How to Cut Costs When Building a Company Fleet

How to Cut Costs When Building a Company Fleet

Having a company fleet of vehicles can benefit your business in many ways. You can meet the individual transportation needs of your business and you can improve marketing through your vehicles. While it’s beneficial, it’s also expensive but there are ways to cut costs. 

Lease Instead of Buy 

If you lease your vehicles, you give yourself a lot more flexibility. You aren’t stuck with a vehicle long-term. Instead, you lease for a short period of time and then you can upgrade to a newer model. This leaves you with better quality vehicles and it improves your public image. With a leased vehicle, you also don’t need to worry as much about maintenance. Major issues can be taken care of by whoever you partner with when leasing. Additionally, newer vehicles will have fewer maintenance needs anyway. Monthly payments will be lower when you lease and you don’t need to worry about the value of your vehicle depreciating. 

Look for Tax Breaks 

As with many things in business, you can find ways to get tax breaks or even tax write-offs. Making the right choices can save you money when it comes time to pay taxes. You can claim tax credits for electric vehicles under the Inflation Reduction Act. Using electric cars has a positive impact on the environment and the government rewards the choice to use these vehicles. Additionally, this will improve your brand in the eyes of the public. Some vehicles can even qualify you for a 100% tax deduction of the price. As you build your company fleet, do plenty of research about the benefits you can receive. 

Establish Good Practices 

When using your fleet vehicles, you want to decrease costs as much as possible. While building your fleet, you need to instruct the drivers on energy efficiency to decrease the cost of fuel. You also need to instruct them on how to care for the vehicle and drive in a way that won’t damage it. When you drive a vehicle properly, you decrease the risk of accidents and the risk of damaging the car. This reduces your maintenance costs. If you create good practices up front, it will decrease the amount of money you put into your fleet over time. 

Your fleet can do a lot for your business. Finding ways to reduce costs can make it easier to build and manage your company fleet. Take your time as you build your fleet and make the best decisions for your business. 

Did you enjoy this article? Here’s more to read: How to Save Money on Equipment Costs

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