--- title: A Fleet Procurement Strategy to Boost Your Bottom Line description: Learn how a fleet procurement strategy can save your business time and money. image: https://blog.fossnational.com/hubfs/Blog%20Images/2022/Fleet%20Procurement%20Update/fleet-procurement-strategy.jpg --- - Login & Support - [Driver login](https://driverportal.fossnational.com/(S(j3l4ffvs10c4pg5kst3wihvl))/login.aspx?ReturnUrl=%2f) - [Fleet manager login](https://fossfleet.com/portal/#login) - [Support](https://dev-foss-national-leasing.pantheonsite.io/en/support) - [Vendor Support](https://dev-foss-national-leasing.pantheonsite.io/en/vendor) [Fuel & Maintenance Locator](https://www.fossnational.com/en/fleet-maintenance-vendors) [Search](https://blog.fossnational.com/hs-search-results?hsLang=en) [![FNL-Logo](https://blog.fossnational.com/hubfs/Foss%20Blog%20Template/Images/FNL-Logo.svg "FNL-Logo")](https://www.fossnational.com/) - Lease Your Vehicle - [Business Leasing](https://www.fossnational.com/en/business) Choose from open-end or closed-end lease offers—greater flexibility, fewer restrictions, and real benefits for businesses. - [Short term vehicle leasing](https://www.fossnational.com/en/short) Lease a vehicle for 1-24 months with no early termination fees or end-of-contract settlements. - [Zero emission vehicles](https://www.fossnational.com/en/zeroemission) Consider switching to zero-emissions vehicles to reduce your organization's greenhouse gas emissions. - Manage your vehicles - [Fleet Cards](https://www.fossnational.com/en/fleet-cards-canada) Consolidate all your monthly fuel and maintenance purchases with Canada's number one fleet card. - [Remarketing](https://www.fossnational.com/en/remarketing) Maximize your profits from selling used vehicles with our expert support. - [Telematics](https://www.fossnational.com/en/telematics) Monitor real-time drivers' behaviour with our telematics solution, developed in partnership with GEOTAB. - [Safety and risk management](https://www.fossnational.com/en/safety) Protect your drivers and vehicles by managing your fleet's operational risks with a holistic fleet safety program. - [More ways to manage your fleet](https://www.fossnational.com/en/more) Explore worry-free packages that include upfitting, vehicle storage, licensing and title management, and many more. - Resources - [Fuel and maintenance network](https://www.fossnational.com/en/network-search) Access service and repairs through our nationwide network of vendors. - [White papers](https://www.fossnational.com/en/resources-listing) Blogs and white papers developed to help you better manage your fleet and drivers. - [Zero-emissions](https://www.fossnational.com/en/zeroemission) Best practices for reducing your organization's greenhouse gas emissions. - [Case studies](https://www.fossnational.com/en/resources-listing?page=0&category=Case) Learn how we helped other companies improve their fleet operations. - [Articles](https://blog.fossnational.com/) Uncover industry insights, expert advice, and the latest trends in fleet management, vehicle leasing, and mobility solutions. 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That’s why we offer a free quote! - [Get in touch](https://www.fossnational.com/en/getintouch) [![FNL-Logo](https://blog.fossnational.com/hubfs/Foss%20Blog%20Template/Images/FNL-Logo.svg "FNL-Logo")](https://www.fossnational.com) - Lease Your Vehicle - [Business Leasing](https://www.fossnational.com/en/business) - [Short term vehicle leasing](https://www.fossnational.com/en/short) - [Zero emission vehicles](https://www.fossnational.com/en/zeroemission) - Manage your vehicles - [Fleet Cards](https://www.fossnational.com/en/fleet-cards-canada) - [Remarketing](https://www.fossnational.com/en/remarketing) - [Telematics](https://www.fossnational.com/en/telematics) - [Safety and risk management](https://www.fossnational.com/en/safety) - [More ways to manage your fleet](https://www.fossnational.com/en/more) - Resources - [Fuel and maintenance network](https://www.fossnational.com/en/network-search) - [White papers](https://www.fossnational.com/en/resources-listing) - [Zero-emissions](https://www.fossnational.com/en/zeroemission) - [Case studies](https://www.fossnational.com/en/resources-listing?page=0&category=Case) - [Articles](https://blog.fossnational.com/) - About - [Our team](https://www.fossnational.com/en/about) - [Our company](https://www.fossnational.com/en/ourcompany) - [Contact us](https://www.fossnational.com/en/contact-us) - [Careers](https://www.fossnational.com/en/careers) - [Free Quote](https://www.fossnational.com/en/free-quote) - [English](https://blog.fossnational.com) - [Français - Canada](https://blog.fossnational.com/fr-ca) # A Fleet Procurement Strategy to Boost Your Bottom Line January 24, 2022 Written by [Andy Labram](https://blog.fossnational.com/author/andy-labram) / 5 minute read ![](https://blog.fossnational.com/hubfs/Blog%20Images/2022/Fleet%20Procurement%20Update/fleet-procurement-strategy.jpg) Search - Filter By Topics ### Get