Strategic Vehicle Acquisition: How to Find the Right Vehicles for your Fleet
Deciding which commercial vehicles are right for your business is one of fleet management’s biggest conundrums. With such a wide variety of makes, models, and specifications on the market, it can be a challenge to identify which vehicles best suit your operational and financial requirements.
sopp+sopp work with some of the UK’s best-known fleets to deliver fully-tailored, end-to-end accident and claims management solutions. Our service encompasses everything from incident reporting to high-quality commercial vehicle repair, with a focus on boosting fleets’ operational efficiency, and reducing the cost of incidents and claims.
Here, we speak with some of our key partners in the fleet & automotive industry - Holman, the fleet management specialists, and Gecko Risk, to gather 10 tips fleets should consider when purchasing new vehicles…
How do I know which vehicles are right for my fleet?
Deciding which vehicles are right for your fleet requires close analysis of your business needs, driver preferences, and the projected costs and operational implications of any new vehicles you’re considering.
This means harnessing all the available data to understand your fleet’s exact requirement, and compare the costs, benefits, and drawbacks of the different makes and models on the market.
Here are ten tips for choosing the right commercial vehicles for your fleet - including the data you need to use, the considerations you need to make, and how you approach roll-out of your new stock:
10 Tips for a Successful Fleet Vehicle Purchasing Strategy
1 - Understand how you intend to use your new vehicles
Before you start browsing the makes and models available, you need to understand exactly how you intend to use your new vehicles in day-to-day operation.
Be sure to consider:
Will they need any specialist adaptations to fulfil their roles?
What kinds of routes & road conditions will they travel?
What kinds of equipment/cargo will they be carrying?
Harness your current route planning & telematics data to identify exactly what your new vehicles will be doing on a day-to-day basis, and use this to map out some key requirements you’ll need from new stock.
This analysis is especially important if you’re considering any EVs or low emission alternatives, as you’ll need to understand their expected range, efficiency, and charging requirements - particularly if they’ll be carrying a load.
Read More: The Pros & Cons of Switching to Electric Commercial Vehicles
2 - Consider the pros & cons of the vehicles you already operate
If your fleet already has similar vehicles in operation, identify the key benefits and challenges posed by the different makes, models, and specifications.
Be sure to consider:
Their current repair & maintenance costs
Fuel efficiency
Driver feedback & pain points
How long does it usually take to repair them after an incident?
Identify all the pain points you can - from your top-level commercial needs, to the technologies, specs, and features that cause issues, or indeed provide value on your current vehicles.
This will help you to understand all the benefits, challenges, and drawbacks of your existing stock, allowing you to assess the compatibility of your purchase options on a more granular level.
3 - Identify which vehicles need replacing, vs retaining
Following on from the above point, conduct similar analysis to understand which vehicles your fleet would most benefit from replacing vs retaining for the foreseeable.
Use the data you or your partners have available to to rank vehicles with:
Highest mileage
Highest Maintenance & Repair Costs
Longest VOR time
Lack of available parts
Be sure to use a multifaceted approach, comparing all variables to understand the cost impact of replacing vs retaining specific vehicles. While age, mileage, and lease end dates are always important as guiding metrics, they aren’t a catch-all indication of which vehicles need replacing as a priority.
For example, you may have vehicles which, although older or with more miles on the clock, have already received sufficient maintenance to keep them running for the foreseeable future. Replacing such vehicles could be counterproductive from a cost perspective, as your business has already invested in keeping them on the road.
Equally, you may have newer assets which are posing challenges or accumulating high maintenance costs - so judging the benefit of retention vs replacement should always be a fleet-wide exercise.
This is also a valuable time to harness individual driver feedback - helping you identify any common issues or pain points with specific assets in your fleet, based on their day-to-day experience in the cab.
Rory Mackinnon, Commercial Director at Holman, highlights the importance of taking a multifaceted approach to vehicle ranking:
“Judging vehicles on lease end dates does not give a true indication of when they need replacing; some vehicles have much harder lives than others. As such, data points such as mileage, maintenance spend, current/future values and VOR should all be considered”
4 - Consider any vehicles which could be replaced with EVs
With the recent launch of the UK’s Zero Emission Vehicle (ZEV) mandate, it’s never been more important to start identifying opportunities for your fleet to switch to EVs, or low-carbon alternatives.
The ZEV mandate dictates that vehicle manufacturers must sell an increasing number of zero emission vehicles each year, as a rising proportion of their total sales.
