As a fleet manager, saving costs is often a high priority – especially unnecessary costs that can easily be optimised. General trends suggest that the highest expenditure for fleet managers is vehicle ownership. This includes leasing and outright purchasing. The second highest expenditure takes up the form of fuel costs, and this is where analysing running costs as well as a mileage cost calculator UK comes in.
Running costs are expenditures that keep your vehicles on the road. This includes fuel, driving style and total cost of ownership for vehicles.
A mileage cost calculator comes in handy by accurately showing you how much each journey costs. Read on to learn how driver analysis saves running costs, as well as how a mileage cost calculator UK can start saving you money today.
How Does A Mileage Cost Calculator UK Work?
Fundamentally, the longer your vehicles spend out on the road, the higher your mileage will be. As a result, your fuel costs rise in tandem. However, you can take immediate steps to keep this at bay, and you can start by making use of a mileage cost calculator.
It works by calculating the price of each of your routes per mile. Typically, it does so by factoring in at least a couple of the following:
- Fuel consumption
- Distance
- Engine type
- Fuel cost
- Mileage rate
You start off by entering the individual departure and arrival destinations for a journey. There is also the option of adding a stopover destination, which is usually the case for multi-stop dropoff and pickup delivery routes.
Learn More: How Does a Multi-Drop Route Planner Improve Your Business?
Once all the variables are added in, a mileage cost calculator UK then calculates the cost the distance and the cost of the journey.
Why Is It Important For Companies To Track Their Mileage?
Tracking your mileage is one of the quickest ways to identify easy cost-saving opportunities.
If the mileage of each of your vehicles within your fleet is left unchecked, it can shoot up, resulting in an array of easily avoidable problems and costs. Subsequently, a higher mileage means more vehicle running costs for your business.
Tracking your mileage:
- Saves fuel costs
- Lowers your insurance premiums
- Keeps your vehicles in better condition
- Reduces your CO2 emissions
Learn More: How does Driver Style Analysis Reduce Insurance Costs
Direct Savings: Fuel Costs and Insurance Premiums
As a result, a business that has a fleet of vehicles with reduced mileage saves time and money. They do so directly, and indirectly.
Saving fuel costs and lowering insurance premiums count as the most direct ways of saving money. This means that you can start saving right away. Spending less money on fuel and paying less for your insurance plans, therefore, are more evident when it comes to saving money with help of a mileage cost calculator.
Indirect Savings: Vehicles In Better Condition
Moreover, a mileage cost calculator saves your business a lot of money – indirectly. Lower mileage means vehicles that are in better condition. As a result, your vehicles are less likely to break down and get into accidents. This means that you spend less money on repairs and insurance claims.
Read More: Learn About Vimcar’s Accident Management Solutions
How Can You Keep Your Mileage Low And Reduce Running Costs?
Cutting business costs for your SME that can easily be saved is a great start to becoming more efficient. Moreover, your drivers’ individual driving styles are a leading factor for your total running costs and accident likelihood.
This is because poor driving habits can drastically increase fuel costs. Poor habits, including harsh braking, speeding and long vehicle idling times can wear out your vehicles and decrease fuel efficiency.
Therefore, a key, yet easy method of reducing your running costs can be achieved with more efficient driving habits. Luckily, you can acquire Vimcar’s Driving Style Analysis solution to do just so. The solution can lead to decreased fuel costs, which leads to a lower cost per mile for each of your journeys.
Learn More: How Can Business Mileage Trackers Save You Money? & Save At Least 10% On Fuel Costs With a GPS Mileage Tracker
Driver Style Analysis (DSA)
By identifying inefficient driver behaviours, you can closely analyse driver performance and encourage cutting out persistent habits that increase running costs. If your drivers engage in inefficient driving habits, such as heavy braking, vehicle idling and excessive revving, ultimately, more fuel is spent on facilitating such habits.
The more fuel is used for these habits, the less fuel is available for your fleet’s journeys – and the more money you spend on fuel.
Vimcar’s Driving Style Analysis (DSA) cuts out poor driving habits among your drivers. Using information from each vehicle’s OBD interface, it measures the following driver behaviours:
- Speeding
- Braking
- Vehicle Idling
Moreover, these poor driving habits are more likely to lead to your vehicles becoming less fuel-efficient and unroadworthy, not to mention the increased likelihood of an accident. As mentioned above, this means that the running costs of your business will drastically increase through indirect costs. Repairs certainly aren’t cheap – as are high insurance premiums and vehicles unfit for service.
Therefore, Vimcar’s DSA is paramount in reducing the running costs of your fleet. Rather than you having to rely on guesswork, you can rely on transparent, hard data, beamed straight to your mobile, tablet or desktop to easily identify cost-saving opportunities.
Summary: Rely On Intuitive Vimcar Technology To Reduce Running Costs
Vimcar offers you intuitive, specially designed solutions to make your business more efficient. Rather than relying on instinct and speculation, Vimcar stands out from the crowd by providing transparent, real-time driver habit data with its DSA tool.
You can further reduce your running costs by acquiring Fleet Geo by Vimcar. Fleet Geo is an industry-leading fleet tracking solution that identifies each of your vehicles’ locations using high-grade GPS technology, reducing your vehicles’ journey distance, and further reducing your mileage.
