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  • Thursday 18 June 2020

    4 Ways To Reduce Business Vehicle Costs

    There are many businesses that rely heavily on vehicles, like courier companies, agriculture businesses, and construction firms. Many businesses also rely on traveling sales staff, and a lot of companies provide company cars as a benefit. If your business relies on vehicles, it’s vital that you consider the associated costs and find ways to reduce them. Running a fleet of vehicles can be incredibly expensive, especially if you are running large machinery, like construction or agricultural equipment. If you are not careful, high vehicle costs can lead to serious financial issues, but the good news is, there are some simple ways to save money. These are the best ways to reduce business vehicle costs.

    Buy Second Hand 
    The easiest way to save money on vehicles is to buy second hand. This is especially true in the construction or agricultural industry. That doesn’t mean you should be buying vehicles that are decades old, but even something that is 3 or 4 years old will be significantly cheaper because the value of vehicles depreciates rapidly. A lot of people are concerned about reliability when buying second hand and they worry that it will cost more in repairs. However, as long as you find a reputable supplier and check vehicles over before you buy, you shouldn’t have any problems. 

    Use Cheaper Fuel Options 
    Fuel costs are one of the biggest expenses associated with owning vehicles, but if you use cheaper fuel, you can save a lot of money. Get some red diesel drums and use that instead of standard diesel in construction and agricultural equipment because it is a lot cheaper. You may not be able to use it in vans and cars, but you could consider switching to electric or hybrid vehicles to save money there.

    Improve Route Planning  
    If you use vehicles for delivery, you can save a lot of money if you improve your route planning. If drivers take unnecessarily long routes, you spend more on fuel and more strain is put on the vehicle. Finding ways to shorten routes makes deliveries more efficient and cuts your vehicle costs at the same time. It may be worth investing in some route planning software so you can ensure that drivers are always taking the most efficient route.

    Use Vehicles As A Marketing Opportunity
    If you can use vehicles as a marketing opportunity, you can get some return on your investment and offset the running costs. Many businesses that provide company cars will use car wraps with company logos and information on. It’s a great way to maximize the impact of your brand, and it’s very cost effective. People often think that car wraps are an old fashioned way of advertising your business but they’re actually very effective and it’s a great way to get more utility from your vehicles. This is especially effective for construction companies because you will get a lot of work from customers that see your vehicles parked outside jobs sites.

    Business vehicle costs can quickly spiral out of control, but if you use some of these simple tips and tricks, you can make some big savings.

    Sifiso Nkwanyana

    Author & Editor

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