Selecting company cars: how to build your fleet

Are you thinking of getting company cars? Or would you like to expand your current fleet or make it greener? Then it’s important to select the right cars. But how do you make the right decision? What do you need to consider?

In this blog post, we’ll tell you what to consider when you build your fleet.

 

What are your options? 

If you want to start building a fleet or expand your current one (or make it greener), you need to know your options.

Traditional cars

One of your options is the ‘traditional’ company car with a combustion engine, like diesel and petrol cars. 

At Alphabet, we recommend petrol cars for drivers who generally drive short or urban routes, with a maximum of 30,000 kilometres annually. Diesel cars are more suitable for drivers who have longer trips ahead (>50km), with over 30,000 kilometres annually. 

Electric cars

The second option is a company car with full or partial electric drive. Like electric cars and (plug-in) hybrids.

At Alphabet, we recommend hybrids for drivers who usually drive short or urban routes. That’s what makes a hybrid car – if you look at movement patterns – an excellent alternative to the petrol car.

Fully electric cars are mainly recommended for drivers who drive less than 50 kilometres a day.

Other mobility solutions

Besides company cars, you can also complete your fleet with other mobility solutions like (electric) bicycles or a mobility budget. The latter allows your employees to use other (external) mobility solutions. The solutions depend entirely on the partner offering the mobility budget. Examples of popular alternatives within the mobility budget are public transport, car sharing and scooter sharing.

 

How do you make the right decision? 

To select the right company cars for your fleet, you should take your employees’ movement patterns into account, but also the factors below:

Tax deductibility

One of the most critical factors in choosing company cars is the tax deductibility that comes with a certain vehicle.

Because of recent tax legislation, hybrid and electric cars are the most interesting, especially looking towards the future. As a company, you won’t just get tax benefits on the cars, but also on charging costs and the costs for the installation of charging points, for instance.

Cars with combustion engines, on the other hand, will soon not be deductible at all anymore, making them less interesting from a fiscal perspective.

Total Cost of Ownership

Another important factor to consider when you choose a company car is the total cost of ownership (TCO). That TCO envelops all the costs connected to a company car.

In 2023, the TCO of electric and hybrid cars is usually more appealing than the TCO of cars with combustion engines. In other words, electric and hybrid cars are the better option for your fleet.

In the future, electric cars will without a doubt become the most appealing option. Mainly because the tax deductibility of diesel and petrol cars will vanish completely. 

Driving habits of your employees

A third factor you need to take into account is your employee’s driving habits. 

To determine those habits, we created our very own test. This test was based on two variables: the daily pattern of movement the driver has and the available charging points for drivers.

Based on the test, you can determine which cars suit your drivers best. Because even if electric and hybrid cars are financially more appealing, they may not be from a practical point of view.

Employee attitude

A final thing to take into account is employee attitude. This factor is especially important when you already have a fleet and are considering making it electric.

We can tell that drivers are often left with many questions on the transition to electric driving. That’s why it’s important to give your employees enough information on the transition and to manage their expectations on electric driving.

 

How can Alphabet help you?

No matter what you want your fleet to look like, we’d be happy to help. From advice and custom leasing packs to managing your fleet completely, we can support you and your drivers from A to Z. Together, we’ll look for the right company cars and/or mobility solutions and build a cost-efficient, sustainable and future-proof fleet for your company.