What to Think About After Securing Financing for a Vehicle Fleet
Having a vehicle fleet can be very beneficial to your business. You’ve already done the hard part of securing financing, but now it’s time for some important decisions. It’s important to take some time to consider what to do now that you have funding for your vehicle fleet.
What is a fleet vehicle?
Fleet vehicles are groups of motor vehicles owned or leased by a business, government agency, or other organization rather than by an individual or family. Typical examples are vehicles operated by car rental companies, taxicab companies, public utilities, public bus companies, and police departments.
Securing Financing – Leasing v. Buying
The first step is deciding how to use your funding to actually purchase the vehicle fleet. The two main options are leasing or buying. If you’ve done a lease vs. buy analysis for a fleet before, you likely know that leasing is typically viewed as less risky than owning. But with added considerations like vehicle lifespan, annual mileage, interest rates on loans, maintenance charges, and vehicle disposal, the choice to either lease or buy becomes more complex.
When you lease, you will own the cars for a set amount of time while you make payments on them. This might be the option for you if you plan on only using the vehicles for a short time. This option is also good if you intend to replace vehicles often. Buying is beneficial if you have more long-term plans. You will own the vehicles and you also will have no limitations placed on how you can use them.
Getting Them Wrapped
After deciding on your purchase option, you can begin thinking about how to use your vehicles. One option is to get them wrapped. Doing so will allow you to create an advertisement that will be wrapped in the car. This is a great way to promote your business as the vehicles are driven around. Wrapping a vehicle can cost up to $2,000 or more depending on the size of the vehicle. If you are hesitant, just know that it is not as permanent as repainting a vehicle and it won’t damage the factory paint. In fact, the wrap can actually protect the original paint job.
WHY HAVE FLEET WRAPS?
Advertisements explicitly designed for business vehicles make your brand go mobile. If this sounds like industry fluff, think again. With Americans spending more time than ever in their cars, companies have a lot to gain when they direct advertising efforts toward those on the road:
- The average commute is now 26 minutes one way — and worse in many cities.
- The average driver travels around 37 miles a day.
- Over 90% of media positioned toward vehicle drivers gets noticed.
Translation? Installing fleet wraps on your business vehicles is a proven and cost-effective strategy to convert passive eyes into paying customers.
Managing Your Fleet
It’s important to think about how you want to manage your fleet. Of course, this will depend on the use of your vehicles. One option to consider is GPS tracking. This helps you see if your vehicles are on the proper schedules and routes. You also want to be mindful of safety. It might be in your best interest to train your drivers on proper safety. Additionally, you should make a plan to handle any maintenance and fuel needs. If you already have a lot on your plate, you can hire some specifically to manage your vehicle fleet.
Starting a delivery business and having a vehicle fleet is an excellent asset, but it does come with a lot of decisions. Before you move forward with actually purchasing your fleet, make sure you think things through. Create a plan for your vehicles so you can get the most out of them.
If you need financing, apply for some financing from us today!