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Business fleet costs can quickly run away from you with improper management and administration. However, there are also unforeseen issues and even driver problems. So what are some of the hidden costs to watch out for when trying to manage a company vehicle fleet? From vehicle downtime and maintenance to tyre management, here are some prime examples.
Unapproved Non-Fuel Purchases
Fuel costs are pretty high right now and could get even higher because of current world events. Yet even though it is among the highest costs, some workers may even add non-fuel purchases to their fuel cards. These are extras, such as snacks, that your company has to cover. You can compare fuel cards to find the best deals for lower costs. However, it also helps to establish clear policies about using fuel cards in this way and strictly enforcing them when violated.
Vehicle Downtime and Maintenance
Just like a valued worker, a vehicle off the road will cost money. When it isn’t producing for you, it isn’t bringing anything in. In fact, it will be draining the bank account every minute. Repairs because of damage, an accident or even maintenance are common fleet problems, and will cost. However, the hidden costs come from the revenue the company loses while a vehicle is sidelined or the costs from missed service, such as reaching a customer or missing deliveries.
Driving Habits Add to Business Fleet Costs
The average cost of running one company vehicle in the UK can cost up to £10,000 when running costs and maintenance are taken into consideration, and that’s before paying the driver! Further to drivers, the way they operate the vehicle can also add to costs. For example, sharp braking, harsh acceleration and engine idling will cause more wear and tear and use more fuel. However, real-time vehicle tracking using telematics can provide data for making improvements.
Poor Vehicle Tire Management
Tires should be a top priority for any effective fleet management schedule, and specifically, tyre pressure. Tire pressure is often ignored, as most drivers just check that the tread is reasonable. However, under-inflated tyres, as well as being dangerous, will increase fuel consumption by up to 2% just by being 10% deflated. Yet there are other costs, such as replacing tyres too early before you have your money’s worth, and even selecting the wrong brand can have an impact.
Manual Business Fleet Administration
The days of arduous and tedious fleet management are gone. Fleet administration doesn’t have to be a chore, and it actually costs much more than automation. For example, manual fuel receipts, mileage claims and documenting fleet use for compliance take a huge amount of time and effort, as well as extra costs. But you can successfully automate your fleet management with apps such as Fleetio that will handle the most time and cost-consuming side of things.
Summary
Unapproved non-fuel payments are among the worst hidden business fleet costs that will drain the budget. However, even the way in which drivers use the vehicles can contribute to higher costs, but you can reduce some of the admin fees with business fleet automation software.
