LCV Telematics in 2023
LCV trends towards shorter term lease deals
The benefits of leasing commercial vehicles are ever present in the current cost of living crisis. It appears more businesses are leasing LCVs over a short term (2-3 years) to get the most vaule from the lease contract. 6 key benefits are:
- 100% VAT can be reclaimed
- No depreciation loss
- New vehicle when lease is renewed
- Easier to manage cash flow with consistent monthly payments
- VAT free maintenance packages
- Manufactures have discounts all year round
The biggest benefit from this list for businesses is the ability to claim the VAT back. 100% can only be claimed back if the LCV is used solely for business purposes, whereas 50% can be claimed back if the LCV is used for private journeys.
The Webfleet logbook feature can simplify the administration in proving mileage and trip details. It connects to the vehicles odometer to give accurate readings of mileage with GPS locations if required. The image below shows how it would be displayed in the Webfleet platform
This data is stored securely in the Webfleet cloud for 2 years so it is easily reachable to clear up any discrepencies in mileage for HMRC purposes. Webfleet calculate this data by connecting to the vehicle ignition feed. An ignition on message begins a trip then an ignition off message ends it. These individual trips are then stored in Webfleet to be analysed when needed. There are 2 ways to gain this ignition feed:
LINK 245 Plug-and-Play OBD-II port connection
This telematics unit is the most versatile, easily exchangeable between vehicles. The perfect product for when the lease comes to an end as it simply plugs into the OBD-II port thus saving on any installation costs. It is able to gather all the information required for an LCV fleet including 24/7 tracking, trip reports and real-time odometer data all for the price of £149+vat with zero installation costs. Lightsource Design UK have used this method to great effect, saving many hours of admin whilst keeping trace of over 80 vehicles across the UK
LINK 640 Fixed Installation Unit
The LINK 640 is fitted into the vehicle and hardwired for extra security. It is the more expensive option at £169+vat and requires installation on top. Another cost is needed when the vehicle is swapped at the end of the lease to de-install/re-install between the vehicles. This can be the preferred option for fleet managers as it is harder for drivers to tamper with the connection. It all depends how much you trust the drivers?!?
VAT-free Maintenance Packages
Another benefit from leasing an LCV is the available maintenance packages that can keep the vehicle in supreme working order. Webfleet can assist with maintenance reminders scheduled for reminders. All areas are covered from brake checks, oil change, servicing and MOTs. The instructional video below shows how to set up maintenance tasks in the Webfleet platform. This will ensure the benefits of leasing an LCV with a maintenane package are not overlooked.
Webfleet Tariff Ideal for LCV Fleets
Webfleet have introduced their START bundle Track tariff as a cheaper alternative to their more popular tariffs in the haulage industry. This bundle involves the LINK 245 unit and a 24 month Webfleet subscription of £6.95+vat/month per vehicle. Lease options are available and can run alongside the vehicle lease contract. This will give the business owner a better understanding of their cash flow and avoid any unneccasary payments with different contract end dates. There is no point in paying for tracking with no LCV. The Track tariff has the below features included:
- 24/7 Track and Trace
- Schedule maintenance tasks with email reminders
- Trip report data stored securely for 2 years
- Differentiate between business/private mileage
- Harsh braking and steering events
Camera Integration (Optional Extra)
Webfleet are now able to integrate a video feed directly into the Webfleet platform. The CAM 50 connects via bluetooth to the tracking unit pairing the video feed to any crash detection events
The forward and inward facing cameras take the hassle of investigating claims to a minimum. The camera is fully compliant with GDPR regulations but the cab facing camera can be switched off when requested. The CAM 50 operates as a forward facing camera with the added AI intelligence to monitor driver behaviour. It will alert the driver to the following risky actions:
- mobile phone usage
- eating/drinking
- distracted
- smoking
- not wearing a seatbelt
