Many small businesses rely on a company van or car to make deliveries, carry equipment, and visit clients. It is an essential tool and a legitimate business expense, but the running costs can be prohibitive when cash flow is tight. You must try to minimize your operating costs when running a business. The higher your costs, the more they will eat into your profit margins. Whether your business decides to apply for fleet fuel cards to help reduce the cost of fuel or your business creates a driver’s policy which rewards drivers who save on fuel, both methods are great ways to reduce your vehicles running costs. To learn more about how your business could reduce its vehicle running costs, read on.
Switch to a Smaller Vehicle
Consider how large your current vehicle is. If you own a van, could you manage with a smaller one? It will be costing you more in fuel, servicing, and other costs if the vehicle you run is bigger than you actually need. Smaller vehicles are often cheaper to tax and insurance, which is a significant saving each year. Investigate how much you could save by trading in a larger vehicle for a smaller one.
Make Savings on Servicing Costs
The cost of servicing company vehicles can soon add up. Rather than paying over the odds with a dealer service, see if there are any local garages, such as Your New Van, that can offer you a discount for van servicing Winsford. The more vehicles you have, the greater the likelihood the garage will be willing to negotiate.
Implement a Maintenance Schedule
Not keeping on top of maintenance might seem like a great way to save money but, in the end, it will cost you more. Small problems usually turn into big problems that are more expensive to fix. Keep track of when you replace tyres or brake pads. Have a system in place whereby you don’t just buy consumables like tyres from the nearest dealer. Instead, you shop around for the best prices.
Shop Around for Insurance
Insurance is a necessary evil, to protect your assets and also other people. While you can’t eliminate the cost of insuring company vehicles, you can save money by shopping around. Try using insurance comparison sites if you only have one or two vehicles. For more specialist vehicles or a fleet of them, contact an insurance broker to see if they can offer you a cheaper quote.
Drive More Efficiently
Driving like a maniac might get you from A to B quicker but it won’t save you money. Driving fast and braking hard uses more fuel and wears out brakes and tyres faster. It is also more likely to acquire speeding tickets, which are expensive, both from a fixed penalty and an insurance perspective.
Speak to an Accountant
Some ways of buying company vehicles are more tax-efficient than others. For example, it might be more cost-effective to lease a vehicle rather than buy one outright, as then it is considered an asset rather than an expense. You may also run into problems if you use the vehicle for personal journeys as well as business use. This is where the advice of an accountant can come in very useful.
Business vehicles don’t have to be prohibitively expensive if you follow the tips above.
