The cost of a small fleet is much more than finance and fuel. Depreciation, servicing, tyres, tax, insurance, downtime and administration all belong in the calculation.
List fixed and variable costs
Finance, lease rentals and tax are relatively predictable. Fuel, tyres, maintenance and repairs move with mileage, vehicle type and driving pattern.
Put a value on downtime
A van off the road may mean hire charges, missed work or staff time spent reorganising jobs. That business cost is easy to overlook.
Calculate cost per vehicle and per mile
Both views are useful. Cost per vehicle helps budgets; cost per mile makes it easier to compare vehicles doing different amounts of work.
Review the figures before replacement
A vehicle that looks cheap because it has no finance payment may be consuming money through repairs and downtime. Use actual figures to challenge assumptions.
Example: three vans for one year
| Cost across three vans | Illustrative annual amount |
|---|---|
| Depreciation / rentals | £15,000 |
| Fuel | £12,000 |
| Maintenance and tyres | £4,200 |
| Insurance | £3,300 |
| Tax, breakdown and admin | £1,800 |
| Total | £36,300 |
That is roughly £12,100 per vehicle before parking, tolls, accident excesses and lost work. A business running only a few vehicles can still have a substantial annual transport budget.