With fuel costs rising and changes to Vehicle Excise Duty (VED) on the horizon, it’s not an easy to time to manage the cost of your business van.
The good news is that there are still a number of ways you can save money.
Background: Vehicle Excise Duty and fuel prices
Since the start of 2016, unleaded petrol prices have risen by more than 13p per litre. As we move into 2017, OPEC is cutting production for the first time in eight years, potentially adding another 9p per litre. However, small business van drivers with post-2001 vehicles still face paying between £140 and £230 based on Euro ratings, and we can’t rule out changes in the future.
The VED changes announced by the chancellor, which come into effect in 2017, are mainly of concern for owners of high-end cars, including hybrids. However, van drivers with post-2001 vehicles still face paying between £140 and £230 based on Euro ratings, and we can’t rule out changes in the future.
Van maintenance
Keeping your van in a good state of repair can reduce both repair bills and running costs, including fuel bills. Basic maintenance, such as checking tyre pressure, keeping the oil and coolant topped up and regularly cleaning and inspecting the vehicle for rust, can all improve efficiency and help you to avoid major repair costs.
New vans
If you’re considering investing in a new van for business use or increasing your fleet size, several factors impact on costs. For example, the van size and engine efficiency can affect how expensive the vehicle is to run, how much tax is paid on it and how much your business van insurance costs.
Driving habits
Choosing a faster route can save fuel, especially if you can avoid expensive refuelling at motorway services, but so can eco-driving techniques like maintaining a constant speed, accelerating smoothly, engine braking and changing gears sooner. Planning ahead and carrying only what you need helps too: every extra 45kg in the vehicle reduces fuel economy by 2%.
Van insurance
Reviewing your provider is often the go-to for trying to save on your van insurance, but there are other tactics to help cut costs. Keeping your van safe with the latest security tech and secured off-street parking can play a part, as could taking an advanced driving course.
For more information on van and fleet insurance, visit our dedicated AXA van insurance page today.
