Cost Savings Case Study

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£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:


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:


Administration &

Processing For Servicing

and tyre invoices

£70 £70 100%

Administration &

Processing of Road Fund

License

£35 £35 100%

Driver & Company downtime:


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:


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

Cost Savings Case Study

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