A vehicle fleet may be a necessary component of your business operation: transporting goods, services, employees and more between locations for a lucrative outcome. However, it is essential that you are aware of all the ongoing expenses involved with company cars so that you are not caught unprepared or financially sunk and unable to keep up with the necessary costs. Here are a few expenses you should keep in mind for your vehicle fleet.
Insurance and Fees
Each car is at equal risk of harm and accident, regardless of the durability of the vehicle or the reliability of the driver. Insuring each car and covering all the existing fees is an essential precaution to protecting your vehicles, your drivers, other people, and your business. The cost of insuring a single car within a fleet is often cheaper than insuring a car independently—look for deals that will be most cost effective for you while providing the necessary coverage for your cars. In addition, remember that every car will need to pay registration fees, commercial vehicle licensing fees, and potentially more, depending on your location.
Automobiles require regular maintenance measures to ensure their smooth function and longevity. From oil changes to brake checks, tire rotations and even small details like headlight restoration and air filter cleaning, there is a long list of upkeep tasks that require a substantial amount of funding. Aesthetic maintenance may be necessary as well, to keep your car looking professional. You can find ways to improve or repair your car’s exterior without breaking the bank. For example, installing a car wrap is cheaper than painting your vehicle. While maintenance investments may feel steep, they will save you the even greater potential cost of replacing a car that doesn’t function due to neglect.
Gas prices fluctuate constantly and are highly dependent on where you are located. However, any unit price will add up very quickly! One of the largest and most frequent expenses you will make for your fleet is for fuel. You can reduce the amount of fuel expended by your cars by maintaining your tire pressure, driving the speed limit, and getting rid of as much weight as possible within the vehicle. Make sure you set aside a significant chunk of your car budget each month for the gas it will take to get you where you need to go to keep business running.
Make your fleet an asset to your business and not a burden! Budget well and take into account what maintenance is necessary to get the most out of your cars. Company vehicles are a long term investment, so they’re not something to get into without research!
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