In our recent blog, a comparison between car lists and budget-based ordering methodologies was made. In this second part, we’ll look into popular hybrid approaches. With the right tooling, companies can have best of both worlds. This requires a car configurator that is flexible enough to enable your car policy.
On the right, you can find a graphical overview of ordering approaches, sorted from no flexibility for the employee (car list with one car), to most flexibility: budget-based methods.
Extended car list
A first option in increasing flexibility for the employee in a list-based method is allowing to choose from multiple vehicles per policy level.
Car list + option budget
Next, the employer could allow the employee to configure additional options. These options could be payable by the employee, or the employer can provide the employee with a budget to configure additional options. The budget only applies to additional options, not other models.
Budget approach with “car list filter”
Here, the employer uses a budget based method in which the available brands and models is restricted. In practice, this aligns with the car list principle, but additional options can be configured within budget limits. This means that if an employee chooses for a configurable model that is lower in catalogue value than another model, the employee has more budget left for additional options. This approach is often perceived as more fair than the car list + option budget.
Restricted car configurator
Even more flexibility is provided to the employee when only the mandatory options (e.g. wireless phone kit) and non-permitted options or body types are specified. As these potentially introduce ‘exotic’ vehicles in the fleet that cannot be shifted to other employees, these method requires constant trade-offs by the fleet manager. The “budget-approach with car list filter”, in which the car list filter contains a large set of popular models, therefore is opted for in practice.
Left: Independent from the budget cost of the vehicle, the employee is allowed to configure additional options (within a certain budget). This option budget can either be funded by the employer or by the employee (e.g. cafeteria plans).
Right: In a car list-restricted budget method, only budget limit overspend to be funded by employee.
How Headlight can help you
Whether your car policy works with a car list or budget method, you can easily configure and manage your policy and order possibilities within Headlight. In that way, our car configurator allows for flexibility towards employees, while keeping control of spending options. It uses latest updates on all available vehicle models, options and pricing.
In a later blog, we will dive into what the options are for employees to do personal contributions, and how Headlight enables employees and fleet managers to do so.
Feel free to contact us at firstname.lastname@example.org or reach out to discuss!