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Excel School of Motoring

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Quantifying Cost Savings

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It can very difficult to quantify the savings that advanced driving courses can make to a company.

Higher productivity and greater staff morale are understandably more difficult to cost than fuel & insurance premium savings. Directors and management may be prosecuted under Corporate Manslaughter legislation or Health and Safety regulations.  What would be the cost to the company or the individual?  Stress and sick days can be considerable and mount up quickly.

Fuel Savings

The following chart shows that with just 1 driver clocking up only 30,000 miles per year there are fuel savings to be made. Even in the first year and taking the cost of driver training into account, a saving of at least £60 and up to £480 is possible.  All this from just a few hours driver training.

 

No. of Drivers Annual Fleet Mileage Annual Fleet Fuel Costs 1 to 1 Driver Training Costs Subsequent Possible 5% Annual Fuel Saving Subsequent Possible 10% Annual Fuel Saving Subsequent Possible 15% Annual Fuel Saving
1 30,000 £4,200 £150 £210 £420 £630
5 150,000 £21,000 £750 £1,050 £2,100 £3,150
10 300,000 £42,000 £1,500 £2,100 £4,200 £6,300
1 60,000 £8,400 £150 £420 £840 £1,260
5 300,000 £42,000 £750 £2,100 £4,200 £6,300
10 600,000 £84,000 £1,500 £4,200 £8,400 £12,600
(Source A.A. annual mileage/fuel chart with company cars valued between £14000 to £22000)

In a larger organisation where there are 10 company car drivers doing an avarage of 30,000 miles per year, a minimum fuel saving of £2,100 should be easily made and could be as much as £6,300. Double the mileage and double the savings.

Maintenance Savings

Understanding and implementing of ECO friendly driving principles and techniques will reduce wear and tear on vehicles resulting in a reduced maintenace cost. A defensive driving style will produce fewer insurance claims, reducing insurance excess to the company. It is possible to save up to 5% on maintenace and insurance costs.

Reward Scheme

A driver reward scheme could be implemented for those drivers whom save the company the most money over a year. This could be easily funded by savings made by the drivers during that period.

 

Year on year training may not only comply with current occupational road risk management obligations but will also help keep driver morale and job satisfaction higher than otherwise, and thus provide company savings by means of increased productivity in addition to savings in fleet running costs.

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