Driving Down Vehicle Expenses-Part One

The current economic downturn may have pushed fuel and vehicle costs lower for the time being but that is not going to outlast the first signs of economic improvement. If you want to avoid being held hostage by increasing fuel and vehicle costs in the future, now is a good time to look at how you can manage your vehicle related business costs.

Limit the use of company vehicles to company work:
Allowing employees to use company vehicles for private jobs or to take home for the weekend is opening you up to large scale abuse, not to mention the added fuel expense and wear on the vehicle.

Claim all mileage allowances and vehicle related expenses:
People using their private vehicle for business journeys can claim tax free expenses for that journey. Most small businesses could legally increase their tax deductions simply by keeping better records of their business related travels. Log each day’s trips and any vehicle related expenses incurred during that day. Put the information in a spreadsheet for your accountant to use at the end of the year so you do not lose track of the real amount expended.

Keep your vehicles properly maintained:
Poorly maintained vehicles can boost fuel consumption by up to 15%; a clogged air filter by 10%; just one 8 psi (56 kPa) under-inflated tire can reduce its life by 10,000 miles and increase fuel consumption by 4%. Keeping your vehicle in top operating condition saves fuel and money, keeps it reliable, preserves resale value and reduces long term maintenance costs.

Consolidate your trips:
Plan errands and deliveries so that you do them together rather than as separate trips. Schedule deliveries in particular areas for particular days. Invest in a GPS and plan the daily run to take the shortest overall distance or most efficient route.