Automobiles play a big role in any business. Whether it’s a service fleet or a selection of company cars, they can have some significant purpose. Of course, vehicles are expensive no matter what their purpose. If you’re using them in the business, it’s time to get smart about how you finance them.
Have a better policy
If you’re providing company cars, then there are quite a lot of costs to consider. They are the financial responsibility of the business, from financing to insurance, and there’s some special tax to be considered on top of that. However, there are options to reduce the burden of the costs on the business. For instance, you can make use of novated leasing. This means the employer makes lease payments from the employee’s income pre-tax, meaning both employer and employee save on the costs of the car.
Manage more in-house
If you’re using a fleet of vehicles, for delivering to customers, managing your logistics or anything else, then think about how you supply and maintain those vehicles. If you’re using gas stations and garages in the area, you could be spending more than you really have to. Instead, think about using commercial fuel solutions to cut the costs of the middleman that is the fuel station out of your supply. You can also consider hiring mechanics in-house as part of the business. Paying for employees rather than services is cost-effective if you need to use those services too regularly.
Don’t do it all yourself
However, there are times that relying on some outside help can be a lot smarter than doing it all yourself. For instance, you need to consider how you move your vehicles. Perhaps you’re scaling or moving to a new location or you want to move company cars if you’re attending an event in another state. The right vehicle transportation service might be a more cost-effective and secure way to get it done. Especially if you’re moving multiple vehicles, then having them all driven there individually is going to cost significantly more in terms of fuel alone.
Make sure they work as efficiently as possible
If you’re using a fleet to provide a service like those mentioned above, then how that fleet used is of vital importance when considering their potential return on investment. For instance, if they’re delivering goods, then you want to make sure you’re rarely (if ever) letting them on the road without a full load. Otherwise, you’re wasting fuel on a trip that could get more done in return. Similarly, if they’re taking inefficient routes, then they’re wasting more time and money. They might even cause more late deliveries or hold up the logistics of the whole business. GPS tracking, fleet management and telemetric technologies can help you keep on top of the routes and uses of business fleets and create more efficient routes for them.
There’s nothing you can do to stop the business’s vehicles from being one of the bigger regular costs you have to deal with. However, with the tips above, we can hopefully see you saving money by taking them a lot more seriously. Whether that’s how you finance company cars or how you take care of and make use of a fleet.