How to Reduce Fleet Vehicle Costs
As a result, many fleet managers are looking for new ways to save them money and overall cut down their fleet’s vehicle costs. What are these methods, we hear you say desperately; well we’re all about sharing here at FuelTek so here are some helpful tips!
This is an odd one, granted, but do you know that most fleet operators spend nearly twice the money on windscreens that they strictly need to, by getting them replaced rather than repaired? The cost of repairs is on average less than 15% of replacing. Carl Stephens, who serves as the commercial director of Venson Automotive says that, “the message is simple – think repair first, not replace.”
Check your contracts
If you’re leasing your vehicles, monitor the leasing rates on a regular basis to ensure that they remain competitive throughout the life of any contract.
There are plenty of challenges when it comes to leasing contracts, from being able to get yourself a good contract to understanding why the rates vary so much, both between suppliers and during the life of the contract itself.
Perhaps one of the most common questions amongst fleet managers is ‘who is using what and why?’ when it comes to finding ways to cut down on fleet vehicle costs. Well, the answer lies in vehicle allocation.
You might want to challenge why some of your employees are provided with vehicles, especially if they don’t meet the defined criteria for provision, such as a required annual business mileage or a clear job need.
Review your fuel policy
While your vehicles are your fleet’s greatest expense, you’ll find much of that expense is made up of fuel costs. Cutting down on fuel costs is essential and could develop into a long term project if fuel is an immediate concern for you, but there are some simpler steps which should provide more immediate savings.
For smaller fleet owners, ensuring drivers purchase fuel from the cheapest garages is perhaps the easiest way to cut down on fuel, but if you really want to take a big chunk out of your existing fuel costs, you might want to look into getting a fuel card for your vehicles which keep track of fuel usage.
If you own a larger company, a fuel consultant wouldn’t be a bad hire – as it’s been predicted that a specialist in fuel would be able to save a big company up to £500,000.
Of course, one way to help you review your fuel policy is with a high quality fuel management system and here at FuelTek, we can provide you with one! For more information, contact us on 01254 291391 and speak to one of our professional team today.