A fleet of vehicles can make a business more efficient. It can help a company get cargo to its customers faster, which can boost revenue. But it can also add to overhead costs if it is not managed well. To minimize these expenses, a company should take several steps before starting a fleet car business.
First, determine what type of vehicle is needed. A business may need a small passenger vehicle for employees to run errands or an SUV for carrying cargo. It is also important to find out what insurance coverage is required. Some dealers offer commercial fleet insurance that bundles all of your vehicles on one policy, which can save you money. However, it is advisable to look for a policy with high liability coverage. This is because if an employee is driving a large load of merchandise and the vehicle gets stolen or damaged, your insurance will not be enough to cover the costs.
Next, decide whether to lease or buy the vehicles. Buying the vehicles will be more expensive than leasing, but it may help reduce cash outflow. If you decide to purchase, you should also investigate the tax and fuel costs for each vehicle. You can also shop around for different lenders, as some offer better prices for fleets.
Another cost to consider is tracking your vehicles, which can save you a lot of money in terms of fuel, maintenance and more. Other cost-saving measures include using economy vehicles, ensuring drivers use their vehicles efficiently, and keeping tire pressures inflated.