Fleet management: What is the cost per vehicle?

Discover how to calculate the cost per vehicle in fleet management. Optimize your operations and reduce expenses with expert insights.

Managing a vehicle fleet involves numerous costs that must be carefully controlled to ensure profitability and operational efficiency. From repair and maintenance expenses to operational fees and car fleet price, each aspect requires meticulous attention and rigorous management. Here are tips from fleet management software provider hitechsoftware to help you optimize the costs of your vehicle fleet.

How much do fleet vehicles cost?

Many businesses ask, ‘How much do fleet vehicles cost?’ as they strive to balance operational efficiency with budget constraints. Maintenance and servicing account for 7% of fleet vehicle costs. It is made up of the costs of interviews spent as expense reports by users and interviews invoiced by third party companies with which your company may have a centralisation contract. In some cases, maintenance can be internalised, so it is necessary to calculate the vehicle fleet maintenance cost allocated to this position. In the case of a long-term lease, 81% of the contracts include a maintenance package.

Taxes represent about 6% of the total cost of fleet vehicles. This cost is made up of the bonus/malus on the purchase of the vehicle and the corporate vehicle tax (TVS), which is weighted by the vehicle’s CO2 emission rate and paid annually. It should be noted that certain vehicles running on clean energy can benefit from an exemption from this tax. To stay informed about the latest regulations, we invite you to visit this blog to keep up with the latest news in fleet management.

There are still 2 items of expenditure that are often overlooked in the calculation of the cost of a fleet of vehicles: Social charges related to the declaration of benefits in kind (which can represent up to 8% of the total cost of your fleet!) as well as the amount of taxes paid on a portion of non-deductible depreciation (about 3.5% of the total cost of your fleet). It should be noted that the trend is upward regarding the ceiling of deductible depreciation for low-polluting vehicles, which can significantly impact the fleet price for cars in environmentally conscious businesses.

What is fleet vehicle cost of ownership?

The most important cost to consider in your management is the fleet vehicle cost of ownership. It is about 40% of the total cost of your vehicle. In the case of a rental or leasing, this cost is represented by financial rents. If the vehicle is financed directly from the company’s cash flow (purchase), then this is called depreciation, and it represents a significant component of the fleet vehicle total cost of ownership.

The second most important cost is between 15% and 30% of the total expenses generated by your fleet; it is the fuel cost, which plays a significant role in fleet vehicle life cycle cost analysis. This cost varies according to the number of kilometres travelled by your vehicles during their service life. The cost of insurance represents about 9.5% of the total cost of your fleet. It is composed of the total amount of your contributions plus the amounts paid for any deductibles. In conclusion, this comprehensive fleet vehicle cost breakdown is essential for identifying areas to optimize expenses and improve overall efficiency

What is electric vehicle fleet cost of ownership?

Electric vehicle fleet cost of ownership refers to the total expenses associated with operating and maintaining a fleet of electric vehicles over their lifecycle. This includes the purchase price or lease costs, charging infrastructure installation, energy costs, insurance, maintenance, and potential incentives or subsidies. Unlike traditional internal combustion engine vehicles, EVs typically have lower maintenance requirements due to fewer moving parts, and they benefit from reduced fuel expenses when compared to gasoline or diesel-powered fleets. Understanding these factors is crucial for fleet managers looking to adopt sustainable transportation solutions.

When calculating cost savings for electric vehicle fleets, it is essential to evaluate all aspects, including the reduced energy costs and maintenance savings against the initial investment in EVs and charging stations. A thorough electric vehicle fleet cost comparison should also factor in regional variations in electricity prices, government incentives, and potential downtime for charging. By analyzing these elements, businesses can determine the long-term economic and environmental benefits of transitioning to an EV fleet, ensuring that their investment aligns with operational goals and sustainability commitments.

Fleet vehicle: What is the cost per mile ?

Fleet vehicle cost per mile is a critical metric for understanding overall efficiency and managing expenses effectively. This calculation includes all fleet vehicle running costs, such as fuel, maintenance, insurance, depreciation, and other operational expenses, divided by the total miles driven. Monitoring the cost per mile helps fleet managers identify areas for improvement, such as optimizing routes, maintaining vehicles more efficiently, or adopting fuel-saving strategies.

What is the cost of a national fleet of delivery vehicles?

The cost of a national fleet of delivery vehicles depends on several factors, including the number and type of vehicles, their purchase or lease prices, fuel expenses, maintenance and repairs, insurance, taxes, and operational expenses such as driver salaries and training. An often-overlooked aspect is the vehicle fleet tracking cost, which includes the implementation and operation of GPS and telematics systems to monitor fleet performance and optimize routes. This investment can lead to significant savings by reducing fuel consumption, improving driver efficiency, and minimizing wear and tear.

What are the fleet vehicle operating costs?

Fleet vehicle operating costs are in themselves a source of expenditure to be considered when calculating the cost of your fleet. It is necessary to take into account the human resources involved in the management of the vehicle fleet: fleet manager and accounting for example. It is also necessary to consider the implementation of fines management or fuel cards. A dedicated computer system is also strongly recommended to centralise the data, circulate and analyse it. The acquisition of a software solution can take two forms: a license purchase to which must be added an annual maintenance and support cost or the payment of a monthly rent including the use, maintenance and hosting of the software.

As you can see, managing fleet car prices requires in-depth knowledge. The right software can greatly assist you in anticipating, optimizing, and analyzing these costs. At hitechsoftware, we have been developing solutions for the rental and fleet management industries for over 35 years. Leveraging our extensive experience, we provide expert knowledge and personalized support to each of our partners to improve their fleet management. The stability of our teams and our continuous investments in R&D bring a new dimension to how our users manage their fleet vehicle costs. This is why we developed the fleet management software, myrentcar, which now handles all fleet costs and supports the management of over 300,000 vehicles worldwide.