When you’re running a business, it’s important to minimise your costs when maintaining your operations. For example, you’ll want to determine whether it’s more cost-effective to lease vehicles or to purchase your own fleet of company cars or trucks.
Similarly, you’ll want to ensure that your assets are well-maintained. As well as minimising downtime and repair costs, this can help to increase the lifespan of your fleet and reduce the risk of accidents.
If you want to reduce your costs, take a look at these handy tips to help you save money on business vehicles.
Estimate Your Mileage
How many miles your fleet will be covering is an important factor when determining whether to lease or buy your vehicles. Many lease contracts only cover a relatively low amount of mileage, which charges extra for every extra mile driven. If your fleet is going to be on the road a lot, it may be more cost-effective to buy the vehicles outright.
Determine How Vehicles Will Be Used
There can be tax advantages to both leasing and buying company cars, but the rules are complicated. If your staffs are permitted to use company vehicles for personal use too, this will have an impact on what costs you can claim back. Before you decide how to finance your fleet, it’s worth getting financial and tax advice from an accountant and/or tax attorney.
Protect Your Vehicles
Adding the latest tech to your fleet can help to keep vehicles in good condition and it should minimise the risk of accidents too. With the best dash cam, parking sensors, and autonomous emergency braking (AEB) systems; you can reduce the risk of incidents on the road. If an accident does occur, having a dash cam installed in the vehicle will ensure it’s caught on tape. This information can be used to determine exactly how an incident occurred and who is responsible for it (which can save your company a significant amount of money in the long run).
Brand new vehicles can depreciate quite quickly, which means they don’t hold their value too well. If you’re considering buying your own fleet, you’ll need to decide what impact this depreciation will have on your business. In some cases, it’s possible for the depreciation of assets to reduce your tax liabilities. Of course, you’ll want to discuss the ramifications of this with your accountant before you make a final decision.
If you buy your fleet, you’re going to be responsible for maintaining it. However, if you lease, the leaseholders may offer some or all vehicle maintenance. You’ll need to consider which option is most beneficial to your business and whether you can finance in-house maintenance or whether you’d want to outsource this to another company.
Reducing Fleet Costs
With the right amount of research, you can successfully save money on business vehicles. Whether you choose to rent or buy your fleet, your vehicles are an important business asset. Hence, it’s well worth seeking specialist advice before you take the plunge.