Why Are Company Cars Always Diesel?
For new or aspiring entrepreneurs, the idea of commercial fleet management may seem like a complex entity. While it does demand careful thought and consideration, however, there is no reason why investing in a commercial fleet and managing it in a cost-effective manner cannot be relatively straightforward. It can also be profitable too, especially true when you consider that the British economy is currently the strongest of all developed nations.
3 Reasons Why Companies Always Invest in Diesel Vehicles
When it comes to establishing a commercial fleet, you will find that diesel vehicles offer a far more viable and cost-effective option that petrol alternatives. Investing in a diesel fleet is a standard practice among most business owners, and there are a number of compelling reasons for this. These include: –
- Fuel Economy and Cost
As a general rule, diesel vehicles are far more fuel efficient that petrol alternatives. They therefore dramatically reduce the cost of maintaining and operating your fleet throughout the course of the year, which in turn can translate into a higher return on your initial investment. It is also worth noting that petrol prices are likely to rise disproportionately to diesel costs in the future, as governments and private sector companies continue to drive more eco-friendly practices.
- Lower Tax and Insurance Costs
On a similar note, the improved performance and favourable CO2 levels of diesel vehicles also translate into reduced car tax liability and insurance premiums. Although this is only a general rule and the cost of these products will vary for each individual model and specification, companies can usually secure genuine financial savings by creating a diesel fleet and insuring vehicles under the banner of a single policy. These savings can be boosted by partnering with a viable firm such as Hitachi Capital Vehicle Solutions, as firms of this nature tend to offer competitive and customisable policies.
- The Residual Value of Petrol and Diesel Cars
If you have a small fleet and intend to buy each individual vehicle, you will need to consider future value and any potential return on your investment. While almost all vehicles depreciate in value over time, the residual value of diesel cars tends to remain more consistent than petrol alternatives over the course of several years. This can make a significant financial difference over time, as an inflated resale value can allow you to maximise your assets and boost profitability.