By: Travis Mjolsnes is the Director of Business Development – Small Business for GE Capital Fleet Services.
Do you operate a fleet of company vehicles?
If so here are the top 5 questions you should be asking yourself:
1. Is your company receiving the lowest vehicle pricing?
2. How do I reduce my repair and maintenance costs?
3. What are the key metrics I should be tracking?
4. Options for administering my fleet?
5. What are some fleet best practices?
Is your company receiving the lowest vehicle pricing?
• Depending upon fleet size and annual purchase you might qualify for OEM incentives
• Are you a member of a trade association? If so a large number have national OEM agreements
• Take advantage of model year end closeouts or model incentives to lower your costs
• Shop around and if possible work with a dealer that has a specific fleet sales department
How do I reduce my repair and maintenance costs?
• Take on an active role and create a process to ensure service record retention and review
• Put in place driver spend limits and approval process within organization
• Ensure preventative maintenance is being performed in a timely manner
• Work with a national repair provider to ensure lower costs and better warranty coverage
What are the key metrics I should be tracking?
• Depreciation which ties into acquisition costs along with an appropriate cycling pattern
• Actual fuel and maintenance expenses along with a goal to reduce spend
• Once you have total fleet spend focus on your actual cost per mile for operating your fleet
• Driver behavior (excessive idling, speeding, accidents, timely maintenance, personal mileage)
Options for administering my fleet?
• Outsource service provider depending upon fleet size and business needs
• Decentralized fleet should take advantage of national vendors
• Reimbursement program
• Driver allowance program
What are some fleet best practices?
• Create a robust driver and fleet vehicle use policy
• Trusting drivers with repairs and fuel purchases leads to abuse
• Share with employees the costs and impact their driving behaviors have on the bottom line
• Ownership and “running an asset into the ground” is not always the best option
Travis Mjolsnes is the Director of Business Development – Small Business for GE Capital Fleet Services.
Feel free to contact if you have any questions or need advise on managing your company vehicles 952-828-2563