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Car fleet management: The costs and how to lower them

Are you involved in car fleet management? Then you have a range of costs to consider.

First, there’s direct costs: things like depreciation, interest, vehicle repair, maintenance, tyres, fuel consumption, insurance and tax. Then, you have indirect costs: things that are much harder to calculate but can have a significant impact on your business’ profitability.

This guide takes a look at some of the costs of running a car fleet. Then, it shows how digital solutions can help you keep them under control.



In the UK, 20% of the total cost of ownership of car fleets comes from fuel. That makes managing and minimising fuel consumption a top priority for anybody in car fleet management. Given the volatility of fuel prices, however, it’s easier said than done.


Companies share responsibility for ensuring vehicles are maintained and safe to operate. This means fitting vehicles with essential safety equipment, ensuring regular service and maintenance checks take place and responding to issues identified by your drivers. This adds to both your direct and indirect costs, as the increased administrative burden and planning involved can distract from core business when done manually.


Driving is inherently risky and accidents are a possibility even for the safest driver. This can lead to various different costs, from insurance premiums to repairs to vehicle downtime

Unpredictable costs

The costs that are harder to measure can often feel even more difficult to control. Consider the following examples:

  • The cost of staff being off work after an accident
  • The time lost due to repairs and servicing
  • The loss of revenue due to your employees being stuck in traffic
  • The cost and reputational damage of missing a meeting or being very late to a meeting
  • Fines passed down if it’s found you did not fulfil your duty of care
  • Your employees committing driving offences while using company cars that lead to increased insurance premiums


Put simply, a fleet management solution gives you the data and tools you need to raise efficiency in many of your major cost areas.

Fuel management

A car fleet management solution gives you clear, understandable access to crucial data regarding how your team are using their vehicles. This helps you zero in on habits and behaviour that could be wasting fuel, such as idling, and take steps to make your team’s driving more cost and fuel efficient.


With a telematics system, maintenance can be pre-scheduled based on real-time mileage information rather than time intervals. Schedules for oil changes and tune-ups, for example, can be followed with minimal disruption to your core business. So, wear and tear is minimised, lifespan is extended and vehicle safety is optimised with less administrative work.

Telematics can also provide vehicle diagnostics information, giving insight on the condition of a vehicle and enabling you to act before something goes wrong. That helps minimise downtime and repair costs.


Telematics solutions give you an overview of your fleet in near real-time. They help you get the right person to the right appointment, taking into account weather, traffic and other factors that might unexpectedly slow things down. This helps you run a more productive and cost-efficient operation with better ETAs, less time spent stuck in traffic and less chance of missing important meetings.

Want to find out more about how car fleet management costs can be lowered with a digital solution? Then speak to one of our experts today.

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