Fleet Expense Management: Complete Guide to Boosting Profitability

Fleet expense management is the systematic approach to tracking, analyzing, and controlling all costs associated with operating company vehicles. With the average cost per mile reaching $2.26 in 2024 and non-fuel operating expenses hitting record highs, fleet managers need the right tools and strategies to protect their bottom line.

This guide covers how to track fleet expenses, reduce fuel spending, prevent fraud, and make data-driven decisions that deliver significant savings.

Key Takeaways

• Cost per mile hit $2.26 in 2024, with non-fuel expenses at a record $1.779 per mile.
• Fuel spending represents 20-30% of total fleet costs and is the most controllable expense.
• Fleet fuel cards offer discounts of $0.45- $2.00 per gallon, plus fraud protection up to $250,000.
• Preventive maintenance reduces repair costs by 25-35% compared to reactive-only service.
• Fuel fraud impacts 1-3% of transactions, with some fleets losing up to 22% of fuel spend.
• Data analytics and automated reporting turn raw numbers into actionable insights for cost reduction.
• Driver behavior training can reduce fuel consumption by 10-20% through eco-driving techniques.
• Spending controls such as daily limits, PIN requirements, and purchase restrictions help prevent unauthorized use.

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What Is Fleet Expense Management and Why Does It Matter?

Fleet expense management is the process of monitoring, analyzing, and optimizing all costs associated with operating fleet vehicles. This includes fuel consumption, maintenance, insurance premiums, vehicle acquisition, repairs, and administrative overhead.

For businesses that rely on trucks, vans, or service vehicles, fleet management costs are among the biggest expenses on the balance sheet. The American Transportation Research Institute (ATRI) found that operating a single truck costs an average of $2.26 per mile in 2024. For a 10-truck fleet running 100,000 miles annually, that translates to over $2.2 million in total costs per year.

Without proper fleet cost management, businesses face unpredictable expenses, cash flow problems, and shrinking profit margins. Fleet managers who implement systematic expense management gain better visibility into spending patterns, identify savings opportunities, and make informed decisions that directly improve profitability.

How Much Do Fleet Operations Really Cost?

Understanding the true total cost of ownership requires breaking down fleet expenses into three categories: fixed costs, variable costs, and indirect costs.

Fixed Costs

These remain relatively constant regardless of how many vehicles operate:

• Vehicle acquisition costs: Purchase prices or lease payments for fleet vehicles
• Insurance premiums: Coverage for liability, collision, and cargo
• Licensing and registration fees: Annual compliance requirements
• Depreciation: The gradual loss of vehicle value over time

Variable Costs

These fluctuate based on fleet utilization and driving behavior:

• Fuel costs: Typically the largest variable expense, representing 20-30% of total operating costs
• Maintenance: Scheduled services, oil changes, brake repairs, and tire replacements
• Repairs: Unscheduled fixes for breakdowns and costly repairs
• Tolls: Highway and bridge fees that accumulate quickly

Indirect Costs

Often overlooked, these expenses significantly impact efficiency:

• Administrative overhead: Fleet management software subscriptions, staff salaries
• Downtime: Lost revenue when vehicles are out of service
• Compliance penalties: Fines for regulatory violations

The ATRI 2025 report revealed that non-fuel operating expenses rose 3.6% to $1.779 per mile—the highest level ever recorded. Driver wages, insurance payments, and equipment costs continue to climb even as fuel prices decline.

What Are the Biggest Expenses Fleet Managers Face?

Fleet managers consistently identify these cost centers as their primary budget challenges:

1. Fuel Spending

Fuel remains the most volatile and controllable expense for most fleets. Fuel consumption directly impacts cost per mile, and small improvements in fuel efficiency compound into significant savings across an entire fleet.

A 10-truck operation burning 167,000 gallons of diesel annually will spend approximately $500,000 on fuel alone at current prices. Reducing fuel use by just 10% saves $50,000 per year.

2. Maintenance and Repairs

Preventive maintenance programs cost money upfront, but prevent far more expensive breakdowns later. Research shows that vehicles on proper maintenance schedules cost 25-35% less in repairs than those receiving reactive-only service.

Fleets that neglect scheduled maintenance face more frequent, costly repairs, extended downtime, and accelerated vehicle replacement cycles.

