It’s easy to focus simply on the costs of acquisition, or, in turn, to relentlessly squeeze as much utility as possible out of each vehicle, even beyond its useful life. We have found what works better is to consider all vehicle expenses: fuel, maintenance, risk management, taxes, interest and, of course, depreciation. This allows you to balance total costs against your need for budgeting, operational performance and even brand reputation.
It’s an approach that also allows for something we call “right sizing,” ensuring the vehicles your employees drive match their needs. In truth, many fleets could easily get by with less costly vehicles, while others may need to upgrade when vehicles are overloaded.