Reducing your fleet costs

В рубриках: Automobile | Автор: admin 21.01.2012

Reducing Your Fleet Costs (1)

It is important for anyone responsible for running a fleet to be aware of all associated costs, of which there are many. Below we give you guidance on what points to consider.


• Are you funding your vehicles in the most effective way? You should compare funding over the contract period on a net present value (NPV) basis

• Are you running vehicles over an optimum period of months given vehicle type, usage and anticipated mileage?

• How important is predictability of costs to your business (used vehicle prices and running costs move with market forces, contract hire passes the risk to the leasing company)

Vehicle Choice

• What is the total cost of the chosen vehicle? Consider resale values, maintenance, insurance, fuel and NI costs when selecting vehicles

• Is it cheaper to run diesel or petrol models for your fleet? Purchase price will vary as will maintenance costs, mpg performance and pump prices for fuel

• What discounts are available? Large leasing companies reflect volume-related discounts from

manufacturers in pricing to their customers. Depending on fleet size you may be able to

negotiate discount with manufacturers or dealers, particularly if you restrict vehicle choice to a small number of makes and models rather than an open “user chooser” policy

• Consider carefully which optional extras your policy will allow drivers to add to their vehicle. Some help vehicles retain value at resale (e.g. metallic paint, alloy wheels, leather seats, sat nav) others may detract buyers (unusual colours, body kits, sun roofs, manual transmission on prestige makes). LCV’s benefit from ply lining, full bulkheads, manufacturer white colour and correct wheel base to weight ratio

• Many fleets choose benchmark vehicles to align vehicle choice with driver entitlements and ensure a competitive offer compared to other similar employers. Choose models that reflect your fleet policy objectives

End of Life

• Damage to vehicles costs you money at disposal either through reduced sale values or recharges if leased. Ensure all damage is reported – SMART or bodyshop repair may save further damage and prove a more cost-effective solution. Some companies oblige drivers to contribute towards the cost of repairs they have caused

• Keep track of vehicle mileages. Vehicles with higher than anticipated mileage will achieve less at sale and if contract hired attract excess mileage costs

• Re-contracting leased vehicles to adjust expected end mileage is a good way of spreading these costs over the course of the remaining contract. If mileage is likely to be lower than anticipated you could pay less each month till the end of the contract

• If a driver leaves and you need to return a leased vehicle earlier than expected, avoid early termination charges by relocating vehicles to new drivers for the remainder of the lease or offering up to existing drivers due a replacement


• Maintenance can be paid for on an actual cost basis or more predictably on a budgeted basis e.g. as part of a contract hire monthly payment

• Buying maintenance through leasing companies can save you money through:

– Taking advantage of combined buying power

– Controlled quality and cost of work through a managed network with pre-authorisation by trained


– Consolidating invoices for all work carried out

– Ensuring warranty work is not charged

– Identifying problem vehicles and making representation to the manufacturer

• Make clear to drivers their responsibilities, e.g. for tyre pressures and tread; oil, fuel, water, antifreeze levels; wiper blades; vehicle cleanliness; lighting checks

• Proactive maintenance can prevent additional costs, improve safety and reduce fuel consumption

• Identify “rogue” drivers with above average maintenance, tyre, damage, accident and fuel costs.

Discuss their driving performance with them, consider driver training or recharging of some items.

If this is a common problem consider linking level of vehicle entitlement to driving record

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