As the global economy continues to grapple with inflation, fleet companies are feeling the impact on their bottom line. Many fleet managers are asking how to reduce fleet costs in today’s environment. Inflation affects fleet companies in a variety of ways, from increasing fuel and maintenance costs to raising insurance premiums. It is crucial for fleet companies to implement effective cost management strategies to maintain profitability and remain competitive in today's market.
Fleet costs are up across the board due to inflationary pressures. Acquisition costs have increased with minimal offset from fleet incentives. Interest rates are higher, impacting the lease vs. buy decision and companies requiring outside funding to replace vehicles.
In Episode 141, learn more about the top factors contributing to increasing costs in the commercial fleet market, as presented by AF Editor Mike Antich.
No one predicted the spike in replacement parts prices over the past several years nor the delays in getting out-of-stock parts. This assessment explains how these numerous price increases add up to big expenditures raising TCO.
A cost-deferral strategy simply defers or moves expenditures to future fiscal years. Cost-saving measures seek to lower current spending levels. Cost-avoidance initiatives are actions that eliminate incurring a cost in the future.
Automotive Fleet's Sound Off column presents views and opinions from diverse fleet industry voices on issues of the day.
Corporate maverick spending — sometimes known as rogue spending — refers to unauthorized expenditures by employees within a company without proper approval or adherence to established financial controls or fleet policy
Cost containment is the issue of the day as national economic and future market conditions remain uncertain for the latter half of this year and into calendar-year 2024.
Electric vehicles can save on fleet maintenance over ICE vehicles. But the electronic complexities of EVs need to be considered when formulating an EV fleet maintenance program.
As more fleets and organizations look to control costs, how are some coping with the task? Learn some strategies and reactions in this week’s State of the Fleet Industry video.
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