As home delivery becomes the norm for many business sectors, small businesses are starting to feel the push to get into delivery for themselves.
However, before you go out and buy a host of vehicles for a company fleet, you should know that there are both obvious and hidden costs to starting a company fleet.
Buying the vehicles
The first cost to consider has to be purchasing the fleet. Cars are more expensive than ever. The COVID-19 pandemic forced many car manufacturers to shut down their factories temporarily, and its effects are still felt today. The lack of chips for the car industry is another contributing factor forcing supply chain delays.
If you’re buying your fleet in another town or state or moving your company to a new location, you’ll need to transport the caravan. Using a trusted provider like Guardian Auto Transport to transport your new vehicles is a necessary expense that should factor into your budget.
There are hidden costs to running a company fleet. Business owners need to be aware of and understand various needs before starting their fleet. For example, many companies use fleet management software to track the status and location of different vehicles. This software runs on subscription services, meaning you’ll have to pay a monthly fee to keep these tools running.
You’ll also need somewhere to store the vehicles, such as a garage, when not in use. Vehicle storage solutions will cost either a monthly fee for remote storage or require you to build a facility on your business’s grounds, both of which can be expensive.
You also can let your employees take the vehicles home, but the cars won’t be as safe as in your facilities.
Owning a fleet means that you’ll have to maintain the vehicles properly. These vehicles will be in constant use and will need to be regularly checked by a mechanic so that you don’t lose any business.
Because the price of cars is high, many companies choose to keep their old vehicles. This situation will, in turn, raise the demand for maintenance services and consequently its cost.
Drivers’ background checks
It’s essential to ensure that the people who drive your vehicles are suitably qualified and don’t have prior driving-related convictions. Pay special attention to convictions for driving under the influence, traffic accidents, or speeding tickets.
Even though it’s more expensive, it’s safer to choose a detailed background check over a superficial one to prevent future liability problems to assess the driver’s capabilities.
With how varied different business sectors can be, there is no one answer to the cost of a company fleet. Business owners and their teams will have to sit down and figure out how many vehicles they need to meet demand before determining costs.
However, once you know how many vehicles you need for the fleet, you can start calculating general costs like fuel and licenses and hidden fees like storage and maintenance.