Home Automotive Fleet Finances: The Insider’s Guide to The Costs of Running a Company Fleet

Fleet Finances: The Insider’s Guide to The Costs of Running a Company Fleet

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Fleet Finances

Businesses of all sizes rely on company fleets to keep operations running smoothly, but the cost of running a fleet can be daunting. As such, it’s essential to understand the basics of how a company fleet operates and what expenses you can expect so that you can budget accordingly. 

Here are six key areas that affect the cost of running a company fleet.

Transportation

Shipping fleet vehicles from one area to another can be a significant expense, particularly if you have a large or dispersed fleet. If your company is based in Canada but ships vehicles to the United States, you’ll need to factor in the cost of crossing the border.

In addition, if you use your fleet vehicles for interstate shipping, you’ll need to account for other costs. Knowing how to ship a car to another state is only the beginning. You also need to know the potential costs.

ELD compliance

The Electronic Logging Device mandate is coming, which means that if you want to use your vehicles for commercial purposes, you’ll need to purchase and install an ELD device. 

It can be a significant upfront expense, but it’s crucial to ensure that your business remains in compliance with federal regulations.

Fuel costs

Fuel costs are notoriously unpredictable, but they can significantly impact your bottom line. If your fleet relies heavily on gasoline-powered vehicles, you’ll need to keep a close eye on gas prices to budget accordingly. 

Diesel-powered cars tend to be more expensive to operate, but they’re also more fuel-efficient. These costs can vary significantly depending on the type of vehicles in your fleet and how often they’re used.

Maintenance and repair

All vehicles require regular maintenance, but commercial fleets have additional costs. For example, you’ll need to factor in the price of commercial tires, which withstand more wear and tear than passenger tires. 

You’ll also need to understand the cost of repairs and maintenance since this will affect your ability to keep your fleet running safely.

Vehicle insurance

If you’re using leased or borrowed vehicles in your fleet, you’ll likely be required to purchase commercial vehicle insurance

It can be a significant expense depending on your overall fleet size and the number of vehicles you’re insuring. Therefore, you’ll need to understand the cost of this insurance to budget for it accordingly.

Fleet tracking

Modern fleet tracking devices make managing your fleet much easier, but they also come with a price tag. Depending on how many devices you need and how much data you want to collect, it’s essential to factor in the cost of these devices when you’re budgeting for your fleet.

Wrap up

As you can see, there are a lot of factors to consider when it comes to the cost of running a company fleet. By understanding the basics of each of these areas, you can make sure that you’re prepared for the expenses involved. 

Then, with careful planning, you can keep your fleet running smoothly and efficiently without breaking the bank.

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