Buying Fleet Vehicles-Everything you need to know

 

Many businesses deal with a commercial fleet ranging from car rental companies to industries. In addition to fleet management systems, vehicles (units) play a huge role in overall profitability. An efficient group of automobiles can perform more tasks in less time, enhancing productivity. Therefore it is integral to select the fleet carefully.

Although the requirements vary from business to business, the basic things to look for remain the same. For example, the fleet creation has some SOPs and they are followed everywhere. We will let you know about the important aspects to consider before buying fleet vehicles in this blog. 

Things to consider before buying a vehicle:

Keep the purpose in mind:

Every unit selected in a commercial fleet has an intended use. It is essential to keep that in mind before buying or leasing. For example, if the intended use is transportation, you require trailer trucks or something of that sort. As a manager, you should do extensive research on all the vehicles that serve your purpose. Try to find out their pros and cons to select the best possible option.

Gauge the Cost:

Regardless of the scale of a business, saving operational cost is everyone’s priority. There are many factors to keep in mind while estimating the cost. It involves not only the worth of the unit but also the expenses that will follow, including taxes, insurance, maintenance cost, fuel expense, etc. Total cost ownership is a term used for estimating the overall cost. It includes all the direct and indirect expenses related to the vehicle.

Check the Safety:

It is vital to estimate the safety of an automobile before buying it. If a unit is safe, it has a lesser probability of getting into an accident, reducing its downtime. It also decreases the maintenance and repair cost, proving to be really beneficial for the business’s profitability.

You also need to ensure that the vehicle has all the antitheft features to prevent it from getting stolen. The key safety features to look for are locking system, seatbelts, airbags, stability control system, mirror view, anti-lock brakes, sensors etc. When all such features are integrated with fleet management systems, it offer more foolproof safety.

Read Also: Leasing vs. Buying Fleet Vehicles: The Pros and the Cons

Consider Maintenance and Repair:

The fleet maintenance is a big headache for businesses. It costs a lot and hinders the overall profitability. In addition to that, vehicle’s downtime reduces productivity. Therefore, before buying them, you should estimate the overall service and repair expense. It is wise to go for the technology that is sustainable with a lesser probability of malfunctioning. But how to do it? The answer to this question lies in extensive research.

Ideally, you should select automobiles that are less prone to accidents and have a history of lesser maintenance and repair needs. It is applicable for both buying new and old units. In addition to that, you should also devise an efficient maintenance mechanism like a fleet management system that reduces both cost and downtime. 

Insurance and Warranty:

As a business, you would want financial assurance in an emergency case. This could be achieved through a warranty or insurance. If you are buying a new unit, you should look for a warranty and ideally go for the one offering the longest duration. Similarly, insurance is vital for commercial automobiles as they are more likely to get into accidents. It is best to opt for an insurance policy that is safe as well as cost-effective.

Benefits of buying new vehicles:

Although fleet companies rely on buying both old and new units, the latter option is more effective. Let us look at some of the benefits of buying new units:

·       Sustainability:

A fleet business cannot update automobiles regularly as it is both inconvenient and costly. This need usually occurs when the units become inefficient due to wear and tear. By buying new ones, you do not have to face this problem. The new units are in prime condition, and they are not prone to malfunctioning. They do not require frequent service and repair, making them a sustainable option.

·       Better Return on Investment:

As vehicles are the backbone of fleet operations, their efficiency is essential. With new units, there is lesser downtime and more productivity. It results in generating better profits providing a great return on investment.

·       Enhances the business worth:

Leasing an automobile has no difference in the business worth as it is not your asset. On the contrary, buying enhances the worth as it becomes the property of the business. It is an investment that provides good revenue along with making a long-lasting asset.

Buying vehicles is an important task for a fleet business as the operations depend heavily on them. Being informed about different aspects is essential before buying units, and the information mentioned above can help you out.