Reducing The Cost Of A Vehicle Fleet

Running a single vehicle is often expensive enough – let alone a fleet of vehicles. Of course, many businesses cannot function without multiple vehicles at their disposal. Taxi companies, delivery companies and construction companies are all prime examples of this. Just how can you reduce the cost of running a fleet? There are many cost-cutting strategies that you can put into action. Here are just a few ways to save money on a fleet of vehicles. 

Choose economical vehicles

When choosing vehicles, it’s important to select economical solutions. Various factors can affect the cost of a vehicle:

• Model/manufacturer: Some models and makes of vehicles are known for being more reliable or may cost less to insure.
• Age: Older vehicles typically cost less to buy and are cheaper to insure. However, newer vehicles may be more reliable and fuel-efficient. 
• Mileage: A vehicle that has done a lot of miles is more likely to experience wear and tear. That said, some vehicles may be able to do more miles than others without running into problems. 
• Size: Larger vehicles are more expensive to insure and typically require larger engines that guzzle fuel at a faster rate. When considering the loads/passengers that you will be transporting, avoid going bigger than you need to.
• Fuel: Diesel is more expensive than petrol. Electric and hybrid vehicles can be some of the cheapest to run, but their limited range and lengthy charge time may not be suitable for some businesses. 

Weigh up these factors when choosing vehicles for your fleet. Consider what types of vehicles are most popular and whether there is a reason so many businesses choose these vehicles. 

Lease. Don’t buy

Leasing can be more affordable for many businesses. There isn’t the huge upfront cost of buying outright, nor do you have to resort to finance deals with large interest fees. Of course, when you lease a vehicle, you are technically renting it – which means there are some restrictions.

You may have to stick within a certain annual mileage limit and may not be able to carry out any modifications (removable modifications like vinyl wrapping may still be allowed).

You’ll usually only have the vehicle for a fixed lease period and won’t have the option to buy it at the end, however, you can simply take out a new lease on a different vehicle. 

Shop around for fleet insurance

If you’ve got multiple commercial vehicles, you don’t want to be insuring each one individually as this is likely to be a hassle. Fleet insurance allows you to insure multiple vehicles under one policy with single monthly payments. It can also be a lot cheaper than individually insuring each vehicle.

Of course, fleet insurance rates can vary, so it’s important to shop around. Some companies may offer more affordable small fleet insurance solutions. Others may have better deals aimed at larger fleets. Use brokers and comparison sites to find the best deals. 

Optimise routes

Route optimization involves finding the best routes for vehicles. While some companies prioritise the fastest routes, others prioritise the most economical route. There is GPS software out there designed for finding the routes that use the least amount of fuel and are toll-free.

It’s also possible to monitor the driving of each of your drivers and encourage more fuel-efficient5 habits (some companies reward drivers who achieve the best MPG). Telematics devices can be used to record various vehicle stats like MPG and average speed. 

Invest in preventative maintenance

When a fault occurs with a vehicle, it’s important to get it fixed in good time before it causes knock-on damage. Make sure that drivers notify you of any vehicle problems as soon as they notice them – including warning lights, odd sounds or things that just don’t feel right.

Servicing vehicles annually is also important for detecting hidden faults early. Getting these faults repaired before they become too noticeable could save you money. Avoiding breakdowns should be your main priority, as these can cause interruptions to your business that can lead to major financial losses. By detecting faults early before a breakdown occurs, you can schedule repairs at a time that better suits you.

Conclusion

By considering all the above measures, you could save a lot of money when running a fleet. There are other measures you can take such as shopping around for repair quotes and even outsourcing vehicles for certain jobs. However, the above measures are likely to make the biggest impact and should apply to most types of business.