Facebook Twitter LinkedIn YouTube  Instagram Meetup 

Fleeting Finances: How You Can Control The Cost Of Your Business Fleet

As a business owner, you are naturally want to find every feasible way to keep your business running costs down. One of the biggest expenses that you may find yourself with is that of running your business fleet, whether that is a fleet of company cars, custom work trucks or heavy good vehicles. It is thought that on average, a fleet ends up being the second or third largest expense a business faces. It makes sense to look at the ways you can save some money. 

 

Here, we look at some of the things that you may want to consider.

 

Image via Pixabay CC0 

 

How will you procure your fleet?

 

The most significant expense associated with operating a fleet is usually the cost of purchasing vehicles, and most companies either lease or buy their vehicles outright.

 

Purchasing a vehicle outright entails a significant initial financial investment. This can include spending money that could be better spent elsewhere, particularly in the early stages of your company, or obtaining a loan.

 

If you decide to buy your vehicles outright, you can revisit the procedure on a regular basis to ensure that it is the most efficient use of company funds. Your vehicles are a depreciating commodity that loses value as soon as they leave the dealer's lot, and their prices are subject to fluctuation.

 

If owning a vehicle is not necessary for your company, leasing might be a viable option. Many fleet leasing options will save you a lot of money if you have a lot of vehicles. There has been a significant move toward this type of vehicle procurement because it is far easier to budget for and allows you access to a newer and wider range of vehicles than you would otherwise have if you were buying outright.

 

Can you extend the life cycle of your vehicles?

 

However, you choose to procure your fleet, lengthening the time in between replacements can save you a significant amount of money. If you replace them every three years at the moment, perhaps look at extending the gap to every four years. You want a safe and modern vehicle, of course, but modern vehicles are generally built to last longer these days, so you might be able to get away with having them a little longer.

 

Can you reassess your fleet vehicle policy?

 

Your vehicle policy has a significant effect on your fleet costs and making sure that your fleet management cost analysis includes vehicles with the lowest CO2 emissions and fuel consumption will result in huge savings. You should check your vehicle options regularly to ensure that you are only choosing vehicles that perform well in their respective classes or categories.

 

This will also help you prepare for future changes in regulations and laws that will impose more stringent standards on vehicle emissions. If you are especially forward-thinking, you may want to consider electric or hybrid vehicles, which are now widely available from most manufacturers. Of course, this is highly dependent on the specific business requirements.