the latest fleet management news SHARE [mailto:?body=https://blog.fossnational.com/fleet-procurement-strategy](mailto:?body=https://blog.fossnational.com/fleet-procurement-strategy) ![](https://blog.fossnational.com/hubfs/Blog%20Images/2022/Fleet%20Procurement%20Update/fleet-procurement-strategy.jpg) SHARE [mailto:?body=https://blog.fossnational.com/fleet-procurement-strategy](mailto:?body=https://blog.fossnational.com/fleet-procurement-strategy) A solid fleet procurement strategy will help set your business up for success and profitability. But putting an effective procurement plan together can be a challenge. Often, some of the issues companies encounter when vehicle ownership costs rise stem from a lack of planning during the procurement stage. So in this blog, we’re here to help prevent that.  Today, we’ll lay out the key points to nail down when procuring vehicles for your fleet. This strategy will help you source the right vehicles for your business needs, lower your total cost of ownership, and help increase your vehicles' residual value. [Download our guide for key factors to consider when factory ordering your fleet vehicles > >](https://blog.fossnational.com/cs/c/?cta_guid=47a71e8d-b804-4f3f-9c82-e23b612d021e&signature=AAH58kEi5bTXDMwVSA-qF1BX3ym0zUNacg&pageId=18671207001&placement_guid=f96536c3-aba5-4fdc-8ca6-bfb277e4c2e4&click=29add10c-a7fd-4812-b703-86f55d251087&hsutk=21f577e1a32772a8e992fb13ab7e51ca&canon=https%3A%2F%2Fblog.fossnational.com%2Ffleet-procurement-strategy&utm_referrer=https%3A%2F%2Fblog.fossnational.com%2Fhs-search-results%3Fterm%3Dfleet+procurement+strategy%26type%3DSITE_PAGE%26type%3DBLOG_POST%26type%3DLISTING_PAGE&portal_id=6014256&redirect_url=APefjpEW_IWrjEs8XSt9RaI_jKIVNO-WwSdMHTgmZctO4BkLCz_NnGG_0Ypx67Svmf2maM7siR7DTsX3qJd3hYBPWGa5fpSgRSFucyucQI3B1lb2Ewy-63JPbF8TIIgtiXxpwF6ywMlThQMLYUJVvD8jb9HPNSoV45uHVisBEX_3tvk665V750K1vBfWuUWuZ7K0dj5eBvuG3D137fSBoflrkuJ0sowOjYKuTN6C0rKUrkdLcPoCZBGMYPTjm0IIMnzo0jcWMcoOiR-ie_F2N7G_eNijTejfjA&__hstc=8825770.21f577e1a32772a8e992fb13ab7e51ca.1638380854188.1642551247326.1642619929343.43&__hssc=8825770.3.1642619929343&__hsfp=4186157537&contentType=blog-post&hsLang=en) ## Determine What Job Each Vehicle Needs to Do Think about how your employees will be using each vehicle. Will it be deliveries, answering service calls, transporting people to meetings, or carrying equipment on oil rigs? Each situation requires a different vehicle make and model.  Be sure to involve employees in your planning process. They’ll be able to provide insight on what [additional equipment and upfitting](https://blog.fossnational.com/fleet-vehicle-upfitting?hsLang=en) their vehicle will need to get the job done. Allowing extra room in your procurement budget for upfitting will make for a smoother process.  ![equipment-and-upfitting](https://blog.fossnational.com/hs-fs/hubfs/Blog%20Images/2022/Fleet%20Procurement%20Update/equipment-and-upfitting.jpg?width=1500&name=equipment-and-upfitting.jpg) ## Figure Out How Many Vehicles You Need The last thing you want are idle fleet vehicles sitting in your parking lot. Planning out how often you’ll need to use each vehicle, and whether or not employees will share them will help prevent you from ordering too many, or not enough. ## Consider How the Public Will Perceive Your Vehicles  If your employees will use vehicles for service calls, ensuring you have the right branding, and clean, well-maintained vehicles is essential. Even if the vehicles won’t have direct contact with customers, remember that other drivers and pedestrians will notice them while they’re out on the road. Having a plan on how each vehicle presents to the public will help protect your reputation.  For companies that want to portray a sustainability image, choosing hybrid or battery [electric fleet vehicles](https://blog.fossnational.com/evs-are-coming?hsLang=en) will communicate your mandate to the public, while lowering your carbon footprint.  ## Calculate Projected Total Cost of Ownership In order to source the best vehicles for your needs, you'll also need to consider total cost of ownership (TCO) as part of your fleet procurement strategy. Here are some of the elements involved in TCO: ### Depreciation All vehicles depreciate the moment you acquire them. Depreciation accounts for [38% of a vehicle’s total cost of ownership](https://info.fossnational.com/cost-of-ownership-wp?hsLang=en). Leasing fleet vehicles (rather than purchasing them) allows you to add depreciation costs into your monthly expense, so you can track your true costs more accurately.  Keep in mind that different vehicle types have different depreciation rates. Generally, luxury sedans and electric vehicles depreciate significantly faster than pickup trucks and SUVs. If you determine that luxury vehicles or EVs are the correct choice for your required end use, just be sure to factor their increased depreciation into your costs.  