3 Effective Ways To Reduce The Cost Of Fleet Management

Posted on: 1 September 2019

Access to company vehicles is important for many businesses. A fleet of vehicles lets employees make deliveries, complete service calls, and travel on work-related business with ease. The cost of maintaining a fleet of vehicles can be high, so it's important that you are constantly evaluating your management practices for ways to reduce spending on fleet vehicles.

Make some simple changes to your fleet policy and you can balance short-term savings with long-term efficiency when managing your fleet in the future.

1. Consider Leasing vs. Buying

One way that you can reduce spending is by making the switch from purchased vehicles to leased vehicles. No down payment is required to obtain a leased vehicle, which will immediately impact your company's cash flow.

Many dealerships offer access to free or reduced maintenance for leased vehicles, so you can cut costs in this area as well. Just be sure that you evaluate the terms of a lease carefully to ensure mileage limits and monthly payments will not be too restrictive for your company.

2. Analyze Fleet Use

It's important that you are constantly monitoring your fleet use if you want to maximize the efficiency of your fleet in the future. Utilize analytics programs to determine if you have too many vehicles in your fleet. Reducing the number of cars or trucks that your company maintains can significantly reduce costs.

Analytics can also provide you with insight into the ways that employees are using fleet vehicles. You can use the information received to implement new cost-saving policies regarding personal use of company vehicles.

3. Invest in Preventative Maintenance

Keep accurate service records on each vehicle in your fleet if you want to reduce spending. Preventative maintenance through regular services will help to extend the life of your fleet vehicles and reduce the potential for a catastrophic engine failure.

Be sure that you are scheduling oil changes, fluid flushes, tire rotations, and other vital services for each vehicle in your fleet. If you follow manufacturer recommendations in providing scheduled maintenance, you can rely on your fleet vehicles to perform efficiently over time.

Fleet management is not always an easy task. You can ensure that your fleet is both functional and affordable by taking the time to implement some strategic management practices in the future. Leasing your fleet vehicles, tracking use through analytics, and creating a preventative maintenance schedule are all simple things that can have a lasting impact on fleet management costs.