What's the difference? And how do fleet managers avoid making the same mistake? Fleet operators have to juggle a lot of different things. This is especially true if the fleet operator is the owner of the company, which is usually the case with smaller companies. It's easy to keep track of your fleet's main expenses, but if you want to know the details of the actual cost of the vehicles in your fleet, it takes a lot of time and effort. Most business owners don't have that time, so Deboer's Auto is here to help you manage and control your fleet costs.
Depending on the area, charging a fleet of electric vehicles can cost much less than one with internal combustion engines. Understandably, most business owners don't have time to thoroughly assess and analyze the cost of their fleet. We evaluate all the miles each vehicle travels each year and break down the costs in cents per mile. As a side note, one of the proposed advantages of switching to an electric vehicle fleet is that, although the initial costs are higher, fleet managers can save a lot on maintenance and reduce overall TCO.
It's the best way to understand exactly how much money a particular vehicle costs you so you can make the best decisions for your business in the future. However, to create your fleet budgets and plan for the future, you'll first need to account for each of your fleet management costs. The result is often to spend money on fleet vehicles without thinking twice, when large expenses could be avoided in favor of smaller preventive expenses. The TCO can tell you a lot about your operations, including when to remove a specific vehicle from the fleet.
To maximize profitability and optimize fleet efficiency, you should regularly conduct an analysis of fleet management costs. To perform a fleet management cost analysis, you need to know the total cost of ownership of each of your employee's vehicles. Once you know the total cost of ownership and utilization of the different vehicles in your fleet, you can start looking for outliers. Understanding the real cost of a vehicle or asset, including start-up costs and ownership costs, can help you get the most out of your budget and help your fleet operate more efficiently.
We also need to think about how these costs could increase as vehicles approach the end of their useful life.