Business Vehicles

Whether you own, finance or lease your business vehicles, it pays to consider all aspects to save money.

It is not only about make, model and colour.

Managing vehicle fleets whether owned or not can be costly. Not just the cost of operation but also the costs of compliance. Changes to tax laws generates changing feast of exceptions, clauses and variations which can be a challenge to keep track of let alone manage. Not just for a finance team but also for the compliance issues imposed on employees to do logbooks and/or collect expenses.

Many organisations have opted for a one-solution- fits-all approach with operating leases or novated leases to simplify the process. All for a seemingly low monthly admin fee.

However, there are complexities including recent changes to accounting standards which require operating leases to be included on the balance sheet. This can affect liquidity and working capital ratios which may have a flow-on effect on debt governance and the cost of cash flow facilities.

Regardless, it is clear that there are many factors which can impact the cost of a vehicle to your business.

Transparency creates accountability

Supply Clusters helps you manage all of your vehicle expenditure with up to date data on Vehicle expenses through our Standing Offer Arrangement in our member portal. Simply sign up to our Standing Offer and your data will be available 24/7. Members have access to all of their data including detail on every single transaction from procurement through to disposal. Join today, start saving on Operating Lease and see all the detail you need to manage your needs:

  • Quantity and Spend by period
  • Reporting by cost centre and vehicle
  • Full transparency of charges across finance, lease, admin costs and fuel

What factors impact vehicle costs?

Are your vehicles business-owned? Leased? Chattel mortgage? Or do you compensate (or not) employees for private vehicles? It is important to consider the following:

Before purchase

Before you make a commitment, understanding what is right for your business (or employees) is critical. Are you choosing the right make, model or brand of vehicle? What depreciation will apply to the ideal make or model over time? Will you be left with negative equity? Is it better to lease, finance or buy? Do you have all the information you need to make an informed decision?

Purchase / Procurement

Getting the right price on a new or used vehicle is more than knowing someone. It is a combination of factors. As well as knowing the industry inside and out. The right procurement approach can deliver a 2-3% saving over and above what you may negotiate yourself. If you are trading in or selling a prior vehicle – how do you maximise the value to you or your business?


The right finance product is dependent on many factors. There is no one-size-fits-all solution. One provider is unlikely to offer the best rates at all times. So, only doing the same thing you did last time may not be smart. Finance should be considered in line with the complete vehicle strategy. A more flexible loan rather than lower interest rate may deliver lower cost of ownership.

Fleet Management / Operation

Fleet management is a delicate balance. It is important to not only manage the operation and usage of vehicles. But, to also consider other aspects such as FBT reporting, asset equity and exceptions/trends. This allows the business to better manage cost around vehicle use.


When is the right time to sell? Well, that depends on the make, model, financing and much more. Operating purely on a fixed schedule may not account for normal wear and tear in lease clauses nor allow for market equity value.

Better buying outcome

A better buying outcome helps streamline procurement, management and disposal of vehicles in the fleet. This approach helps you to minimise cost, maximise tax breaks and mitigate risk to your company.

  • Smart technology means less time spent on administration and better service to employees.
  • A high service culture delivers better ease of use.
  • Ongoing monitoring reduces the possibility of significant charges at end of lease/finance or not achieving optimal equity.
  • Capped admin fees ensures no surprises later on.

Supply Clusters Offer

Supply Clusters partner with Fingo as part of a total vehicle solution

Members receive the following benefits from Fingo

  • Save money on procurement of company vehicles either owned or leased
  • Detailed reporting to streamline tax requirements
  • Capped administration fees per month per vehicle
  • Rebate payable (Premium Members) on lease contracts
  • Ordering and buying behaviour compliance tools
  • Detailed tracking to determine the optimal time to change vehicles
  • On-line portal to access your spend data