For fleets, this means it may be challenging to replenish your existing ICE or even hybrid assets, without buying a proportionate number of EVs from the same manufacturer.
To navigate this challenge, identify which (if any) of the vehicles you’re looking to replace could feasibly be transitioned to EV. Consider the routes and miles they’re travelling, where they’re stored overnight, driver feedback, and the necessity for any onboard equipment/machinery.
This will help to ensure you can still procure any ICE/hybrid vehicles you need, while also helping to accelerate and define your fleet’s approach to EV adoption.
James Fisher, Chief Executive Officer at Gecko Risk, EV & AFV insights specialists, highlights the importance of in-depth risk analysis when transitioning to all-electric equivalents:
“With many fleets self-insuring up to a certain threshold, it is also important for decision makers to understand BEV accident frequency and severity on a make and model basis, and how this might differ from a regional perspective.
Just because a fleet may have had a positive experience with a certain ICE make and model in a certain region, does not mean the same will apply for the EV equivalent.”
5 - Lease, hire, or cash purchase? Decide which is right for you
With the vast range of vehicle procurement options on the market, it’s important to understand which option is right for your fleet - both from a cost and efficiency perspective.
For most fleets, this is usually a choice between:
Operational, contract, or finance leasing
Purchasing via loans, conditional sale, hire purchase
Purchasing outright with cash
Navigating these options can be complex. It means calculating the internal rate of return for leasing vs purchasing the specific vehicles you’re considering - and also considering the conditions in which they’ll operate day-to-day.
For example, if you expect the vehicles to receive ‘heavy use’ - such as exposure to raw materials, high mileage, or heavy terrain - purchasing may be the most viable option. This is because most commercial leases, even for heavier vehicles, require assets to remain in-line with the provider’s set limits on mileage, condition, and maintenance at the point of return.
However, purchasing commercial vehicles in large numbers is undoubtedly a significant investment for any business. Therefore, if it would be more beneficial to allocate funds elsewhere - such as enhancing your fleet’s infrastructure, upgrading existing vehicles, or improving commercial operations - it may be worth exploring lease and hire options.
The important thing to remember is there’s no right or wrong answer - it entirely depends on your expectations for operating the vehicle, and which option is most cost effective in your fleet’s case.
Rory Mackinnon of Holman elaborates:
“How you acquire vehicles is the biggest decision you will make for your fleet. Whilst cost is of course a factor, you need to make sure you have the flexibility and transparency from your supplier to maximise the value of that investment”
6 – Compare different makes & models using granular industry data
Before committing to any new vehicles, it's important to compare all the makes and models on the market in-depth - to understand the different cost and efficiency implications they may bring. This will help you to more accurately project the total cost of your transition, and maintaining any new vehicles long-term, guiding data-driven purchasing decisions.
To achieve this, you’ll need to calculate a total cost of ownership (TCO) for each option, based on the initial purchase/leasing costs, day-to-day operating expenses, and projected repair and maintenance fees.
Calculating an accurate TCO also means understanding any ‘hidden costs’ likely to be found in operating the vehicles - such as insurance premiums, tax bands or emissions charges, and downtime for repair or maintenance.
Use any data you have available across the industry, or from your repair & maintenance partners, to understand the trends in repair and operating costs for the vehicles you’re considering.
Compare this data to the costs you’re used to with your current stock to identify any savings or additional expenses you’re likely to encounter by transitioning. This will help you to weigh up the cost and efficiency implications of different vehicles on the market, and identify the most eligible choices for your fleet.
7 - Consider the latest onboard features & safety enhancements
When exploring the different options on the market, it’s vital to consider the different onboard features and safety enhancements vehicles might have fitted as standard.
Consider both how these could provide value to your fleet, such as reducing incident frequency and severity, and also the implications they may pose for ownership - like added requirements and costs during repairs.
This will help you to get the most value out of your vehicle purchasing strategy, by identifying which onboard solutions may benefit your fleet, while also comparing the potential operational implications.
It will also ensure you have all bases covered when it comes to rolling out new vehicles - such as implementing driver training for new features, and integrating them within the accident management process.
Read more: 5 Commercial Vehicle Safety Features and What they Do
8 - Consult your suppliers & accident management partners
Be sure to involve your fleet’s suppliers, repairer partners, and accident management providers in any purchasing or rollout decisions. They will be able to provide insight from their own experience, including around the benefits and shortfalls of any makes/models you’re considering.
They may also be able to facilitate cost-saving opportunities for your shortlisted vehicles, including through leveraging existing manufacturer, repairer, or parts sourcing relationships.
