How To Save Money On Your Business Fleet Costs

Posted on Mar 3 2015 - 7:33am by Desk of Editor

As you are reading this article, it’s likely you have a fleet of vehicles in your business. It might comprise of passenger cars, and maybe a few vans too. One thing that might have brought you here today is your need to reduce your business fleet costs.

It doesn’t matter what size business you have, whether it’s small or large. It’s no secret that company vehicles represent some of the biggest expenses of any organization.

The good news is that there are numerous ways you can reduce your fleet costs. Want to know what they are? Keep reading to find out more!

JaguarConsider moving to non-franchised suppliers

Most companies get their vehicles from franchised organizations. They are ones that have nationwide branches, similar to regular car dealerships. The thing about used franchised suppliers is that their overheads are high. And that means they pass on those costs to you.

You could end up paying more for your vehicles than you need to. The solution to that problem is to “vote with your feet” and switch suppliers. There is a plethora of independent business vehicle specialists out there. It’s just a case of seeking them out and learning which one offers the best deal for your company.

Stick with fuel-efficient vehicles

Although many of today’s cars are fuel-efficient, not all of them are! That’s why it’s important to check the fuel economy and engine emissions statistics of each vehicle.  For example, many companies prefer the BMW 320d EfficientDynamics. Why? Because of its high performance and low CO2 emissions.

In many countries, the taxes that drivers have to pay for their company cars will depend on what vehicles they have. And, in particular, how eco-friendly the engines are. As it’s your business that has to pay for these cars, it’s best limiting your choices to greener vehicles.

Choose the right insurance company

When you have a fleet of vehicles, there are plenty of ways you can insure them. You can insure them through your leasing company. Or you could insure each model individually. But the savvy option is to get a fleet insurance policy from somewhere like http://insure-fleet.co.uk.

Such schemes allow you to administer all your vehicles under one central policy. And, as is often the case, your car insurance will be cheaper than if you got them arranged through individual policies!

Avoid buying your vehicles

There is one reason why companies prefer to lease their fleet of vehicles instead of buying them. I am, of course, talking about depreciation! It’s a well-known fact that cars lose a lot of value as soon as you drive them off your dealer’s forecourt.

Leasing avoids that problem because you are, in effect, renting the vehicle for a term of three to five years. At the end of that period, you hand the car back and are free to do the same thing again with another new car!

Now that you know how to save on your fleet costs, it’s time to get busy and start making those changes!