There are several strategies you can use to save on the total cost of ownership (TOC). As you learn to be a better/smarter fleet manager, consider the following ideas to decrease your TOC.
1. Negotiate a favorable lease agreement: The terms of the lease agreement can have a significant impact on the total cost of ownership. Companies should negotiate for a lower monthly lease rate, favorable lease terms such as mileage allowances and maintenance requirements, and a lower buyout price at the end of the lease.
2. Choose fuel-efficient vehicles: Fuel costs can be a significant expense for a fleet of vehicles. Choosing fuel-efficient vehicles can help reduce fuel costs and lower the total cost of ownership. Companies can also consider using alternative fuel vehicles such as electric or hybrid vehicles to further reduce fuel costs.
3. Optimize vehicle usage: Properly managing the use of vehicles can help reduce maintenance costs and prolong the life of the vehicles. Companies can use telematics and GPS tracking systems to monitor vehicle usage and identify opportunities to optimize routes, reduce idle time, and avoid unnecessary wear and tear on the vehicles.
4. Implement a proactive maintenance program: Regular maintenance can help prevent breakdowns and reduce repair costs. Companies should implement a proactive maintenance program that includes regular inspections, oil changes, tire rotations, and other preventative measures.
5. Consider a shorter lease term: A shorter lease term can help reduce the total cost of ownership by allowing companies to upgrade to newer and more fuel-efficient vehicles more frequently. However, shorter lease terms may result in higher monthly payments.