Fleet management: The costs and how to lower them

Are you involved in vehicle fleet management? Your company deliver products every day ? Then you have a range of costs to consider.

First, there are direct costs: things like depreciation, interest, vehicle repair, maintenance, tires, 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 vehicle fleet. Then, it shows how our cloud platform can help you keep them under control.



World wide, 20% of the total cost of ownership of car fleets comes from fuel. That makes managing and minimizing 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, providing 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 different costs, from insurance premiums to repairs to vehicle downtime

Unpredictable costs

The costs that are harder to measure can often feel even more challenging 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 fulfill your duty of care
  • Your employees committing driving offenses while using company cars that lead to increased insurance premiums


No matter the size of your fleet and whatever routes your business is taking now, you can expect to uncover new ways to save fleet management costs and miles on the routes your drivers are taking every day.

Lower fleet size and fuel consumption with planning and tracking
A fleet management solution gives you clear, understandable access to crucial data regarding how your team is using their vehicles.
Xfleet help transport managers plan and optimise their daily vehicle routes, enabling them to reduce both fuel costs and fleet size.

Lower your downtime with Maintenance

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 are minimized, lifespan is extended, and vehicle safety is optimized 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 minimize downtime and repair costs.

Increase Efficiency

Route Optimization with Advanced Telematics features give you an unprecedented overview of your fleet in near real-time, working using just one app. They help you get the right driver to the right appointment, taking into account weather, traffic, and other factors that might unexpectedly slow things down. This enables you to 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 fleet management costs can be lowered with a digital solution? Ask for a demo.