{"id":838,"date":"2020-09-04T14:12:36","date_gmt":"2020-09-04T14:12:36","guid":{"rendered":"https:\/\/www.carbar.com.au\/blog\/?p=838"},"modified":"2025-06-23T13:56:15","modified_gmt":"2025-06-23T03:56:15","slug":"control-costs-with-a-flexible-business-fleet","status":"publish","type":"post","link":"https:\/\/carbar.com.au\/blog\/control-costs-with-a-flexible-business-fleet","title":{"rendered":"Control Costs With A Flexible Business Fleet"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Australian businesses are facing an unprecedented moment in history. Public health measures implemented in response to COVID-19 have put pressure on organisations in all sectors of the economy, forcing closures of retail precincts and impacting both national and international supply chains.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this period, protecting your business\u2019 cash flow should be your number one priority. To that end, many businesses are examining their expenses in a new light, taking a fresh look at where their money is being spent and working to make their business as efficient as possible. With income disrupted in many industries both directly at the consumer level and indirectly through upstream impact, smarter decision-makers are putting everything under the microscope.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One such area receiving renewed scrutiny is the corporate fleet. While previously always assumed as completely necessary \u2013 after all, your business needs to move people and product \u2013 the current crisis has forced a shift in thinking. A massive cost-centre with very little transparency, corporate fleets can be a major drain on revenue, costing a company hundreds of thousands a year in maintenance and administration. In an era where it is vital for your business to be as lean as possible, your fleet should be the next expense you and your team consider.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">On this page:<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carbar.com.au\/blog\/control-costs-with-a-flexible-business-fleet\/#Why_is_my_business_fleet_so_expensive\" >Why is my business fleet so expensive?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carbar.com.au\/blog\/control-costs-with-a-flexible-business-fleet\/#What_you_can_do_about_it\" >What you can do about it\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_my_business_fleet_so_expensive\"><\/span><span style=\"font-weight: 400;\">Why is my business fleet so expensive?\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Business fleets are expensive to own and maintain because cars are expensive to own and maintain. All the costs you wear in the course of owning your own private vehicle \u2013 depreciation, administration, servicing, fuel \u2013 apply to each and every one of the vehicles in your fleet, adding up to a substantial cost to your business. Additionally, variable costs such as fuel and servicing can be higher for a fleet car compared to a similar private car, as fleet cars will often be used more often and for longer periods of time, increasing wear on the vehicle. That translates into more trips to the garage, more tyre changes, and an overall greater maintenance bill.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The inflexibility of a business fleet also attracts its own indirect costs. Vehicles are expensive assets that are hard to dispose of. Whether you have purchased the vehicle outright or access it on a lease or loan structure, freeing up capital locked into a fleet can be extremely difficult. While not a pressing issue every day, this inflexibility becomes an issue if business slows down or the market changes and you can no longer justify the expense of the vehicle. When your margins are your highest priority, you can\u2019t afford to be paying the lease and running costs on a vehicle that\u2019s not providing value to your business. This cuts deeper for businesses with seasonal or irregular demand \u2013 operators cannot easily and cost-effectively scale up their capacity without acquiring a new vehicle, creating additional risk during a downturn. With depreciation such a killer, expanding your fleet is a step your business would be wise to avoid as much as possible.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, fleets create balance sheet issues regardless of how they\u2019re held. Recent changes to accounting standards mean that even vehicles accessed via a lease must be recorded on the holding business\u2019 balance sheet. Previously, leased vehicles could be left off a balance sheet, allowing businesses to reduce the amount of debt it reported, lowering their debt-to-equity ratio and potentially making them more attractive to lenders. With this change, a leased vehicle has an identical impact on your balance sheet as one you own, increasing the amount of reporting required and potentially affecting your ability to seek a loan.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_you_can_do_about_it\"><\/span><span style=\"font-weight: 400;\">What you can do about it\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With leasing and owning a vehicle offering similar costs and liabilities, smarter businesses are looking at new access structures that allow them to preserve the benefits of ownership without the downsides. Many of them are turning to Carbar. Our car subscription service increases transparency while decreasing costs, helping you take control of your expenses in several ways. No more worrying about servicing schedules, no more shopping around for insurance or losing money to depreciation \u2013 we take all the mess out of running your fleet, condensing dozens of bills into a single weekly fee that gives you access to your entire fleet. Just pay for fuel. Crucially, car subscriptions do not need to be recorded on the balance sheet, giving you an advantage over your competitors when approaching investors.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With <\/span><a href=\"about:blank\"><span style=\"font-weight: 400;\">used car prices and demand for vehicles remaining strong<\/span><\/a><span style=\"font-weight: 400;\"> despite the downturn, now is the perfect time to offload your fleet and embrace subscription. Businesses can even <\/span><a href=\"https:\/\/www.carbar.com.au\/sell-a-car\"><span style=\"font-weight: 400;\">sell their cars directly to Carbar<\/span><\/a><span style=\"font-weight: 400;\"> and turn that money directly into a new subscription.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep your business moving the flexible way with Carbar. To learn more about car subscription, browse our range of vehicles or join for free, visit <\/span><a href=\"https:\/\/www.carbar.com.au\/\"><span style=\"font-weight: 400;\">carbar.com.au <\/span><\/a><span style=\"font-weight: 400;\">today.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Australian businesses are facing an unprecedented moment in history. Public health measures implemented in response to COVID-19 have put pressure on organisations in all sectors of the economy, forcing closures\u2026<\/p>\n","protected":false},"author":2,"featured_media":1003,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[108],"tags":[],"class_list":["post-838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-driving-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Control Costs With A Flexible Business Fleet<\/title>\n<meta name=\"description\" content=\"Cut the fat on your business &amp; find out how a smarter approach to your fleet with Carbar could leave your company leaner, providing the capital for growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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