How to reduce your businesses auto repair expense budget
If you manage an auto fleet, chances are you’ve pulled out your hair over the costs of repairs and maintenance. Foregoing vehicle repair and maintenance is a bad idea, and you can’t risk business interruptions caused by unreliable vehicles, either.
While this seems like a no-win situation, there are some ways to reduce your auto-related business costs. Read on for strategies on minimizing your auto repair expense budget.
Extended warranties are a good way to save money on your expenses in the long run. This is especially true if you choose a warranty provider with a solid reputation and positive reviews. CarShield reviews, for instance, indicate high levels of reliability and customer satisfaction.
If you have a fleet of any size, you’re going to encounter maintenance and repair problems sooner or later. An extended warranty ensures that your fleet is protected even after the manufacturer’s warranty expires. This long-term protection can minimize business disruptions caused by costly car repairs.
Keep in mind, though, that the last thing you need is to lose money paying for repairs you will never need. Make sure to evaluate your business’ unique needs before committing to an extended warranty for your fleet. With the right coverage, you could save a bundle to have each van or truck under an extended warranty.
Check with your insurance company and shop around for extended warranty coverage before making a decision.
Use your vehicles more wisely
There’s no better time to be more prudent about using your auto fleet. With more people working from home these days, you can take advantage of the many online communication devices to get in touch with your clients and employees. If it saves you on fuel and repair costs, it’s worth looking into.
This option may not be applicable for your business, but otherwise, you can probably curtail some of your non-essential travel. For the times you have to be out, make a list of all the vendors, customers, or other stops you need to make and prioritize them in a way that minimizes your travel time.
Try traveling only two or three days a week instead of five full days. You may also consider offloading a vehicle or two depending on your needs and the size of your business. The savings in maintenance alone can add up if you have superfluous vehicles taking up space and money.
Replace your vehicles
This may seem counter-productive, but another way you can reduce your vehicle costs is to upgrade to more fuel-efficient trucks or vans or to downgrade to used vehicles for your auto fleet needs. Depending on your business’s auto needs, you may be able to reduce your long-term expenses by changing the types of vehicles you use as well as how often you use them.
Initial investments can be more up-front for newer vehicles, and maintenance may be more expensive used vehicles, but you may find these investments worth the savings in the long run.
New vehicles tend to require fewer repairs, are covered under factory warranties in most cases, and can help you save on insurance premiums if they are technologically advanced.
Even though you may already have the best deals on the market, it hurts nothing to ask for new quotes every couple of years. This ensures that you consistently make the best investments for your auto fleet. Having all your vehicles on one policy can help, but so can consolidating your insurance and bank information.
Don’t forget to ask about and take advantage of discounts that might be available for your fleet. Two of the most common are:
- Corporate discounts: Don’t forget to ask about special discounts for your business or auto fleet. Some companies will offer discounts depending on the size of the fleet.
- Insurance discounts: Bundling isn’t the only way to save money on your insurance. Shop around for new quotes and look for provider discounts every few years.
Focus on quality
This may be the best advice for your business overall. If you only hire and employ the best people to move the best products through the best means possible, you’ll have nothing to worry about. Good employees and efficient vehicles save time, which in turn saves money.
Quality also applies to the way you run your fleet, the safety of the drivers, and the kind of products and services you use to address problems. The safer and more efficient your auto fleet is, the more money you can expect to save and generate as the years go by.
The bottom line
An auto repair expense budget is crucial for every business with an auto fleet. However, this budget doesn’t have to bleed your business’ income dry. It’s a matter of keeping this budget low without compromising your auto fleet’s performance.
There are many ways to achieve this balance. For instance, you can keep repair costs low by protecting your vehicles with extended warranties. Upgrading to more fuel-efficient, more reliable vehicles is also an idea worth considering.