Nexus launches unique mileage calculator to help cut private mileage costs hitting public sector
UNIQUE MILEAGE CALCULATOR AIMS TO CUT PRIVATE MILEAGE COSTS HITTING PUBLIC SECTOR
www.nexusrental.co.uk
Nexus online Mileage Allowance Calculator provides instant data on the economics of 'grey fleet' usage with potential to save public sector millions!
An innovative new tool has been developed to give public sector employers instant answers on the best vehicle usage for employee travel.
According to recent research*, at an average of 59p per mile paid to grey fleet drivers (those using their own vehicles for work-related journeys), the financial argument for reducing grey fleet mileage is compelling, and nowhere more so than in the public sector where budgets are already under enormous scrutiny.
For example, according to the research**, a typical grey fleet driver undertaking a 180-mile business trip would cost a county council an average of £106.20 -yet if they made the journey in a rental vehicle it is likely to cost the council somewhere in the region of £46. But for many local government and other public sector organisations it has been difficult to know where the cut-off point is for grey fleet usage.
Now leading vehicle rental specialist, Nexus Vehicle Rental, is tackling the issue, with its unique online Mileage Versus Rental ( MVR ) Application
"The Office of Government Commerce (OGC) launched a major initiative last year to tackle Grey Fleet usage, with grey fleet projects managed under the collaborative fleet procurement project saving over £8m for public sector organisations in 2008/2009", reported Neil McCrossan, CEO, Nexus Vehicle Rental.
"We believe our online mileage allowance calculator, supports this initiative, giving public sector employers an immensely simple way to ensure the right financial choice is being made for each journey. They should, therefore, be able to make significant savings to meet the budget cuts that are widely reported to be needed in the public sector in the next few years.
"Of course, public sector employers also need to think about safety. If an employee uses their own vehicle, is it suitable for the journey and is it in good condition? It's very hard to monitor the condition of employees' own vehicles, and there could be serious liability risks for an employer if there's an accident. But there is often a misplaced belief that an employee using their own vehicle is a cheaper option than renting.
"And there is further pressure to meet Government stated aims of managing and reducing CO2 emissions.
"Our new Mileage v Rental tool tackles both of these challenges head on too."
The Nexus Mileage v Rental tool, accessible via the company's IRIS rental management system, provides an eminently simple one step process to identify whether it is more economical for a private vehicle to be used or for a vehicle to be rented for the journey. And if rental is shown to be more cost-effective, IRIS can make the vehicle reservation automatically online, either accessing the Nexus rental network, or the user's own rental provider.
All the user has to do is enter the type of vehicle they will be driving -by engine size and transmission - the expected total mileage for the journey and the mileage allowance paid by the employer. An automatic on-screen report tells them the most economic solution -private vehicle usage or rental. Plus a graph shows comparisons, split into 100 mile blocks, of the costs of private vehicle usage and rental. This enables the user to calculate exactly when it becomes better value to rent a vehicle.
The Nexus MVR application also offers options for downgrading on the engine size of the vehicle, if renting, with both the cost and environmental benefits.
"Cost of business travel is obviously a huge issue for the public sector", continued Neil McCrossan. "But the environmental impact of business journeys is also a major focus for central and local government organisations who are expected to lead by example. Our carbon calculator, enabling public sector employers to select their rental vehicle by CO2 emissions as an integral part of the rental reservation process, gives them the ability to reduce their carbon emissions in a very simple way."
To find out more about the Nexus MVR tool call 0871 984 1947
*Fleet News investigation, September 2009
**Hire rates calculated for one day in a lower-medium sector car including delivery and collection, full insurance and fuel - September 2009
