{"id":3833,"date":"2019-12-11T16:21:05","date_gmt":"2019-12-11T15:21:05","guid":{"rendered":"http:\/\/en.advancedfleetmanagementconsulting.com\/?p=3833"},"modified":"2019-12-11T16:21:05","modified_gmt":"2019-12-11T15:21:05","slug":"3833","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2019\/12\/11\/3833\/","title":{"rendered":"How to Calculate a Shuttle\u2019s Total Cost of Ownership"},"content":{"rendered":"<h3 style=\"text-align: center\"><strong>How to Calculate a Shuttle\u2019s Total Cost of Ownership<\/strong><\/h3>\n<p style=\"text-align: justify\">Adding a luxury shuttle to your operation involves many factors and not just whether it will add to the revenue stream.<\/p>\n<p style=\"text-align: justify\">While that\u2019s an important consideration, it must be weighed against the cost total cost of owning the vehicle. A vehicle that costs more to operate than the amount of revenue it generates isn\u2019t a good investment \u2014 and is, in fact, a recipe for financial disaster.<\/p>\n<p style=\"text-align: justify\">That\u2019s why it is crucial to keep a close eye on the total cost of ownership (TCO) to help maximize both the asset\u2019s value and its value to the bottom line.<\/p>\n<h5 style=\"text-align: justify\"><strong>Zeroing in on Costs<\/strong><\/h5>\n<p style=\"text-align: justify\">TCO can be broken into <strong><a href=\"https:\/\/www.fleetfinancials.com\/156653\/measuring-true-fleet-cost-savings\" target=\"_blank\" rel=\"noopener noreferrer\">fixed and operating costs<\/a>.<\/strong><\/p>\n<p style=\"text-align: justify\">Fixed costs include:<\/p>\n<ul style=\"text-align: justify\">\n<li>Depreciation<\/li>\n<li>Acquisition costs<\/li>\n<li>Insurance<\/li>\n<li>Titles\/tags\/tax<\/li>\n<\/ul>\n<p style=\"text-align: justify\">While operating costs include:<\/p>\n<ul style=\"text-align: justify\">\n<li>Fuel<\/li>\n<li>Maintenance<\/li>\n<li>Tires<\/li>\n<li>Oil<\/li>\n<\/ul>\n<p style=\"text-align: justify\">Fixed costs are those expenses related to <em>owning<\/em> the vehicle and operating costs are those associated with <em>using<\/em> the vehicle. The combination of the two comprise the vehicle\u2019s total cost of ownership.<\/p>\n<p style=\"text-align: justify\">The fixed costs are inescapable and need to be factored into your budget as part of the ongoing expense of owning the vehicle.<\/p>\n<p style=\"text-align: justify\">That being said, depreciation, the biggest cost associated with owning a vehicle, can be controlled by planning when the vehicle is purchased, keeping the vehicle in good operating order, and choosing a vehicle model that has good resale value.<\/p>\n<p style=\"text-align: justify\">On the other hand, you have much more flexibility in controlling operating costs. Fuel, for example, can be controlled by optimizing routing, limiting idling, using fuel cards, etc. Maintenance is another area that can be controlled by implementing a strong preventive maintenance program for vehicle care and emerging issues, and a strong safety program to help minimize crashes (and downtime) caused by poor driving behavior.<\/p>\n<h5 style=\"text-align: justify\"><strong>The TCO Continuum<\/strong><\/h5>\n<p style=\"text-align: justify\">Simply put, there is no single factor influencing TCO \u2014 and while the choice of a vehicle may be determined by TCO, it\u2019s value to the operation should be the primary consideration.<\/p>\n<p style=\"text-align: justify\">The good news is that most shuttles have good TCO, but that doesn\u2019t mean that it can be left to take care of itself. In fact, managing TCO is key goes hand-in-glove with profitability.<\/p>\n<p style=\"text-align: justify\">And it begins during acquisition and ends with resale. TCO exists on an operational continuum that touches every aspect of the vehicle\u2019s use.<\/p>\n<p style=\"text-align: justify\">For example, controlling mileage will help reduce fuel use and wear and tear, while helping to improve safety (since fewer miles are being driven). This one operational change will result in a lowered TCO across the board.<\/p>\n<p style=\"text-align: justify\">On the day-to-day operational side, a vehicle that is well-maintained and cared for will be noticed by demanding high-end clients, leading to more business \u2014 which will balance the cost of owning the vehicle.<\/p>\n<h5 style=\"text-align: justify\"><strong>Cycle Time<\/strong><\/h5>\n<p style=\"text-align: justify\">Keeping an eye on TCO at every level will pay off in the long run. When the luxury shuttle reaches its optimal cycle point, that attention you\u2019ve paid to TCO from preventive maintenance to strict driving policies aimed at cutting down wear and tear to routine cleaning will likely be recouped with a <strong><a href=\"https:\/\/www.fleetfinancials.com\/156956\/meeting-the-challenge-of-depreciation\" target=\"_blank\" rel=\"noopener noreferrer\">higher resale value<\/a>.