Our mobility budget was last updated in 2021, but everything is running smoothly! Or is it?

The end of the year is approaching. Budgets are being discussed, costs are being reviewed, and plans for next year are taking shape. But is your company fleet also on the agenda?

It's budget season again!

October, November, December. For many companies, these are traditionally the months when budgets for the coming year are discussed.

Personnel costs, investments, IT, marketing, operational expenses... Everything comes under scrutiny. Where can we optimise? Which costs are increasing? And which budgets need to be adjusted?

But what about mobility?

Company cars are on the road, employees are happy, and monthly lease invoices are being paid on time. Everything under control, right?

Perhaps. But when was the last time your mobility budgets were truly reviewed?

If the answer is "2021", it might be time to change that.

"We only have 10 company cars"

A fleet doesn't have to be large to represent a significant expense.

Take a company with 10 company cars and an average Total Cost of Ownership (TCO) of €700 per vehicle per month.

That means:

• €700 per vehicle per month

• €7,000 for the entire fleet per month

• €84,000 per year

And that's for a fleet of "just" 10 vehicles.

With 25 vehicles, the same average TCO already represents €210,000 per year. And with 50 vehicles, that figure rises to €420,000.

Of course, these are illustrative figures. The actual TCO depends on factors such as vehicle type, contract duration, mileage and taxation.

Nevertheless, they clearly show that mobility represents a significant budget item, even for smaller companies.

Yet it doesn't always receive the same level of attention as other major business expenses.

An annual expense of €84,000? Surely that's worth taking a closer look at.

2021 called. It wants its mobility budget back.

The company car landscape has changed considerably over the past five years.

Electric vehicles have become increasingly common in corporate fleets. Charging infrastructure, home charging and reimbursement arrangements have become part of everyday operations for many companies. Tax regulations and cost structures have evolved as well.

Yet we still see companies working with mobility budgets and agreements that were established several years ago.

And that isn't necessarily a problem. At least, not if those budgets still reflect today's reality.

But when was the last time anyone checked?

Are the budget categories still realistic? Are the right vehicles being offered? Are mileage contracts still aligned with actual usage? And what does mobility really cost today?

A budget that made sense in 2021 isn't automatically the right budget for 2027.

The lease price doesn't tell the whole story

When discussing mobility budgets, the monthly lease price is often the first thing people look at. Understandably so, as it's a clear and recurring expense.

But the lowest lease price doesn't necessarily mean the lowest overall cost.

Taxation, energy consumption, insurance, maintenance and other expenses all contribute to the final cost.

That's why it's important to look at the Total Cost of Ownership (TCO), rather than focusing solely on the monthly lease invoice.

And even then, there's more to the story.

How much time do HR, Finance or other employees spend managing the fleet?

Think about driver questions, damage claims, invoice checks, contract renewals and monitoring charging costs.

These internal management costs are often overlooked in mobility budgets, even though they have a real impact on business operations.

A fleet can therefore appear to be running perfectly smoothly, while there is still considerable room for optimisation behind the scenes.

Budget planning is the perfect opportunity to review your company car policy

Setting budgets for 2027 is an excellent opportunity to look beyond the numbers. After all, mobility budgets and company car policies go hand in hand.

A company car policy determines, among other things, which vehicles employees can choose, within which budgets and under what conditions.

But if these arrangements haven't been reviewed for several years, do they still reflect today's market?

Perhaps certain vehicle categories could be structured differently. Maybe there are opportunities to optimise costs without compromising employee comfort.

Or perhaps the analysis will simply confirm that the current policy is still working exceptionally well.

That's a valuable conclusion too.

The goal isn't to cut costs at all costs, but to make informed decisions based on up-to-date figures.

Five questions to ask during your 2027 budget review

Is mobility on the agenda for your upcoming budget discussions? If so, here are five questions that shouldn't be overlooked.

1. What is our actual annual fleet cost?

Do we have a clear overview of our fleet's total TCO, or are we mainly looking at lease invoices?

2. Are our current mobility budgets still in line with the market?

Do our budgets still reflect available vehicles, current tax regulations and our expectations?

3. Do our contracts still match actual usage?

Are mileage allowances and contract durations aligned with how employees use their vehicles today?

4. How efficient is our internal fleet management?

How much time do our employees spend on fleet-related tasks, and could these activities be organised more efficiently?

5. When did we last critically evaluate our suppliers?

Are their rates and terms still competitive? And are we receiving the level of service we're paying for?

Not having an immediate answer to every question isn't necessarily a problem. But it does highlight where additional insights could be valuable.

Make 2027 the year you regain control of your mobility costs

Effective fleet management doesn't mean constantly switching suppliers, reducing budgets or completely rewriting your company car policy.

Above all, it means understanding what your fleet costs, why it costs that much, and where opportunities may exist to operate more efficiently.

And you don't need a fleet of hundreds of vehicles to benefit from that approach.

Even with just 10 vehicles, a critical review can deliver valuable insights.

At Fleetastic, we help companies gain those insights. From strategic assessments of mobility budgets and company car policies to the day-to-day operational management of their fleets.

Because mobility shouldn't just run smoothly. It should also be financially and operationally under control.

So, when the 2027 budgets are put on the table, don't forget about your company fleet.

Perhaps everything is still perfectly in order.

Or perhaps it's finally time for that long-overdue update since 2021!