Should I prepay fuel for rental vehicles on business trips

Every company wants its employees to feel comfortable on a work trip, right down to the small details like a smooth and easy rental car collection. It’s important that fuel policies cover the specific needs of your business and find a happy medium between cost and convenience. 

Pre-paying for a tank of fuel, allowing travellers to hit the road straight away without worrying about refuelling later or recording expenses can be a tempting option. But what are the benefits of prepaying for fuel when you rent a vehicle? This guide will explore all of the options and help you to decide what will suit your colleagues.

Your options for fuel policies on rental vehicles 

Car rental providers offer an array of choices when it comes to fuel, depending on whether you value flexibility or cost. Let’s take a look at the most common options that you’ll encounter as a travel manager.

Full to full 

The most common fuel policy that you will encounter is known as full to full. Basically, a vehicle is collected with a full tank of fuel, and the customer is expected to return it with a full tank.

Be sure to keep your receipt and a photograph of your dashboard gauge, as some policies require proof that the car was fuelled within a certain radius.

Full to empty or pre-paid fuel

This is sometimes known as a pre-purchase fuel policy, where you pay for your vehicle to have a full tank of fuel on pick-up. The car is then returned with no expectation to refill.

Same to same

This option is a little more specific. The vehicle already has some fuel in the tank when you collect it, such as half or a quarter full. You are expected to return the car at exactly the same level.

Make sure you take a photograph of your fuel gauge on collection so you know the exact level to refuel at.

Pre-purchase with refund

With a pre-purchase with refund fuel option, you pay upfront for a full tank, and you get a refund for the fuel that remains in the tank once the car is returned. This option sometimes comes with an additional convenience fee.

Which fuel policy is best for business trips?

There are several elements to balance when choosing what’s best for your business and your colleagues. You’ll want to consider things such as:

• How far do your colleagues travel?

Are you a multi-national company where travellers cover hundreds of miles over a single trip? Or do your colleagues only need a car to travel to the airport and back? 

• What time of day will travellers need to hire a car?

Are work trips usually within sociable hours or will there be some early or late starts?

• How tight is the work trip schedule?

Is there time to spare or do your colleagues need to get to their destination for a defined appointment?

• What’s the location like?

Is it rural with limited refuelling options or in a city centre?

• What’s your company culture like?

Do your colleagues appreciate the freedom to choose when it comes to travel options, or do they tend to prefer to have defined limits to help narrow things down?

• Is there a preferred fuel supplier?

Do you allow flexibility on where a business traveller would purchase fuel, or would you have a preferred outlet?

• How are mileage expenses managed?

Do you use a corporate travel platform that easily allows colleagues to record expenses?

Fuel policy pros and cons

Once you’ve got an idea of the specific business needs, you can choose a fuel policy that satisfies those. Here are some of the benefits and drawbacks of each option:

Is prepaying for fuel for rental vehicles on a business trip worth it? 

Pre-purchase with refund policies score highly for convenience, but if you’re budget-conscious, it may not be the most suitable option, as fees normally apply. The cost of the prepaid fuel might also be higher than what’s available at local petrol stations.

Best for convenience 

The convenience of being able to collect a car with a full tank and not having to worry about keeping track of what you use, or refuelling, could be worth it.

You also have to consider the possibility that if a meeting runs late and your colleague has to rush around to refuel, they could miss their flight. Balanced against the cost of a missed flight, it’s definitely a cost-effective option even with the admin fee added.

Pre-purchasing fuel is a great option if budget isn’t a key consideration and you want to make sure the business trip is as stress-free as possible, reducing the shadow work of business travel.

Best for budget

Overall, full to full is considered the most budget-friendly fuel policy. It has the added bonus that you can choose which outlets your colleagues purchase fuel from if you have a loyalty scheme or preferred supplier.  

Same to same can also be cost-effective, but because this relies on precision, it’s worth considering whether this will cause additional stress for the business traveller. If it’s been a busy trip of meetings and events, the last thing your colleagues will want to worry about is meticulously tracking their fuel gauge. It also relies on fuel receipts being retained and returned.

What are the fuel policies for electric rental cars? 

Many businesses have sustainability policies in place regarding business travel. To extend this to car rental, companies can opt for business travellers to use electric cars rather than a conventional vehicle. 

When it comes to fuel policies, EVs are usually offered at a same to same rate, where a driver returns the car at the same level of charge it was collected at. If you return the EV with less charge, you can expect to pay a fee.

It’s important to consider the availability and reliability of nearby electric vehicle charging points if you choose this option. Costs vary too. Apps such as Zapmap allow you to view a map of charging locations, including live availability status. The time required to charge an EV is also much longer than refuelling a conventional car.

Making business car rental easy

By using Perk to manage work travel, you can choose from our industry-leading car rental inventory, with the option to book a long-term rental and select VAT-friendly options. Car rental costs can be added to expenses, which are instantly viewable through the app. Explore the options to see how Perk can help you book and manage corporate travel all in one place.