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Is it good to buy an ex fleet car – and what should I look out for?
If you’re in the market for a used car, it could be worth looking at an example that began life as a fleet vehicle. We run you through the benefits and pitfalls of buying an ex company car...
It’s inevitable – at some point your car is likely to reach a stage where it’s better to replace it than repair it. And if your budget dictates, a used car is often the way to go.
As always in the used-car marketplace, it pays to take care when looking at potential purchases. Yes, the marketplace is no longer the wild west it perhaps used to be, but you still need to have your wits and research about you.
And that research is quite likely to have shown you that a car that began life as a company car is a very sensible place to start. That’s because there are some strong deals to be had on lightly used examples.
Here we show you what to look out for when you’re on the hunt for a used fleet vehicle.
All our advice applies equally if you’re a long-time private buyer, or if you’re opting out of your employer’s company car system, and choosing to take the car allowance instead.
Read more fleet and company car advice
Fleet cars are usually well maintained
Fleet cars tend to do higher mileages than most cars because they’re needed to cover large business mileages during the week, plus all the usual personal mileage in the evenings and at weekends.
While that sounds like a bad thing, you should remember that leasing agreements come with strict maintenance schedules that a company must stick to. In other words, any fleet car must be serviced on time, every time, and usually by a franchised dealership. And repairs have to be done immediately, and to the standard expected of a manufacturer’s dealer.
All servicing and repair work will be detailed in the car’s paperwork, so make sure you see it and understand it before you put pen to paper.
Why lots of motorway miles can help
Rigorous maintenance isn’t the only reason a former company car can make a good used choice. As we’ve said, fleet vehicles tend to do more miles than most, but the good news is that those tend to be pretty easy miles, usually carried out on the motorway.
In the main, cars on the motorway tend to keep to a constant speed, so there’s minimal wear on the gearbox and brakes, and the relative absence of bumps and kerbs means there’s little to damage the suspension and wheels on.
So, if you’re lucky, a motorway trip can pass at an easy, constant speed that places almost no stress on the vehicle and its occupants.
Read more: The most reliable used cars
How fleet leasing agreements aid buyers
When a company takes delivery of a fleet vehicle, it does so under a lease agreement, and such agreements always have a ‘fair wear and tear’ clause. In short, when the car is returned at the end of the lease deal, it must be of a certain condition, otherwise severe financial penalties will apply. These penalties are a strong incentive for a company to keep its vehicles in good nick.
So, when a company car becomes damaged, the driver or their employer will usually pay to have it fixed, because the repair will work out far cheaper than the fair-wear-and-tear penalties. In other words, pays for a company to look after its vehicles.
However, there’s also no escaping the fact that because company cars get used more than private vehicles, they can fall victim to slightly more wear and tear, so you need to either be prepared to live with that, or willing to fix it.
Plenty of mileage but not much kit
As soon as a company car joins a business fleet, it tends to be on the go most days, a result of which is that the mileage will be higher. But if you’re okay with a lofty odometer reading, you can use this to your advantage during negotiations.
Prices tend to be lower in the first place, and you can usually haggle some more off if the sales outlet is keen to shift the car on. And because leasing agreements tend to last for a maximum of three years, there’s a fair chance your car will have some of the manufacturer’s original warranty outstanding.
One more thing to be aware of is that fleet cars can be fairly standard, with few extras. This is because extras push up the P11D price, which directly increases the amount a user-chooser has to pay in Benefit-in-Kind tax each month. It can be worth looking for a make and model that had plenty of equipment fitted as standard in the first place.
Buying an ex fleet car – conclusion
As with most used-car purchases, you need to have your eyes wide open before you buy a former company car. If you do, so vehicles can end up being a bargain-priced, well-cared-for and reliable car for years to come.
Yes, the mileage will be a bit higher, and it might display the odd parking scar, but the price will be lower. It will also have a comprehensive service and repair history, and if it’s just hit its third birthday, it will most likely have just passed its first MoT, too.
So, if you keep your expectations real, and are willing to live with a bog-standard machine, the used-company-car marketplace can provide a rich seam of motoring treasure.
Read more fleet and company car advice
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