This will help you to project a more accurate total cost of ownership for the vehicles you’re considering, and achieve a most cost-effective rollout of your new stock.
Chris Beeby, Business Development Director at sopp+sopp, elaborates:
“Data is playing an increasingly vital role in strategic decision making for fleets. Operators need to look to specialisms within their existing supply chains to provide them with actionable, relevant insights to guide their acquisition strategies…
At sopp+sopp, we support existing customers with granular vehicle data, which helps them achieve an in-depth understanding of total cost of ownership.
Repair costs, downtime and parts procurement - including cost and utilisation of alternative parts sources - are all key for ensuring operators have a complete understanding.
This comprehensive level of insight enables them to make more informed, data-led decisions in their procurement and utilisation strategies.”
9 - Involve your drivers in purchasing & roll-out decisions
Driver engagement is crucial when making any change to your fleet’s vehicle stock. Their vehicles are their workplaces, after all, meaning they’ll be incredibly in-touch with how your vehicles are used day-to-day, and the potential implications of replacing them.
Survey your drivers to understand:
Their preferences for transitioning to newer vehicles
Any onboard equipment they do/don’t need day-to-day
Their overall appetite for change (particularly around EV)
This will help you identify which vehicles your drivers are most open to adopting, and the onboard equipment & features they need (or equally, don’t need) to be fitted with.
It will also help you gauge how different driver cohorts feel about changing vehicles – allowing you to identify both internal ‘champions’ for your future rollout, and cohorts who may need more support during adoption.
While you may not always be able to fulfil your drivers’ exact vehicle preferences, their input is of vital importance for ensuring a smooth and friction-free transition.
10 - Test your new stock in operation before rolling out fleet-wide
Once you’ve identified a few suitable vehicles, it’s time to try them out on-the-job to compare their performance, and get first-hand feedback from your drivers.
Use the feedback you’ve acquired from drivers to identify a test group, with varying levels of appetite for new vehicles. Both those who are in-favour, and those who are sceptical will be valuable cohorts for gauging the true day-to-day implications of your transition.
This will help to inform which vehicles you roll out fleet-wide, and how you approach this transition practically, including through driver engagement, education, and training.
Using a small test group like this will help you to mitigate any issues in understanding or engagement before taking the vehicles fleet-wide, reducing the risk of friction down the line.
sopp+sopp - Data-Driven Fleet Accident Management
Since 2003, sopp+sopp have worked with some of the UK’s best-known fleets and commercial insurers to deliver data-driven, end-to-end fleet accident management…
We recognise that choosing the right vehicles for your fleet is critical for balancing future running costs, controlling repair outlay, and ensuring a smooth transition to newer stock. That’s why it’s so vital to have the right insights and partnerships to inform your purchasing decisions, and drive your strategy for vehicle rollout.
At sopp+sopp, we utilise a wide range of both internal and industry data to help our customers to make the right decisions for their fleet, and prepare their processes for whichever vehicles they choose.
This includes delivering crucial insights on vehicle performance, parts availability, and repair costs & turnaround - which help our customers to make effective purchasing decisions, and mitigate future risk.
Partnering with Leading EV & AFV Data Specialists
In 2023, we partnered with Gecko Risk - specialist providers of data & risk management solutions for the alternative fuel & EV market.
Our partnership gives us access to even more insights & analysis to help fuel our customers’ EV transitions - supporting them in purchasing decisions, operational adaptations, and rollout strategies.
This includes valuable insights around vehicle performance, popularity, and repair costs & turnaround across a range of manufacturers, which empower our customers to identify and mitigate the risks associated with EV adoption.
Learn more about our partnership with Gecko Risk…
End-to-End Accident Management
Our accident management solutions are tailored to your fleet’s unique challenges and requirements, and deployed in accordance with your specific vehicle makeup - from incident reporting to repair practices.
Whatever your fleet’s requirement, sopp+sopp has the expertise and in-house solutions to help you achieve swift & responsive accident management, and get your drivers back on the road quickly post-incident.
Founded on Commercial Vehicle Expertise
sopp+sopp was founded on commercial vehicle expertise, to serve the specific needs and intricacies of fleet management. With this expertise at our foundation, and over two decades of exposure to the ever-changing industry, we possess an in-depth understanding of all that goes into commercial fleet management.
Our dedicated fleet & commercial teams work with fleets of all sizes and purposes, operating everything from large specialist HGVs to vans and cars - with no restrictions on class, size, or fuel types.
Learn more about our award-winning fleet accident management services, or get in touch for a chat with one of our experts: