How To Cut Your Business Vehicle Expenses

How To Cut Your Business Vehicle Expenses

Business vehicles cost a lot of money to run. Fuel, repairs, maintenance and loan repayments all add up. Thankfully, there are ways to cut down costs while still enjoying the benefits of having a business vehicle. Below, we round up some of the best.

Use a fuel card

Fuel cards or fleet cards allow you fill your vehicle with petrol without using cash. It’s pretty similar to swiping a credit or debit card. These are widely used by business owners, especially those with more than one vehicle, because they make it easy to keep track of their fuel purchases through a single monthly invoice of all their transactions. A fuel card is a great budgeting tool for small and large businesses alike. Additionally, a fuel card can offer discounts on petrol and help you to analyse your fuel consumption so it is easier to cut down. If you have a fleet of vehicles for your business, a fuel card will help you distinguish which vehicles are using the most petrol. 

Monitor your vehicles

As a business owner, you should be able to keep a close eye on all of your vehicles and determine how much fuel they are using on particular routes. This will help you to budget and quote more accurately. 

Choose reliable vehicles  

A reliable vehicle may cost more at the start but it will save you money in the long run. Read car reviews online and reports by motoring organisations to find the most reliable vehicle for your needs.

Review your car insurance

If you stay with the same insurer for years you will end up paying the "lazy tax." You will be surprised how much you can save if you look around for the best quote each year instead of staying put. Unlike many utilities contracts and loans there are usually no extra fees for switching your insurer so it is easy to determine if moving will save you money. Many insurers will also match quotes if you tell them you got a better offer. 

Do regular maintenance

Neglecting maintenance can save you money in the short run but in the long run it will cost you dearly. Service it by the book and you will avoid costly breakdowns that cost far more than a service and deprive you of the vehicle while it is repaired.

Get the best value loan

Just like home loans and credit cards, fees and interest rates vary widely between different lenders. Shop around online and avoid the mistake of just taking the finance your dealer offers. This also removes one of the dealer's bargaining chips so you can get a better price. 

Final word

Business vehicles are a vital tool but also a major expense, with the biggest cost typically being the loan repayments. Cut down costs by finding the best value loan, getting a reliable vehicle and maintaining it well.

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