21st December 2022
With interest rates and inflation increasing, Civica’s Keith Hawker shows how fleet managers can identify savings with better data
In November, the Bank of England increased its base rate to 3%, pushing up the cost of vehicle leasing yet again. This is another huge blow to the fleet sector which is already facing a significant increase in running costs, from fuel to surging inflation of car parts, as well as rising vehicle procurement costs and production delays due to the global chip shortage. Some of our customers have seen their leasing costs increase by £200 per asset per month, while others reported a 20% price increase for vehicle replacements.
For fleet and logistics operators who rely on vehicles to deliver their products and services, a real change is needed. Fleet managers are now considering how they can better balance their budgets, whether recovering funds from elsewhere in the business, making better use of existing assets or by reducing fleet spend. However, reducing overall assets can impact product and service delivery levels – an impossible ask for many organisations across the private and public sector.
Fleet management systems report on vehicle whole-life cost at the touch of a button. With better data insight, fleet managers can identify and reduce the least cost-effective vehicles to make savings.
With clear visibility of vehicle costs, fleet managers can forecast accurately and collaborate with other departments to improve business planning. They can also create a robust vehicle replacement policy to maximise return on investment, during these short-term financial difficulties and further into the future.
Civica has over 40 years of experience in fleet management. TranSend Fleet Management software, our cloud subscription platform maximises the use and value of your vehicles, from procurement to disposal. Get in touch to find out how we can optimise your fleet.