6 Hidden Expenses of Small Fleet Managers

Despite keeping a record of every operational expense, sometimes small fleet managers are unable to realize or understand where some money has been spent. Sure, you they are doing their best to reduce the cost. But still, there are so many unnecessary expenses that keep piling up.

The only way you can figure out and cut down on these expenses is to keep track of them. However, it is quite understandable that with so many pending tasks at your end, keeping such records can be challenging.

We present to you the six main hidden expenses of small fleet managers. To help sketch a rough idea in your mind as to where your potentially hidden expenses lie.

1.    Speeding

One of the hidden expenses of small fleet managers lies in their driver’s speeding habits. What does a recent statistic say? Accoring to research conducted by the US Department of Energy, average fuel consumption starts to increase by 2% for every mile per hour driven. Concluded for a speed greater than 50MPH.

Unsustainable driving behaviour can therefore lead to increased fuel costs without you being able to rule this out initially.

2.    Vehicle Abuse

Rash driving, hard braking, steep acceleration, or deceleration alone tend to compromise the vehicle’s strength in the long run. Although there is no noticeable change in your vehicle as there is no accident, this remains a hidden expense that soon becomes visible when your vehicle gets faulty.

Moreover, inadequate, or irregular maintenance further adds to this concern as the performance and condition of your vehicle tends to worsen over time. Again, you cannot figure out this expense unless it becomes very obvious.

3.    Payroll Inaccuracy

According to the National Association of Fleet Administrator, another key hidden expense is inaccurate time logs resulting in approximately 7% of overtime paid to operators.

Most drivers tend to change their actual in and out timings while recording them on the logs for checking. If done right, an overall 7% reduction in overtime pay due to accurate time reporting will be able to generate labour savings of 12%-14% annually.

4.    Fuel Cost Management

One major issue small fleet managers face is keeping a strict record of fuel costs and optimizing them. Small fleet managers tend to allow their drivers to take vehicles home or permit any domestic use of the vehicle.

This eventually makes them a victim of additional fuel costs as well as maintenance costs. When the driver tends to use the company’s allocated resources for their use by using the company’s vehicle for an after-hours side business, the small fleet managers and their companies have to suffer.

5.    Fleet Management Costs

Whether small fleet managers use manual resources to record essential data or use technology, many hidden investments can cost.

Ongoing investments in technological features to optimize your work and automate driver management can become one of your necessary expenses without you even realizing it.

However, even if you use manual fleet management, you need to hire a group of people who will manage all the human resources – the required logistics will still be a significant expense.

6.    Storage Costs

Another hidden yet unavoidable expense for small fleet managers is paying the rent of the parking space where your vehicles will park after business hours. You’ll either have to let employees take the cars home, which will be even more costly, or rent a parking lot. Regardless of what you go with, storage expenses will always be there.


Small fleet managers face numerous unnecessary and unavoidable expenses when taking care of small fleet businesses. What matters isn’t how you prevent them but how well you track them and eventually develop an approach to save that money.

If you want a deeper analysis, a better understanding of where you could potentially save money, get in touch with our Drivestar team. We focus on smaller fleets, so we understand your specific needs.  

If you wish to know more tips and tricks to save up some extra bucks while managing a fleet, don’t forget to follow us on social media platforms like Facebook and LinkedIn!