A fleet of vehicles can be expensive to manage, however there are ways in which you can cut costs. Here are some of the ways in which you can afford a fleet for your business.
Weigh up finance options
Buying multiple vehicles outright could cost hundreds of thousands of dollars. As a result, you’ll likely need to explore your finance options. You may be able to buy a fleet on finance, but will likely still need to place down a deposit (which could be high). Leasing could work out initially cheaper if you’re on a tight budget, plus you can upgrade your vehicles at any time. The disadvantage of leasing is that you won’t own the vehicles and could pay more in the long run. All in all, buy on finance if you want to save money overall, but lease if you want to save money initially.
Select your drivers carefully
Hiring good drivers is essential for keeping costs low. Drivers with a poor driving history (e.g. a history of claims or driving penalties) will be more expensive to insure. You could also be taking a risk by taking on these drivers, as they could be more prone to accidents or driving penalties. Make sure to check applicants’ driving history before hiring to avoid these issues.
Monitor your drivers and reward efficient driving
You can encourage drivers to use less fuel and rack up less mileage by monitoring them and by rewarding efficient driving. Technology such as GPS fleet tracking can keep an eye on the routes your drivers are taking to ensure that they’re not taking unnecessary detours. You can also keep a record of each driver’s MPG. Meanwhile, providing rewards such as bonuses for economical driving can help to further encourage drivers to be more efficient.
Shop around for fleet insurance
You can save money on fleet insurance by comparing rates of different providers. It’s worth checking this annually before renewing your policy to ensure that there aren’t any better deals around. There may also be ways of bundling your fleet insurance with other types of business insurance to save further money. Make sure to look beyond comparison sites.
Service vehicles regularly
By servicing your vehicles, you can spot problems early and make repairs before they get serious. Vehicle faults can often get more expensive to fix over time – worn parts can have a knock on effect on other parts. Schedule servicing in advance so that you can make plans around it such as hiring a stand-in vehicle or warning clients. You should also encourage employees to log any faults that they notice while driving.