Driving Down Vehicle Expenses-Part Two

Last week we began looking at ways to reduce vehicle expenditures during this tough economy. Today, we'll conclude this series with a few more helpful tips that can be implemented easily and efficiently.
Look for fuel bargains:
Some Chambers of Commerce offer fuel cost savings as benefits to their members and numerous supermarkets have fuel discount-for-purchase deals going with various gas stations.Check out the range of alternative fuels available – maybe a conversion to propane or a low ethanol mix gasoline suitable for standard engines is in order. Find the least expensive station using one of the internet sites that track fuel prices.
Lease your vehicles:
There are advantages in leasing over outright purchase, such as no large down payment, fixed monthly payments, and potential reduced maintenance and service costs. There may be tax benefits as well. There are, however, some potential disadvantages to leasing over purchase, the most obvious one being that the vehicle is never owned by you. The maintenance agreement can run against your interests as well, making you responsible for too many of the costs. Leasing vs. owning is one of those situations where you need to do the math carefully and get a number of quotes before making the decision.
Minimize insurance coverage costs:
Your commercial car insurance should be a business tax deduction. Additionally, a portion of your personal car insurance should come off your business taxes also if you are using your vehicle for business related purposes. Different companies can charge very different premiums for the same coverage – do some price comparison checking on your vehicle insurance needs.
Change vehicles:
Use the most efficient vehicles for the purposes you are putting it to. Doing the bank run in the company truck is not efficient. With the government's stance on the environment, eco-friendly vehicles that improve fuel economy and reduce road tax are becoming more appealing. Lower emission vehicles are now available in most types from small runarounds to commercial light duty up to heavyweights weighing 18,000 - 33,000 lbs gross vehicle weight.

As always, please contact a Simons Bitzer team member with questions or comments.