Fleet Management Costs are on the Rise: Are You Prepared?

Mar 18, 2009

In addition to an unstable economy, fleet managers and business owners now have to contend with fleet management costs on the rise.

Our colleagues at Business Fleet have released some key findings from GE Capital Solutions Fleet Services 14th annual fleet passenger car maintenance study. One major finding was that fleet management costs have risen 5% from 2007 to 2008.

The main source for this uptick in costs came from increased prices for replacement tires along with higher labor rates. Since oil is a key ingredient in the tire manufacturing process, when oil prices sky-rocketed, so did the price of tires. Add to that the cost of labor rising 3-4% from the previous year due to shops feeling the economic pinch, and you can see how these costs can quickly add up and affect your bottom line.

One way to combat these rising costs, especially in relation to tires, is with the maintenance reporting that a fleet fuel card offers. You’ll know exactly when your vehicles need their tires replaced, so you’re not spending extra money replacing them too often and you’re not letting them go so long that something else breaks.

Read the entire story here,
and we want to know: what will you be doing in 2009 to combat rising fleet management costs?