How to reduce your company’s vehicle fleet costs

How to reduce your company’s vehicle fleet costs

1280 853 Dominic Whittington

Whether you’re a small company or a much larger and established business, the cost of running a vehicle fleet is one of the largest overheads that has to be faced. It costs a great deal of money to buy these vehicles in the first place, fuel them for their journeys and keep them maintained by dealing with any repairs or damages. Fortunately, there are a number of ways to run your fleet more efficiently while making vital savings for your business. Take a look at our list of tips for reducing fleet maintenance costs and optimising efficiency below.

Insurance

Managing drivers’ behaviour is a practical way to achieve cheaper insurance. Less accidents mean less claims as incident history is a major factor when determining insurance premiums. As mentioned, ensuring drivers are well-trained is a good way to manage incident rates but it may also be worth installing a telematics device in your fleet vehicles.

Such systems are highly effective when reducing fleet costs as they are able to monitor drivers’ behaviour and the position of a vehicle. This data can in turn prove to an insurer how safe your drivers are and in the case of theft, speedily return the vehicle. Telematics may even help to improve safety levels as drivers, aware of the on board system, tend to be more cautious when driving.

Reduce Fleet Costs

Fuel efficient driving

Improved awareness about fuel efficient driving amongst your employees could make a huge difference to your company’s fuel costs. This is vital if you have a sales team driving up and down the country on a daily basis. Advice about better use of gears, sensible driving when it comes to speeding and braking, reduced use of the air conditioning and ensuring tyre pressure is correct can all contribute to greater fuel efficiency and in turn, reduce fleet operating costs.

On the topic of drivers, the costs incurred from traffic accidents can have a significant impact on fleet budget. On top of dealing with a claim and its subsequent effects on your fleet insurance, repairs and employee injuries can also prove to be costly. It’s therefore important to take some preventative measures and ensure that all drivers are well-trained.

Streamline your fleet

The best place to start when considering your vehicle fleet costs is by looking at the size of the fleet itself. By holding onto vehicles that you don’t require you are spending thousands of pounds that could otherwise be saved or spent on more important projects. Investigate whether certain employees really need a company car or if vehicles can be pooled.

It’s also worth looking at what your fleet is actually made up of. Older vehicles are likely to cause more problems as they tend to be involved in more claims and require a lot more maintenance and repairs. When you continue to run a vehicle past its optimum life cycle, the amount you end up paying out in order to maintain it could ultimately outweigh the cost of replacing it. Added to this, older vehicles tend to have a lower fuel efficiency than newer models. So, removing them from your books will reduce costs and help to save on fleet insurance.

Reduce Fleet Costs

Invest in an engine performance optimiser

A key driver for fleet taxation in the UK is based upon the level of CO2 emissions produced by your vehicles. So, it’s in your best interest to reduce your emissions in order to lower your fleet costs. Whether your fleet is large or small, changing in each of the vehicles for less polluting models is probably not an option. Instead, opt for the hassle-free process of installing a device that will reduce your emissions without losing out on time and money.

Installing one of Sustainable Flow’s Engine Performance Optimisers in each of the vehicles in your fleet, be it petrol or diesel, will make engines cleaner and cause them to run more efficiently. While this will result in a 50% reduction in carbon emissions it will also generate an average fuel saving of 10% per vehicle.

Sanctioned internationally as emission reduction equipment, the system maximises combustion efficiency and increases horsepower by more than 5%. So, on top of reducing your company’s carbon footprint, you’ll also be contributing to some serious long-term cost reductions for your fleet.

1 Comment
  • It’s great that you mentioned that holding onto unused vehicles is just costing extra money that could be spent elsewhere. My wife has a company car, and it sparked my curiosity. Thanks for the information-I feel like I know much more about commercial fleets and cars than I otherwise would have!

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