There are many industries that will require a fleet of vehicles and this will be a key part of a business’s operations. If you are considering investing in a fleet, then you need to carefully consider your options as this will be an enormous investment and one which you need to get right. Here are a few of the key aspects to consider:
Buying in Bulk
Fleet purchasing is a smart financial move if your vehicle needs an upgrade in size or you are just starting out. This is because you can make large savings when you purchase an entire fleet of vehicles instead of one at a time. This is called fleet purchasing and dealers will offer savings when you purchase 3+ automobiles (the exact amount will depend on the dealer).
Vehicle Type
First, you will want to think about what type of vehicle to invest in. This will depend on your particular industry and the purpose of the vehicles, but you may want to consider aspects like wheelchair accessibility, particularly if you are offering transportation to the public. Wheelchair accessible minibuses can be a smart investment for businesses and are available from specialists like Allied Fleet.
Finance Options
Of course, investing in an entire fleet of vehicles can cost a huge amount even if you are making big savings. It is for this reason why it may be easier on cash flow if you opt to lease the vehicles instead of purchasing them outright. Leasing brings a host of benefits, including that you can upgrade after a few years and you do not have to worry about depreciation. The main drawback of leasing is that you will not be able to make any modifications (such as adding a company logo) and there may be mileage limitations which could be problematic. There are perks to both buying and leasing so think about what is best for your particular operation.
Insurance
Insurance is another key cost to consider. You will be able to obtain fleet insurance, but this may cost more if you will be storing all of the automobiles in one place.
Tax
If you or your employees use the vehicles for non-business-related matters, then you will need to pay a road tax which means that it is a smart move to have the fleet limited to work-related purposes only.
Fuel
Fuel is another major and unavoidable expense. You could opt for eco-friendly vehicles, but you might find that these are not suitable for your business, so you need to find an automobile with the maximum fuel economy that meets your needs – this is called “right-sizing”.
Maintenance Costs
Maintenance costs can be significant and especially for a large fleet. You may find that the costs of maintenance are included in a lease or finance package so always look into this when weighing your options as it could save you a fortune if you find a package with costs included.
These are the key considerations to make when investing in a fleet for your business. Keep in mind that you’ll also want to keep track of your fleet, so invest in the proper equipment to do so. Overall, it is an enormous expense, so it is vital that you make sure that it is the right decision and that you consider all of your options.
