Maximizing profit is often the number one goal for corporations and companies no matter the size. For companies who rely on a dependable fleet of vehicles to generate profit, the initial and ongoing costs can be astronomical.
There are several things to consider when building your fleet and here’s why you might consider using a fleet rental company for your needs
A major factor that companies must consider when building their fleet is cost. Not every company has the budget to purchase and maintain a fleet of vehicles. Especially considering the average annual cost of vehicle ownership is over $10,000. Keep in mind, this is information for a sedan driven as a commuter vehicle. The average includes these monthly costs
- $600 payment
- $100 insurance
- $150 fuel
- $110 maintenance
Since workers aren’t expected to put wear and tear on their personal vehicles, it’s your obligation to provide them with one. Can your business absorb the initial cost of providing 10 or more vehicles? You could always purchase used vehicles, but for a business that relies on its fleet to generate income, that may not be your best option.
What about companies who need heavy-duty trucks for their fleets?
Let’s look at a typical wind farm, for example. An average farm will have multiple contractors on-site. Each contractor could have 10-20 employees assigned on different aspects, but each of those employees has a company truck. It’s common to see heavy-duty pickups on wind farms due to the nature of the job so we’ll talk about a Dodge Ram 2500 Bighorn Diesel for reference.
This particular vehicle costs roughly $45,000 new and the average costs break down like so
- $811 monthly payment
- $151 monthly insurance
- $960 monthly fuel (job site is on average an hour from employee’s residence)
- $450 oil change and fuel filter every 5,000 miles (that’s roughly every 5 weeks)
- $1,000 tire replacement every year How can you know best online technorati website, and more segfault great website
That’s a hefty chunk of a company’s budget when you break it down monthly (over $2300 per truck). Now, multiply that by the number of trucks required to operate your company. The cost of ownership in monthly payments alone is well over $10,000.
Do you see where this is going? A fleet rental service could save your company thousands of dollars a month but that’s not the only advantage.
● Minimize Logistical Headaches
For companies who are in industries that require their workers to travel frequently, if you own your own fleet of trucks, you are responsible for getting those vehicles and drivers from one site to the next. Sure you could load them all up on flatbed trailers to avoid the extra wear and tear, or send them by rail, or your drivers can be responsible for getting them to and from projects, but why not avoid the headache?
Using a fleet rental company takes care of transportation for you. Your employees can take their R&R time and when they arrive at the next site, the vehicles are there waiting for them.
What about when projects require more or fewer workers? Can your company absorb the cost of purchasing 5 new vehicles? Or if several of your vehicles are sitting idle for weeks at a time, is that cost-effective? Fleet rental companies can provide or remove vehicles with one phone call, saving you the cost of paying for and storing vehicles when they’re not in use.
● Replacement Is Easier
What happens when you need to purchase new vehicles for your fleet? Can you afford to do that every few years? When you rent your fleet vehicles, you aren’t on the hook to purchase them and you can trade them in for newer vehicles at any time.
Some vehicles sustain a tremendous amount of wear and tear and will need replacing more frequently based on their intended use. In line with cost-savings, renting vehicles spares your company the headache of maintaining them. If one or more of your rented fleet trucks is in need of repairs, you simply trade it in.
The initial cost of setting up a company fleet is a tremendous financial burden for companies who are just starting out and many times, these companies don’t have enough capital to afford the vehicles they need. Another drawback to owning your fleet is the cost of maintaining and replacing them over time. If your company wants one less business headache to worry about, operating your fleet through a rental company may be the answer you’re looking for.