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Four Fleet Management Costs to Keep in Mind

Four Fleet Management Costs to Keep in Mind

Does your company rely on a fleet of vehicles and drivers to visit clients, generate business or transport goods? If so, you’ll know how costly it can be to have them out of action due to damage or breakdowns.

At the same time, it’s important to have a full understanding of the various costs involved with keeping a fleet of commercial vehicles on the move. Read a quick summary of four key fleet management expenses to budget for below.

Insurance

It’s a legal requirement in the UK that all road vehicles have insurance. But standard insurance won’t cover commercial use, so you’ll need separate policies for your commercial vehicles.

This point doesn’t only apply to road vehicles either. Railway insurance can help protect your trains against explosion, breakdown or theft, for example.

Organising multiple policies can be an administrative nightmare, especially if creating separate policies with different providers and renewal dates. Having a general fleet insurance policy for on-road vehicles and additional cover for rail will save time and hassle.

Fuel Costs

The rising cost of fuel in the UK and beyond has been widely decried, with shifting wholesale prices leading to astronomical costs for the end-user. In this case, fuel is likely to be one of your main outgoings – especially if you regularly travel long distances.

Larger vehicles such as commercial trucks consume considerably more fuel than passenger vehicles, especially if you’ll often be driving with full loads. Driving style can also impact expenses, so educating your team on efficient driving is essential.

Staff Wages

Commercial driver shortages are another topic that’s hit headlines in recent times,with many companies lacking the willing drivers they need to fulfil demand. This point considered, you’ll need to pay your drivers a fair, living wage to keep them happy in your team.

Common options include hourly and per mile pay, with the right option for you likely depending on the nature of your work. You might want to offer allowances for meals and expenses too, especially if your drivers are spending long periods of time away from home.

Servicing

Regular servicing is important for maintaining any vehicle – but even more so when your livelihood depends on it. This way, you’ll catch small problems before they get bigger and more expensive.

The exact cost and ideal frequency of servicing will depend on the vehicles you’re operating, but whatever they are, maintaining your assets will help reduce your operating costs and downtime. It’s extra important if you transport goods and passengers too.

Have you accounted for these fleet management costs? As long as your budget is comprehensive and realistic, you’re unlikely to get caught out by nasty surprises further down the road.

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