Automotive Fleet
MenuMENU
SearchSEARCH

Editor's Page

Whenever fleet managers get together it is almost inevitable that the subject or costs will be discussed. At the recent National Assn. of Fleet Administrators convention in Detroit I sat in on many a bull session where the conversation eventually got around to how much it costs to operate a fleet.

by Roy Wiley
August 1, 1963
3 min to read


Whenever fleet managers get together it is almost inevitable that the subject or costs will be discussed. At the recent National Assn. of Fleet Administrators convention in Detroit I sat in on many a bull session where the conversation eventually got around to how much it costs to operate a fleet.

Ad Loading...

However, in many cases it appeared that the fleet managers were talking about apples and oranges. What was considered a cost to one manager was often passed off to another company department by another manager.

Ad Loading...

For example, one fleet manager told me that he has been able to divert some fleet charges to the sales department and as a result, has been able to come up with the lowest cost figures in years for his "own" operation. Another fleet manager said he refuses to employ the one, or two people necessary to check and record fleet expenses on maintenance and mileage because he feels that the personnel costs - which would be charged to him - would more than offset any savings that might be uncovered.

One often incurred but almost always hidden cost that never shows up in a fleet operation is the cost that accrues to the scattered fleet at replacement time. The operator of the car, not trained in replacement procedures, is expected to seek out three or four dealers for the best available "deal" which is then relayed to the home office for approval. Nothing is done about the lost time to the operator in seeking out quotes and completing the paperwork. Certainly, the lost time is not charged against the fleet department. This is one of the major reasons why leasing companies are making such spectacular headway in the fleet field - by eliminating the lost time of salesmen. With the average cost per call for a salesman estimated at $35, it is not difficult to justify professional fleet help if it is not forthcoming from the fleet department.


In view of the tremendous profit squeeze confronting industry today, I feel that it is the duty of all fleet managers to convince their management that all real costs should be properly included in the fleet operation; that comparisons, when made, should be done on specific areas where accounting is similarly done and that the fleet manager is a professional who can save his company his own salary many times over it he is permitted to operate as a professional.

Bob Stirling, the capable fleet manager of the Travelers Insurance Companies, recently told me that the job of the fleet manager is peculiar not only because the average fleet manager does not direct the activities of the men who drive his cars, but also because while the cars are made by others, assigned by others, serviced by others and driven by others, the fleet administrator is charged with the responsibility of producing a sale economical operation. Stirling, who is a Scotsman, said that remembering the things a fleet administrator does not control, he still can make a substantial contribution to company operations in the area of economy. Economy can be achieved in the purchase and replacement of cars. Economy can be achieved through the development of maintenance procedures and the resulting elimination or reduction of expensive down time. And economy can be achieved through the promotion of safety in operation.

If the fleet manager does not build his position into one of complete costing responsibility by convincing management that all functions related to cars belong to the fleet department, you can be certain that management someday will take a fresh look at the situation and possibly choose one of three alternatives: a new fleet manager, a fleet management service or a switch to leased cars.


Topics:Operations
Subscribe to Our Newsletter

More Operations

A Cox Fleet technician working on the left with the rear view of a military man saluting a flag on the right
Operations•October 8, 2026

How Fleets Can Recruit and Train Veterans for Technician Roles

Here's how the technician shortage has affected uptime for fleets, and what to do about it.

Read More →
A transparent toll background with the Automotive Fleet logo and Neology logo on top.
Operations•October 5, 2026

Avis Budget Group Deploys Neology Toll Management Technology Across Major Brands

Neology’s neoFleet platform will manage toll transactions and toll-authority operations for vehicles across Avis, Budget, Payless, Budget Truck and Zipcar.

Read More →
Family framed photos and company car in middle
Operations•by Chris Brown•October 2, 2026

Fleet Personal-Use Charges Edge Higher in 2026

Nearly eight in 10 surveyed fleets allow personal use of company vehicles, while just over half of respondents report charging employees for the privilege.

Read More →
Ad Loading...
AF news recap thumbnail
Operations•by Faith Howell•October 2, 2026

The Future of Fleet + What’s Changing Right Now | AF News Recap

Could developments overseas offer a preview of what’s coming for U.S. fleets? This week, we’re looking at the future of AI, autonomy, and electrification, plus Ford Pro’s new certified pre-owned program, smarter vehicle offboarding, and a new way for fleets to manage toll expenses.

Read More →
blue text over top of the top view of cars in a parking lot
Operations•by Faith Howell•October 1, 2026

How to Handle Vehicle Offboarding

What do fleet managers need to do when a driver leaves?

Read More →
Motorq Whitepaper Cover - Fleet Managers Ultimate Playbook
Sponsored•October 1, 2026

Fleet Manager’s Ultimate Playbook: Navigating the New Standard in OEM Connectivity

Rising operating costs, driver safety concerns, and unplanned downtime are putting unprecedented pressure on modern fleets. Discover how fleet managers use embedded OEM connectivity and real-time vehicle data to cut TCO, prevent downtime, and protect drivers without aftermarket telematics hardware.

Read More →
Ad Loading...
A toll road with blue text a top
Operations•by News/Media Release•September 29, 2026

U.S. Bank Adds Verra Mobility Toll Management to Voyager Fleet Platform

The integration allows U.S. Bank Voyager fleet customers to manage toll payments and violations alongside fuel, EV charging and maintenance expenses.

Read More →
An AF news recap thumbnail with blue and white colors
Operations•by Faith Howell•September 28, 2026

ADAS Prevents Crashes. But Repairs Cost More | AF News Recap

ADAS-equipped vehicles may crash less often, but they can cost more when they do. This week, we’re breaking down what that tradeoff means for fleets, plus Subaru’s first Forester Wilderness Hybrid, Nissan’s new e-POWER Rogue, and why Calstart has become Catalyst Mobility.

Read More →
Moventum Fleet management leadership update with Mark Iorillo
Operations•by News/Media Release•September 18, 2026

Moventum Fleet Management Names Mark Iorillo Head of Sales

Iorillo brings nearly 20 years of fleet management and sales experience to the role, including previous positions at Element Fleet Management, CEI, Donlen and Ryder.

Read More →
Ad Loading...
AF news recap thumbnail
Operations•by Faith Howell•September 11, 2026

Fleet Has a Talent Pipeline Problem. What Comes Next? | AF News Recap

Where will fleet’s next generation of leaders come from? This week, we’re looking at the industry’s talent pipeline, what certification can add to a fleet career, how to build an award-worthy track record, and the return of Automotive Fleet’s Personal Use Survey.

Read More →