What factors weigh into your company's vehicle purchasing choices?

Anytime you set out to purchase a new vehicle, you're making a huge financial decision. A car is a major investment, and you need to think carefully about what requirements you have and how much you're willing to pay for them.

Your company's financial future depends on your ability to get a strong return on investment.

When you're making a purchasing decision on behalf of your business, the importance of these decisions is magnified even more. After all, your company's financial future depends on your ability to make smart choices that will yield a strong return on investment. Ideally, you'd be able to work out a purchasing strategy that will be solid and repeatable over the long haul.

So how do you choose vehicles for your company's fleet, anyway?

Considering all the relevant angles

When you're weighing your options for your company's next car purchase, there are some factors that are relatively obvious. You know, for instance, that the price tag and the car's fuel consumption rate merit consideration. But according to the Department of Finance, there are a few other operational requirements that go overlooked.

One is load capacity. How much cargo can you carry in a vehicle at one time safely? This can determine how productive the vehicle will be on a per-hour basis. Additionally, have you considered other environmental factors beyond fuel consumption? For example, according to the Green Vehicle Guide, the average new car in Australia emits CO2 at a rate of 188 grams per kilometre. Can you find vehicles that do better?

Evaluating costs, negotiating prices

One of your responsibilities as a fleet manager is to consider the full cost of each transaction you make - not just the immediate hit to your bank account from purchasing a vehicle, but rather the expense of the entire lifecycle. What about insurance, maintenance and so on? All of these long-term considerations matter. This is especially the case if your business is operating in a larger city, where costs tend to spike higher. For instance, according to RateCity research, the average car insurance policy in Sydney costs a staggering $1,134 per year.

Negotiate deals that will fit your business' plans.Negotiate deals that will fit your business' plans.

According to Bankrate, it's important to calculate these figures early because you can factor them into your cost management plans. If you know exactly how much you can afford to budget for cars over the long haul, you can negotiate with vendors to obtain vehicles at price points that fit your plans.

Using advanced tools for cost management

All of this cost management arithmetic becomes far easier to do when you have a great fleet management program. Fortunately, you can fully streamline the acquisition and disposal of your fleet vehicles using Smartfleet's online tendering system.

Our easy-to-use module will allow you to set up a tender whenever you need to buy a car. It gives you total control of all bids online, which can help you save up to 15% on the cost of a new vehicle over another software solution. We also have a team of industry experts in our camp, which means we can help you keep up with industry trends and manage the process expertly and efficiently.