As gas prices continue to rise, businesses are feeling the pressure to find new and innovative ways to save money. One area that is often overlooked is fleet leasing.
By leasing vehicles instead of purchasing them outright, businesses can save a significant amount of money in the long run. At Wilmar, Inc., we understand the challenges that businesses face when it comes to budgeting and we are here to help.
Below are seven ways that rising gas prices can influence your fleet leasing decisions:
1. Fuel efficiency becomes more important
As gas prices rise, fuel efficiency becomes more important. When leasing a vehicle, be sure to take fuel efficiency into consideration. The last thing you want is to be stuck with a gas guzzler that is costing you a fortune to fill up.
When working with a leasing company, be sure to let them know that fuel efficiency is a priority for you. They will be able to help you find a vehicle that meets your needs and budget.
2. You may need to downsize your vehicles
If your business requires a lot of travel, you may need to consider downsizing your vehicles. A smaller vehicle will get better gas mileage and save you money in the long run. Most of the time, a smaller vehicle will cost less to lease than a larger one.
Sometimes, downsizing your fleet can eliminate the need to lease new fuel-efficient vehicles. This can reduce your costs even more.
3. You need to track gas expenses more closely
As gas prices continue to rise, you will find that you are spending more money on gas each year. At the end of each month, be sure to look at your monthly gas expense totals and compare them with those of previous months. This will give you a clear picture of how much money you have spent on fuel in relation to previous years. This information can be very useful when looking at potential options for improving your fuel efficiency and saving money.
4. Increased sales may have to be downsized
Keep in mind that as gas prices rise, your customers may be price-sensitive. If their business is not moving quickly enough, they may be willing to pay more for your products and services than you previously thought possible.
This can result in decreased profits. If you need to adjust your sales and/or increase them, be sure to do it gracefully and not too abruptly.
5. You may need to purchase more fuel-efficient vehicles
If your business does not already have a fleet of vehicles that meet your needs, the first thing you will have to do is evaluate your fleet in terms of fuel efficiency and performance. This will help you determine which vehicles are worth keeping and which ones you need to replace with more fuel-efficient models.
6. You may want to reduce the number of vehicles you lease
As gas prices continue to rise, you may want to consider reducing the number of vehicles that your business leases. By doing so, you can reduce your monthly expense totals, thereby increasing the amount of money that you have to work with on a monthly basis.
7. Increased sales may lead to higher profits
Keep in mind that as gas prices rise, you can expect that your business will be doing better. This means that more profit will be coming in and this can lead to higher monthly earnings.
If your business is having a tough time keeping up with its expenses, leasing a vehicle may be the way for you to increase your profits. Many operators see savings of 50% or more when they lease vehicles instead of purchasing them outright.
Headquartered in Charlotte, North Carolina, Wilmar, Inc. is one of the largest fleet leasing companies in the United States. Always on the forefront of new technologies and industry trends, Wilmar is dedicated to providing its clients with the best possible service. Contact us today to learn more about how we can help your business save money on its fleet leasing needs.