that will also help improve both driver and company efficiency.
13DFC Belfast
RAC breakdown cover andACCIDENT MANAGEMENT
As previously mentioned as well as Telematics all leased vehicles with DFC will also include RAC Breakdown Cover and Accident Management as standard. This holistic approach to Vehicle Management will enable all customers to operate their vehicles
much more efficiently and effectively, whilst also relieving any stress or worries relating to breakdowns or accidents.
A D D I T I O N A L S A V I N G S
RAC Breakdown RecoveryThrough our partnership with the RAC, we can provide you with first class breakdown cover so you are back on the road as quickly as possible. Our lines our open 24/7, 365 days a year. 1 number and more importantly 1 call is all you will ever need.
Vehicle being off the road are costing UK businesses on average £200 per year. With 4 out of 5 vehicles being fixed at the roadside when can help reduce downtime and avoid any further costs. We also repair the vehicle on average 34 minutes at the roadside preventing further delays.
RAC Accident ManagementWe know how important it is to get you back on the road as quick as possible that is why our bespoke solutions are tailored to your fleet and individual requirements. We offer complete handling from your first call through to completion.
We offer a single point of contact from roadside assistance, first notification of loss (FNOL) through to delivery of your required vehicle.
We also offer a vehicle should one be required.
14 DFC Belfast
SUMMARY
I hope you found this case both informative and worthwhile. At DFC our focus is not only
to provide you with a total vehicle solution but to also deliver an unrivalled level of customer
service.
We understand that businesses today do not have the time to effectively manage the running of their vehicles,
this is why it is important to work with a respected, proactive Vehicle Management Company who works
with you over the entire contract period, saving you time, money and hassle.
We work tirelessly to ensure the safety of you and your drivers throughout the duration of your contract and help save you time as well as money so that your
business can continue to run smoothly.
T O C O N C L U D E
15DFC Belfast
For over 25 years we have supplied, funded and managed vehicles for the business community in the UK and Ireland.
We know meeting up with us can save you time and minimize your vehicle costs.
The free consultation we are offering involves a detailed cost analysis, specific to your business, to find out whether or not
Business Contract Hire really is the best option for you.
During the consultation we will discuss your budget, what your current circumstances are, and find out what exactly you are
looking for. You will learn about vehicle “whole life costs” in more detail and we will examine these with reference to the specific
circumstances of your business.
Whether or not Business Contract Hire is the best option for you, we will explain how you can cut costs, save time and increase your business bottom line profit by making efficiencies in your
vehicle management practices.
If you are a business owner please claim your free consultation by calling us on 028 9073 4222. We are confident we can find
a solution that will result in both cost and time savings for your business. We look forward to meeting up, to get to know you and
find out more about how we can help your business.
Book yourFREE CONSULTATION
WITH US
CALL 028 9073 4222