Even though petrol prices are already sky high and about to go higher, that isn’t the primary concern that most companies have when it comes to running their fleets. In a recent survey conducted by Alphabet, a fleet management firm, they found out that learning how to better control the costs associated with their fleets was a top priority. Richard Schooling, CEO of Alphabet, gave MT his best tips for maintaining your fleet without breaking the bank.
- Modernize Your Approach
If your company’s strategy for taking care of your fleet is woefully outdated, it won’t do you much good to scour the budget for ways to save money. Call in an expert to analyze what you are doing. You’ll learn ways to quickly cut costs.
- Rethink The Funding
The playing field for fleet finance has changes considerably since 2008 due to the meltdown in the banking sector plus changes in the tax code. Talk to a firm specializing in fleet finance and compare their offer with your current arrangement. You will save money.
- Update Your Choice List
The cars that you have available directly impacts the total operational cost of your fleet. Select cars to place on your choice list based on the estimated costs incurred over their lifetime. You’ll wind up with lower taxes and overall costs, less fuel consumption and emissions, and will have a fleet filled with better cars if you go beyond the cost per mile.
- Learn How To Plan For Lower Mileage
It’s important to plan your travel. Start by using a central system such as Mileage Capture to log all trips. Better records will also discourage drivers from claiming too much in expenses.
- Lower The Cost Of Fuel
After depreciation, fuel is the second highest cost of running a fleet. To lower costs, try using fuel cards. You’ll have more control over purchases and there are no taxes due when private fuel is bought. The free fuel benefit comes with a high tax that makes in not worthwhile for most businesses.
- Limit The Number Of Repairs Needed
Accidents cost money in more ways than one. They include the repair price, uninsured losses, injury claims, rental charges, and time off work. Specialist accident management can help with this, In some cases, they are able to reduce repair bills by up to 30%, third party costs by 40%, and road time by 60%. Of course, if looking for repairs make sure that your trader has a traders policy.
- Explore Skills And Scale.
Outsourcing the management of your fleet might be a good solution. Newer technologies make running a fleet much more complex. Fleet management firms have the specialist skills and operate with an economy of scale that you can’t match.
- Prevent Problems With Good Drivers
When your employees are trained to be better drivers, you will pay out lower amounts for maintenance and repairs. Use targeted training and driver assessments to ensure that you are managing your road risks. Looking for a specialist, competitive insurer for fleet car insurance can help a lot too.
- Rethink Your ‘Grey Fleet’
When people only need to drive for business occasionally, it is fine for them to use their own vehicle. However, it is a false economy when a car is necessary for an employee to do the job on a daily basis. When employees use their own car, this is known as a ‘grey fleet,’ and it generally costs more and increases risk.
- Look Ahead To The Future
Fleets and fleet management is changing as innovative firms enter the field. They have exciting ideas about how to save money while keeping your company mobile. Stay ahead of the game by keeping in touch with leaders in the field who work hard to ensure your firm is getting the most out of its fleet.