Fleet managers are always in a race to manage fleet management costs without adversely affecting other areas of the business. It is necessary to reduce fleet management cost in order to generate high profits by keeping expenses limited.
However, sometimes the situation becomes so challenging that it becomes hard to figure out a way to reduce costs. Also, the process can sometimes be tricky and one wrong step can affect the whole structure of the business.
But no worries! Here are some effective tips you can adopt to control fleet costs.
Did you know fuel covers a major portion of operational costs involved in fleet management? Now you know! So, the first thing you need to do is keep track of fuel consumption. Fuel prices are certainly not under your control, but how you choose to manage is definitely in your control.
Instead of worrying about high fuel prices, you should get vehicles with high mileage. This means the car should consume less fuel per kilometre. This is by far one of the most effective ways of dealing with high fleet costs.
Using fuel cards and availing coupons for fuel stations also help in controlling such costs. Buy a vehicle after carefully researching and analyzing. Do not buy too old or used cars as their mileage is poor.
Keep Cars in Good Condition
Even if you buy a latest and unused car, you will always have a responsibility of keeping it in good condition at all times. You must take it to the mechanic regularly and get all the issues fixed from time to time. Experts believe that cars kept in good condition do not add to your fuel expenses therefore they have always emphasized on mint condition of all types of cars.
Also, not to forget the condition of tires and brakes. They play a crucial role in fleet management costs. If you are looking to buy a new car, then you may look into the option to register for business car lease.
It is always a wise idea to have some of the most important and valuable possessions insured by a reliable insurance company. Good insurance policies cover many major costs such as repairs and this significantly reduces your expenses.
However, not all insurance policies may be in your favour. You need to look around and see what works best for your company. Sometimes, a wrong policy may end up elevating your costs so the entire purpose of getting insurance is defeated.
Depreciation has a strong connection with fleet management costs. In most cases, it covers as much as 40% of the total costs of operating a vehicle, so you can imagine its impact on the profits and total expenses. To reduce depreciation, you must look after your vehicle as high wear and tear tend to adversely impact depreciation.