How Fleet Management Will Help You Manage Your 2022 Annual Budget
Invest in Your Company’s Financial Health: How a Fleet Management Team Can Benefit Your Bottom Line
For many, the start of a new calendar year means new outlooks, new goals, and new opportunities. The same goes for businesses, and just like we look to make improvements in our personal lives, companies are continuously searching for opportunities to improve the systems and processes that impact their bottom line. Where some businesses might see hiring an external fleet management team as an added expense, this article will explore how partnering with fleet experts is in fact a valuable investment that can pay for itself multiple times over.
Many different companies rely on vehicle fleets for their day-to-day operations, but that doesn’t mean they have the internal teams or expertise to run these programs as efficiently as possible.
Fleet management companies, like Motorlease, are experts in the automotive industry. Whether advising on the optimization of fleet cycles, providing insights on industry trends, or guiding your overall fleet composition, a fleet management company provides you with market expertise that will save your company time and money, and allow you to focus on what you do best. Motorlease has been a pioneer in the fleet management industry for over 75 years and has developed an unparalleled depth of knowledge and experience, helping customers make smart decisions when it comes to keeping their fleet on the road.
Economies of Scale
You’re likely familiar with the concept that spending more can sometimes be the route to getting you the best deal. Buy two? Get one free. Spend $300 in-store – get a $50 rebate in the mail. The same concept applies to fleet management, as manufacturers and service providers are willing to give up a percentage of their normal profit in exchange for bigger pieces of business.
Where your company might need to purchase ten cars in a year, fleet management companies purchase thousands of vehicles every year from a variety of manufacturers. This means they’re often able to get discounts above and beyond what a regular consumer could negotiate on their own.
These savings are then passed down to the client (that’s you!) not only through the vehicles themselves but through additional factors like maintenance and disposition. Using a fleet management company has the potential to save you several thousands of dollars per vehicle throughout its lifetime, and that’s math we can get behind.
Eliminating Costly Reimbursements Pitfalls
A common misconception when it comes to corporate vehicle fleets is that it’s more cost-effective to reimburse an employee for business use of their personal vehicle. Spoiler alert: this can actually be a budget-busting mistake.
According to industry research, 34.5% of reimbursed fleet drivers admit to inflating their business mileage on expense reports. The result is an estimated $2.8 billion annual loss to US businesses.
Many companies also mistakenly believe their liability exposure is limited under a reimbursement model when it can increase their risk with having to rely on drivers to carry proper business insurance policies, which they often don’t have due to the increased premiums.
This approach can have far-reaching budgetary impacts on other areas of your business, going as far as creating a costly hiring and retention disadvantage in comparison to companies that provide corporate vehicles to their drivers.
There are countless benefits to using a fleet management company, but arguably the most important is that it gives you access to a team of dedicated and trusted motor vehicle experts. This allows you to stay in your lane and avoid the stress, uncertainties, and potentially costly errors that can come with navigating the nuances of a complex industry that’s not your own.