In developing countries if you over budget for vehicles you will overspend on vehicles. Poor vehicle budgeting is the most common vehicle management mistake of organizations working overseas. Budgets contain costs- the accuracy of good vehicle budgeting controls them. Inaccurate vehicle budgeting simply contains your costs to the line item in question it does not control or reduce your costs to the optimum.
Most people feel that vehicle budgeting is difficult because they tend not to be able to separate all the various aspects of vehicle costs and particularly because they have difficulty in predicting repair costs.
To produce a vehicle budget you need the following information:
If you put this information into the following recipe you will have a rough and ready budget:
You should never budget in the above manner for anything else than ball park. Do not use this budgeting schema for controlling or projecting costs, rather use your own cost base from your own vehicle management.
A proposal for improving your vehicle management can be downloaded here.
"fleet-serve is simple, to the point and effective because it turns our vehicle data into good advice and information" D Summers, Managing Director, Clarke Cotton, Zambia
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