How you can save on the costs of your fleet vehicles

As we continue navigating the recovery phase of COVID-19 and business activity starts ramping up, the focus on cost–efficiencies remains as sharp as ever. In our December 2020 ‘The New Normal‘ Mobility Insights, 54% of the people surveyed from across Australia, Europe and Asia agreed with the following statement:  

“Since the beginning of the COVID-19 pandemic, I am more interested in finding ways to save on the costs associated with my car use.” 

When it comes to fleets, managing vehicles for cost-effectiveness can be a delicate balancing act. However, in finding ways to keep your fleet costs down, the following tips provide a simple starting point, if you haven’t adopted them already.  

Fit-for-purpose 

The full impacts of COVID-19 are yet to be fully recognised. As your operating environment adapts to the way you and your organisation do business, maybe it’s time to assess whether the vehicles in your fleet are still fit–for–purpose?  

For instance, you might like to ask yourself: 

• Are there vehicles in my fleet beyond their use-by date in terms of the cost of keeping them on the road versus the cost of updating to newer models?  
• Do the vehicles in my fleet adhere to today’s exacting OH&S obligations?  
• Is my fleet comprised of makes and models with varying maintenance schedules? 
• Am I paying as little as possible for new or replacement vehicles?  
• Are my vehicles being used in the same way now as they were pre-COVID? Maybe more of my people are working from home and less are on the road? 

Concentrating your vehicle resources with a single vehicle leasing and fleet management partner is a more resource and cost-efficient way of assessing and managing your fit–for–purpose requirements. 

Additionally, concentrating your vehicle resources offers benefits in making maintenance scheduling more streamlined and cost-efficient, ensuring minor mechanical issues are identified before they become more expensive issues, and servicing completed in a more timely fashion in coordination with the dealer and your leasing partner.    

Utilisation

Assessing how efficiently your fleet is being used will go a long way to ensuring your fleet costs don’t spiral out of control. As the ways in which your business operations change to adapt to customer demands, you should consider whether the composition of your fleet is still appropriate. Maybe there are vehicles in your fleet that could be switched from an operating lease to a novated lease?  

Understanding the cost of keeping your fleet on the road is an important part of identifying where savings and efficiency gains can be made. Metrics and data play an important role in giving you the information to ensure you’re utilising your fleet in the most efficient manner.  

Implementation of telematics technologies can provide you with the kind of data that can help you and your drivers reduce the day-to-day costs of putting cars on the road, manage the driving practices for minimising wear and tear and fuel consumption, improve route management efficiency and promote responsible driving. Telematics can also help you identify mechanical issues that may require attention within a servicing window, ensuring that minor faults don’t become major issues that require costly repairs and extended periods off the road. 

In conclusion

Structuring your fleet in a manner that reduces the cost of running your vehicles will be more important than ever in a post-COVID climate. Understanding how fit-for–purpose your fleet may be and the utilisation of your vehicles, are some of the most important yet fundamental steps you can take to drive down the costs of doing business. 

For more advice and ideas on how to reduce your fleet costs, talk to LeasePlan today. 

Driving Insights