Блог

Reducing fleet costs is related to limiting or stopping the use of company cars for personal purposes. How? By introducing the following rules:

1. Limit the geographical region in which cars are allowed to drive

Good practices for using company cars say that the latter should be occupied about 90%, but this occupancy does not include personal use. An effective measure for reducing personal kilometers is limiting the geographical area in which the car is driven. If it serves sites in the city of Sofia or another city, then there is no reason for it to leave the city. If it serves the northern part of the country, then it follows that the car is driven there.

By introducing this rule, you will avoid using company cars for excursions and family vacations.

2. Define home or overnight addresses for the cars

By defining the address for driving the car, you limit the driver’s ability to use the car for personal purposes after working hours. For greater precision, you can set the overnight stay or residence to be within a certain time range, for example from 8:00 PM to 7:00 AM. This way, the car will not be able to be used after 6:00 PM and before 6:00 AM.

3. Set a limit on personal kilometers

The possibility of using the car for personal purposes is a policy that each company decides on its own. However, it is better not to have an unlimited number of them if you want to reduce the cost of the fleet. The recommendation is to allow, for example, 10% personal use and all fuel costs above the limit to be borne by the driver, although this is not the only cost for the car.

4. Limit the places where cars can be parked for business purposes

This rule is applicable to companies whose cars visit the same sites where there is not much dynamics. If you have 100 sites that cars visit, you can limit the parking of cars only at these sites, at gas stations, your offices or warehouses. In any case, we are talking about a finite number of parking places. This practice will stop visiting sites outside your list or clients.

By itself, each of the above rules will not be particularly effective, but in combination of at least 3 of them you can achieve a reduction in car expenses by stopping or limiting their personal use. Monitoring compliance with the above rules is achieved quickly and easily by installing GPS tracking devices in cars and control software.

See how the GPS tracking system will show you violations of the rules set above.

Sample report for policy violations.