Managing the car fleet of a business is a lot more challenging than some might think. After all, there are a lot of costs that you need to consider. From insurance fees to fuel expenses, they can all add up quickly and put more than just a sizable dent in the bank if left unchecked. But while dealing with the costs associated with company cars is an unavoidable reality – especially for those that rely on their use – it doesn’t necessarily mean that you can’t budget and reduce your expenditure in this area of your business. And in this article, we will discuss a few ways in which you can keep costs at a reasonably low level without making any compromises on your commercial vehicle loans.
1. Focus on practicality
When selecting vehicles to serve as your company cars, it’s critical to focus on practicality. You don’t necessarily need the fastest or most luxurious models. After all, they’ll serve little more than a mode of transportation. And there’s hardly any point spending more than you need to on vehicle insurance and fuel costs. So always stay practical when choosing a vehicle. It will save you money.
2. Considering leasing
Vehicle ownership requires a considerable commitment of financial resources. There’s no getting around this fact. So if you’re working under a tight budget, one of the ways to reduce your expenses is through leasing. After all, not only can will it make higher-quality brands much more affordable. But you’ll also avoid spending a small fortune on the upfront cost and monthly payments of purchasing a vehicle outright.
3. Make sure to record all of your driving expenses
There’s a good reason why it’s vital to record your driving expenditure. After all, they’re tax-deductible. So don’t throw away your receipts, whether it’s your fuel expenses or maintenance and repair fees. In this way, you or your accountant could potentially work out all of the tax deductions for your company cars.
4. Make it a habit to shop around for your car insurance
When it comes to insurance, it’s a general rule of thumb to shop around first before deciding. After all, the rates for company cars are generally higher than those for personal vehicles. And you can drive the costs down considerably by exploring every avenue first and creating a shortlist before making your choice. Tedious as it may be, you’ll be surprised at how much you can save on your company car’s expenses in doing so. In an unlikely event that an accident occurs, don’t forget to have a San Diego car accident lawyer ready in your contact list that will walk you through the claims process.
5. Enforce strict rules for all your employees
For your employees who drive the vehicles, it’s essential to lay down some ground rules. After all, it can help you save on your company car’s costs. From turning off the engine when not in a stationary position or choosing specific routes to avoid getting stuck in traffic, time taken in enforcing some rules will save you money in the long run.
It’s not hard to blow the budget on company car expenses. But with the strategies listed above, not only will you save on your business’s vehicle costs. But do so without pulling your hair out in the process.