Search
Close this search box.
Sign up for our weekly Newsletter

How to run a 4×4 without breaking the bank

Cost-efficient strategies for small business fleets that want – or need – to use 4x4s. By SHB 4×4’s Paul Street.

Share

10 January 2012

Cost-efficient strategies for small business fleets that want – or need – to use 4x4s. By SHB 4×4’s Paul Street.Businesses that run one or more 4x4s are worried. Residual values for 4x4s are weakening. High-emissions vehicles are coming under an ever-heavier tax burden. And fuel costs are hefty.

However, a business can still run 4x4s efficiently even in this tough climate. But it’s vital to follow a strategy that fits how the business uses 4x4s.

For some companies, one option is to shift the residual risk to a leasing company. This also brings the certainty of fixed monthly outgoings, which makes budgeting easier. In addition, it can also free up capital to direct at the company’s core business.

In our experience, many 4x4s are bought for a specific off-road purpose, then spend the majority of time on the road, when a different type of vehicle would be more suitable. Or sometimes they even sit in a company compound, depreciating in value and waiting to be used.

If that sounds familiar, then short-term renting might be your answer. You can hire a 4×4 when you need it, then hand it back when it has done its job. This makes practical and economic sense. Many leasing firms, including ours, offer short, medium and long-term rental periods.

If your company is committed to buying and selling 4x4s itself, there are still cost-effective measures you can take.

Firstly, spread the risk across different manufacturers, colours, specifications and transmissions. For example, an all-white fleet of 4x4s won’t do well with farmers, who are major buyers of used 4x4s. They prefer dark, inconspicuous colours.

There are a number of sales channels open to you: retail, internet and trade. As one channel slows, you can shift stock to another.

Make sure all working vehicles are either ply or load-lined from new. This minimises load area damage. And, as with any vehicle, you will maximise a 4×4’s resale value if it has a full service history and is spotlessly clean and in good condition.

Further information

Share this article

Facebook
Twitter
LinkedIn
WhatsApp
Reddit
Email

Want more motoring news?

Sign up here for our free weekly serving of motoring.

Sign up here for our free weekly serving of motoring.

Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

Latest news

Top