3. Insurance Premiums

Insurance costs have risen 36% per mile over the past eight years. Fleets with poor safety records, high accident rates, or inadequate driver training pay substantially more for coverage.

4. Vehicle Replacement

Knowing when to replace aging vehicles versus continuing repairs is crucial for managing total cost. The average truck replacement cycle dropped to 7.3 years in 2024, as fleets balance acquisition costs against rising maintenance expenses.

How Can Fleet Managers Track and Reduce Expenses?

Effective fleet cost management requires accurate data, consistent monitoring, and the right tools to turn information into actionable insights.

Implement a Fleet Fuel Card Program

A dedicated fleet fuel card transforms how businesses track and control fuel spending. Unlike consumer credit cards, fleet cards provide:

• Transaction-level data: See exactly what was purchased, when, where, and by which driver
• Spending limits: Set daily, weekly, or per-transaction caps to prevent overspending
• Purchase restrictions: Limit cards to fuel-only or approve specific categories
• Automated reporting: Generate expense reports without manual data entry
• Fraud protection: Block unauthorized purchases before they happen

AtoB's fleet card delivers average savings of $0.45-$2.00 per gallon on diesel at 99% of U.S. fuel stations. For a fleet burning 167,000 gallons annually, that's $75,000-$334,000 in fuel savings alone.

Use Data Analytics for Decision Making

Modern fleet management software centralizes all fleet-related expenses into a single dashboard. Fleet managers can:

• Track cost per mile by vehicle, driver, or route
• Identify which vehicles have the highest operating expenses
• Compare actual versus budgeted spending
• Spot trends that indicate emerging problems

Data analytics transforms raw numbers into actionable insights. When you can see that one vehicle costs 40% more per mile than the fleet average, you can investigate whether it needs repairs, a different route, or replacement.

Monitor Driver Behavior

Driving behavior significantly impacts both fuel efficiency and maintenance costs. Aggressive acceleration, speeding, harsh braking, and excessive idling waste fuel and accelerate wear on brakes, tires, and engines.

Telematics systems track these behaviors in real-time, allowing fleet managers to:

• Coach drivers on good driving habits
• Reduce fuel consumption by 10-20% through eco-driving training
• Lower accident rates and insurance premiums
• Extend vehicle lifespan through gentler operation

Using cruise control on highways, avoiding rapid acceleration, and minimizing idle time are simple changes that compound into substantial savings.

Establish Preventive Maintenance Programs

Reactive maintenance—waiting until something breaks—costs far more than scheduled preventative maintenance. A blown tire on the highway doesn't just cost $500 for replacement; it causes hours of downtime, missed deliveries, and potential safety incidents.

Create maintenance schedules based on:

• Manufacturer recommendations
• Mileage intervals
• Engine hours
• Seasonal needs (winterization, AC service)

Track all maintenance in your fleet management software to identify vehicles that consistently need more attention. This data helps determine optimal vehicle replacement timing.

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How Do Fleet Cards Prevent Fraud and Unauthorized Spending?

Fuel fraud costs the trucking industry millions annually. Studies show that 1-3% of all fleet fuel transactions are fraudulent, with some fleets losing up to 22% of fuel spend to fraud and misuse. Card skimming accounts for 75% of external fuel fraud, while internal employee misuse makes up nearly 9%.

A proper fleet card program protects against both threats:

External Fraud Protection

• PIN requirements: Unique driver PINs prevent unauthorized use of lost or stolen cards
• Real-time monitoring: Instant alerts flag suspicious transactions
• Spending controls: Automatic declines for purchases outside normal parameters
• Location verification: Match transaction locations against expected routes

Internal Fraud Prevention

• Purchase restrictions: Block non-fuel purchases at the pump
• Odometer validation: Require mileage entry to catch impossible fuel quantities
• Driver-specific cards: Track exactly who spent what, when, and where
• Time restrictions: Limit card usage to working hours

AtoB provides $250,000 in fraud protection, indemnifying fleets against spend fraud and theft. Combined with app-based card unlocking, telematics integration, and custom spending rules, businesses eliminate most fraud opportunities before they occur.

What Is Cost Per Mile and How Do You Calculate It?

Cost per mile is the fundamental metric for understanding fleet efficiency. It measures total cost divided by total miles traveled, giving fleet managers a standardized way to compare vehicles, routes, and time periods.

