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FLEET MANAGEMENT
Dealer delivery costs
If your fleet is scattered in various states check the
costs that vary from location to location.
Roadside assistance
Are there charges for roadside assistance? Does the
vehicle make and model come with this service?
Don’t pay for it twice, but remember, if it is intended
that the vehicle be kept beyond the manufacturers’
warranty period then a cost for this type of service will
be needed.
Management fees
If you lease, add the lessor’s management fee. Most
leasing companies charge a fee of this type, and it
should be included for each month the vehicle will be
in service.
In capturing a vehicle’s entire whole of life costs
it is appropriate in an analysis to add any internal
overhead cost of managing the fleet you have as a
fixed cost.
Financing costs
Whether you buy or lease there is a cost of money
used to acquire vehicles. If you lease, the interest you
pay represents a direct cost of money. If you buy, you
should account for the loss of interest income your
organisation could have realised from investing the
money instead of buying a depreciating asset.
Operating costs
Operating Costs are those incurred through the use
of the vehicle. Typically, these include fuel, oil, tyres,
maintenance and repairs, including collision repair
expenses beyond those covered by the fixed cost of
insurance. These expenses are tied to the number of
kilometres/hours a vehicle is operated.
Fuel
Fuel costs are determined by estimating consumption
per operating unit in litres per 100 kilometres. This
information is available from manufacturers in printed
form and online in fuel consumption guides and
various motoring publications.
You will also need to estimate the monthly distance
your drivers currently travel, and then multiply that
distance by months of service.
Govlink I Issue 1 2014
Cost of fuel is the final variable. While you may not be
able to accurately project future fuel costs, a per-litre
estimate based on present costs should be suitable.
Remember, vehicles oper ][