PV Rentals, Leasing & Sales
If someone is working on a pipeline, chemical plant or downtown office park, vehicles are one of the most critical needs for business. How often has an in-depth review been done of the transportation costs spent within companies? Below are some key elements to a transportation analysis.
Fleet management
There are three basic ways businesses can manage fleet needs: purchase, leasing or rental. Outsourcing vehicle needs is one of the best ways to drive down costs, work with strict time constraints and increase flexibility.
Most businesses have a mix of needs for vehicles, including size and quantity. Some portions of the business have more fixed and long-term requirements for a fleet. Generally speaking, the long-term (two years and beyond) requirements are better suited for leases. Some of the main benefits of a lease are lower acquisition costs of fleet and preservation of credit lines, as well as being able to write off the lease as an expense rather than a depreciable asset.
For projects under three years, the rental option allows for several additional benefits. Rentals typically offer more flexibility for transfers of vehicle types, and not having a locked-in commitment of time allows the business to scale up and down without penalties should it need a change of vehicle.
In many cases, the timeline to add or change the fleet requirements for the various types of vehicles is very short. Looking for a vendor that can quickly deliver both the type and quantity needed is not an easy or quick task. Once the fleet is in place, the maintenance and service also becomes an issue that must be considered when factoring costs. Downtime equals money lost, so it's important for the vehicles to be dependable. As the project comes to a close, companies then have to begin the process of de-fleeting. The coordination associated with vehicle disposition comes into play, and proper allocation and invoicing of costs is critical to control throughout the project.
Outsourcing to fleet management companies that offer comprehensive services like PV Rentals, Leasing & Sales helps eliminate the burden on a business in all these aspects. These specialty companies can simplify each process and allow for better focus on the core competency that won the project in the first place.
Fleet availability needs
In order to lower costs, it is advantageous to deal with a vehicle vendor that has the ability to supply the widest variety of fleet. Not only is the variety of vehicles important, but the availability of the fleet is also critical. As a customer, you will have an advantage when you can leverage a larger vehicle order with one vendor rather than to splitting orders among several vendors for different needs.
Service needs
Upfront pricing is always a concern, but the total cost of vehicles for a project should also be taken into consideration. In addition to the monthly billing, it is critical that the age and potential downtime of the various vehicle types be considered. If a truck is down, it can cause not only lost man-hours but also a ripple effect throughout the project that can lead to extensive costs not included in the original budget. In order to keep costs low, choose a vendor that has a more reliable fleet and a process to quickly manage service, maintenance and damages to vehicles. This will keep your company's costs low and stress levels even lower.
Vehicle disposition
As a project or contract ends, the business requirements for fleet change. With leasing and rental options, the ability to downsize is built into the plan. Vehicle costs end at lease termination or on a requested call-off date when renting. For owned vehicles, the costs continue regardless of usage, including often overlooked items such as property taxes. Lastly, vehicle costs for preventative maintenance and upkeep increase over time, which is yet another soft cost eliminated when leasing or renting.
When budgeting or bidding for new projects, take an additional step to partner with a vendor that can truly help move a project more efficiently with a lower net cost. It is well worth the due diligence.
For more information, visit www.pvrentals.com or call (832) 570-5208.