<\/strong><\/p>\n<p style=\"text-align: justify\">Particularly for a luxury van, having a natural vehicle lifecycle in place \u2014 and a means to take advantage of opportunities or extend the lifecycle when necessary \u2014 is an important part of the TCO equation.<\/p>\n<p style=\"text-align: justify\">Running a vehicle too long will end up costing the fleet and its company more than the costs of acquiring a new vehicle. For example, older vehicles tend to experience deteriorating performance and more maintenance \u2014 both of which will affect the bottom line with <strong><a href=\"https:\/\/www.fleetfinancials.com\/309868\/extended-cycling-increases-truck-fleet-total-cost-of-ownership\" target=\"_blank\" rel=\"noopener noreferrer\">more fuel costs and non-productive downtime<\/a>.<\/strong> While you may own the asset outright and it may be still producing revenue, the cost of asset is now siphoning resources from the bottom line\u2014it\u2019s costing you more to own and operate the vehicle than it is making.<\/p>\n<p style=\"text-align: justify\">TCO is complex and requires attention to detail, but it\u2019s worth every moment of time you spend tracking it.<\/p>\n<p style=\"text-align: justify\">The experts at Grech can help you keep an eye on TCO, and with our comprehensive warranty (an important source of TCO value) and customer service, you\u2019ll be able to maximize your return on investment, and add to the bottom line.<\/p>\n<p class=\"p-16-gray\" style=\"text-align: justify\">by AJ Thurber, Vice President, Sales &amp; Marketing, Grech Motors<\/p>\n<p>Source: <a href=\"https:\/\/www.automotive-fleet.com\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.automotive-fleet.com<\/a><\/p>\n<h3 style=\"text-align: center\">FLEET MANAGEMENT AUDIT<\/h3>\n<p>Fleet management is the use of a set of vehicles in order to provide services to a third-party, or to perform a task for our organization, in the most efficient and productive manner with a determined level of service and cost.<\/p>\n<p>Fleet management activities are shown in the following graph 1:<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter wp-image-1106 size-full\" title=\"fleet management activities\" src=\"http:\/\/en.advancedfleetmanagementconsulting.com\/wp-content\/uploads\/2016\/06\/grafico-AFMC-en.jpg\" alt=\"fleet management activities\" width=\"1600\" height=\"800\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/06\/grafico-AFMC-en.jpg 1600w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/06\/grafico-AFMC-en-300x150.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2016\/06\/grafico-AFMC-en-1024x512.jpg 1024w\" sizes=\"(max-width: 1600px) 100vw, 1600px\" \/><\/p>\n<p style=\"text-align: center\">Graph 1: fleet management activities<\/p>\n<p>The proposal audit analyses and assesses all fleet management activities shown in the graph 1, and its main goals are:<\/p>\n<ul>\n<li>Know the overall status of the fleet management activities<\/li>\n<li>Provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet management\u00a0 activities<\/li>\n<\/ul>\n<p>With the information obtained, we\u2019ll elaborate a report that holds the overall status of the fleet management as well as the suggestions, recommendations and the measures to take in order to cut costs and optimize the fleet management activities.<\/p>\n<p>CLICK ON THE FOLLOWING LINK TO DOWNLOAD THE PROPOSED FLEET MANAGEMENT AUDIT:<\/p>\n<h2 style=\"text-align: center\"><a href=\"http:\/\/en.advancedfleetmanagementconsulting.com\/wp-content\/uploads\/2019\/07\/Fleet-Management-Audit-AFMC.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Fleet Management Audit AFMC<\/a><\/h2>\n<p>Contact:<\/p>\n<p>Jos\u00e9 Miguel Fern\u00e1ndez G\u00f3mez<\/p>\n<p>34 678254874<\/p>\n<p>info@advancedfleetmanagementconsulting.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to Calculate a Shuttle\u2019s Total Cost of Ownership Adding a luxury shuttle to your operation involves many factors and not just whether it will add to the revenue stream. While that\u2019s an important consideration, it must be weighed against the cost total cost of owning the vehicle. A vehicle that costs more to operate&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3834,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[156],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/3833"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=3833"}],"version-history":[{"count":0,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/3833\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/3834"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=3833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=3833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=3833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}