Basic Cost Per Mile Formula

Total Fleet Expenses ÷ Total Miles Driven = Cost Per Mile

For example: $500,000 in annual expenses ÷ 500,000 miles = $1.00 per mile

Breaking Down Cost Per Mile

Track cost per mile across categories to identify savings opportunities:

• Fuel cost per mile: Total fuel spending ÷ miles driven
• Maintenance cost per mile: Total maintenance ÷ miles driven
• Insurance cost per mile: Annual premium ÷ miles driven
• Total cost per mile: All expenses combined ÷ miles driven

The industry average total cost per mile was $2.26 in 2024. Fleets operating above this benchmark should investigate where their costs diverge from industry norms.

Using Cost Per Mile for Cost Analysis

Cost per mile data enables better decision-making:

• Vehicle comparison: Identify which trucks in your fleet operate most efficiently
• Route optimization: Compare cost per mile across different routes
• Driver performance: See which drivers achieve better fuel efficiency
• Replacement timing: Determine when repair costs make vehicle replacement more cost-effective
• Budget forecasting: Predict future expenses based on projected mileage

How Does AtoB Help Fleets Reduce Fleet Management Costs?

AtoB provides comprehensive fleet expense management through an integrated platform that combines fuel savings, payment controls, and operational tools.

Deep Fuel Discounts

AtoB's network spans 3,500+ truck stops and 30,000+ gas stations with average diesel savings of $0.45-$2.00 per gallon. The FuelMap optimizer identifies the cheapest fuel along your routes, adding approximately $0.21 per gallon in additional savings.

Complete Spending Controls

Fleet managers set limits on:

• Daily, weekly, and per-transaction spending
• Approved purchase categories (fuel only, maintenance, etc.)
• Time-of-day restrictions
• Geographic boundaries through geofencing

Automated IFTA Reporting

AtoB automatically pulls data from your TMS and merges it with fuel card transactions to produce ready-to-file IFTA documents. This saves time on quarterly tax reporting and potentially thousands in accurate fuel tax calculations.

No Personal Guarantee Credit

Unlike traditional fleet cards that require owners to guarantee credit personally, AtoB offers credit access through proprietary cash-flow-based underwriting. This protects personal assets while providing the credit businesses need for fuel and operating expenses.

Driver Payroll Integration

Beyond fuel, AtoB handles driver pay, offering early wage access—helping fleets attract and retain drivers in a competitive labor market.

24/7 Multilingual Support

Support is available around the clock in English, Spanish, Hindi, and Punjabi, with call pickup times under 30 seconds.

What Steps Should Fleet Managers Take to Control Fleet Costs Today?

Implement these strategies to start reducing fleet spending immediately:

1. Audit current expenses: Gather all fleet related expenses from the past 12 months and calculate your cost per mile baseline
2. Implement a fleet fuel card: Replace consumer credit cards with a dedicated fleet card that provides discounts, controls, and accurate data
3. Establish spending limits: Set appropriate caps based on routes, vehicle types, and driver needs
4. Create maintenance schedules: Move from reactive to preventative maintenance to avoid costly repairs
5. Train drivers: Focus on fuel efficiency techniques and good driving habits that reduce fuel use and wear
6. Track cost per mile weekly: Monitor trends and investigate anomalies quickly
7. Review vehicle utilization: Ensure you have the right vehicles for your operations—not too many, not too few
8. Plan for vehicle replacement: Use total cost of ownership data to determine optimal replacement timing

Final Thoughts

Fleet expense management isn't a one-time project—it's an ongoing discipline that separates profitable fleets from those struggling with razor-thin margins. With operating costs at record highs and fuel prices remaining unpredictable, the businesses that invest in proper cost management tools and strategies gain a competitive edge.

The combination of accurate data, automated reporting, spending controls, and fuel discounts through platforms like AtoB gives fleet managers everything they need to track expenses, reduce costs, and make cost-effective decisions that protect their bottom line.

Start by understanding your true total cost of ownership, then systematically address each cost center with the right tools and processes. The savings add up quickly—and in today's challenging freight market, every dollar saved is a dollar of profit protected.

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Citations:

1. https://truckingresearch.org
2. https://www.uschamber.com
3. https://www.ftc.gov
4. https://www.nafa.org