One of the hardest parts of managing fleets can be the costs, and in the ever changing landscape that we are currently facing with increases to fuel costs, changes to tax and insurance regulations, it is more difficult than ever. We have collated a few tips that businesses can utilise to reduce the cost of their fleet with the aim of making it more profitable.
Preventative Maintenance
Implementing a schedule for regular oil changes, tyre checks, services and MOTs can aid a vehicle to both run longer but also safer. Reducing the risk of long term downtime of that vehicle and therefore the cost to the business as there is less chance of having to pay for major repairs as well as a rental vehicle whilst that vehicle is out of service.
Fleet Size Reviews
Regularly reviewing the size of your fleet against the needs of your business can be a huge cost saving exercise. For example, if you have a fleet of 100 but are only regularly using 50 – 75% of that fleet then not only do you have expenditure that you could use elsewhere in the business but there are also costs to keep those vehicles and even if they are only used once or twice they still need to adhere to the same rules and regulations as those regularly used. Depending on whether you have purchased or leased the vehicles you could look to reduce the number of vehicles in the fleet to save you money.
Vehicle Lifecycle Management
It is common knowledge that older vehicles are typically less efficient than newer vehicles, not only from a wear and tear perspective but also some newer vehicles are made with efficiency in mind. Older vehicles can degrade (such as rubber seals, electrical components, and moving parts) and become more expensive to fix with the older the vehicle gets. Ensuring that you monitor the age of your vehicles along with the mileage and swapping those out for newer ones when the time is right can be a cost saving exercise for any business with a fleet.
Leasing over Purchase
There is a common misconception that leasing a vehicle is less effective than purchasing mainly because of the monthly costs that come with it, however, leasing for fleets can be more cost-effective. Firstly, you can lease new vehicles, with maintenance plans working towards points one and three mentioned above. Secondly, leasing also keeps the businesses cash in the bank allowing you to invest it in other areas. Lastly, leasing instead of purchasing means that you don’t keep the vehicle forever, leases are typically 2 to 4 years allowing you to reduce the fleet size after the lease is over if necessary for the business’s workload.
Switching to EVs
Something that many businesses are doing now is changing to Electric Vehicles. There are cheaper running costs, less internal components that can break and most importantly all you need to do is charge the vehicles reducing fuel costs (saving approximately £500–£1,300+ annually) . Whilst the initial cost of the switch can be deemed as expensive, the long term savings that most businesses will see are worth it.
Looking to make some changes
Many businesses will make these changes however without looking at the bigger picture. Using a data-driven decision-making process to make these changes is the best way for a business to do it effectively.
If you’re looking to implement some of the above changes but don’t know where to start then look no further. Vavoom can help you reduce the costs of your fleet easily and quickly, whether you are looking for a full fleet management provider or consultancy to help you improve the cash flow of your fleet we can help you. Get in touch today to start your journey.