Remember that no matter which vehicle you type you have, [keeping your vehicles properly maintained](https://blog.fossnational.com/what-is-fleet-maintenance-management?hsLang=en) throughout their life cycle will slow depreciation.  ### Fuel Costs Today’s new vehicles are more fuel efficient than ever. When you lease your vehicles, you can replace older vehicles with new ones every 4-5 years. This allows you to run a fleet of more fuel-efficient vehicles, which reduces your total fuel cost. Of course, some vehicles will be more efficient than others, and you’ll need to balance the level of fuel efficiency you want with vehicle performance requirements, depending on each vehicle’s end use.  ### Insurance After you’ve determined each vehicle’s end purpose, you may find you have some flexibility in the types of vehicles that could work. If that’s the case, considering the insurance premiums for each vehicle type can help you narrow down your options. If you can get a vehicle that will do the job for a lower insurance payment, that will benefit your total cost of ownership.  ## Leasing vs. Buying Fleet Vehicles: Which Is Better?  For businesses, [fleet leasing](https://blog.fossnational.com/lease-or-buy-a-car-for-business?hsLang=en) offers many operational and cost-savings benefits that buying simply can’t.  If you choose to buy your vehicles, you'll need to use capital to pay for them. Some downsides to this are that the cash from your bank account may have a better use in other aspects of your business, and if you borrow money to pay for your vehicles, it will reduce your ability to borrow for other business needs.  On the other hand, leasing is a monthly operating expense and will not affect your borrowing ability. It allows you a better view in your total operating costs, compared to fleet purchasing.  ![business-vehilce-leasing-benefits](https://blog.fossnational.com/hs-fs/hubfs/Blog%20Images/2022/Fleet%20Procurement%20Update/business-vehilce-leasing-benefits.jpg?width=1500&name=business-vehilce-leasing-benefits.jpg) ### 5 Benefits of [Business Vehicle Leasing](https://www.fossnational.com/business-vehicle-leasing):  1. **You can replace your vehicles regularly**, allowing you to run a newer fleet of vehicles. (Normal lease terms are every 4-5 years, but the term can be as low as one year, or go beyond five years). 2. **Commercial lease payments fall under expenses on income tax returns**, and so can count as deductions. Businesses can deduct $900+ HST per month for new leases, which works out to a maximum of $10,800 in annual tax-deductible expenses. 3. **You’ll have even payments throughout the lease term**, which allows you to predict your cash flow. 4. **You’ll only pay GST on the value of the lease**, rather than the full value of the vehicle, resulting in lower GST payments overall.  5. **The lease provider takes care of the complete life cycle of the vehicle**, including ordering, delivery, and resale of the vehicles, taking those responsibilities off of your plate. ### Final Thoughts To boost your business' bottom line, it's important to be strategic in the vehicle procurement stage. Understanding each vehicle’s end use and projecting your total cost of ownership are two key steps in a successful procurement strategy. Leasing your vehicles provides further benefits and is the most effective option for most businesses.  If you need additional help, fleet management companies provide fleet procurement services, handling your vehicle acquisition and life cycling for you, so you’ll have more time to focus on running your business. [Previous Post](https://blog.fossnational.com/what-is-fleet-maintenance-management?hsLang=en) [View all posts](https://blog.fossnational.com) [Next Post](https://blog.fossnational.com/strategies-for-long-term-savings?hsLang=en) ### Get to Know the Author [Meet our team](https://www.fossnational.com/our-team) ### Get the latest fleet management news ![thumbnail-factory-ordering](https://blog.fossnational.com/hubfs/Premium-Content/PCO%20Thumbnails/thumbnail-factory-ordering.png "thumbnail-factory-ordering") ## Factory Ordering: Purchase the Options Your Fleet Requires For Less Discover the benefits of factory ordering, plus some key factors to consider when purchasing your fleet. [![Download Guide](https://no-cache.hubspot.com/cta/default/6014256/04c6c7bc-fad6-4bef-b874-64cac6590a5f.png)](https://cta-redirect.hubspot.com/cta/redirect/6014256/04c6c7bc-fad6-4bef-b874-64cac6590a5f) ### Recommended Reading [Acquiring & Selling Fleet Vehicles](https://blog.fossnational.com/topic/acquiring-selling-fleet-vehicles?hsLang=en) ##### [Fleet Lease Residual Value: What Is It, and How to Protect Your Equity](https://blog.fossnational.com/residual-value?hsLang=en) By [Hussain Dhanani](https://blog.fossnational.com/author/hussain-dhanani) / May 28, 2026 [Continue Reading](https://blog.fossnational.com/residual-value?hsLang=en) [Acquiring & Selling Fleet Vehicles](https://blog.fossnational.com/topic/acquiring-selling-fleet-vehicles?hsLang=en) ##### [Open-End vs Closed-End Fleet Leases: Which Fits Your Business?](https://blog.fossnational.com/open-end-vs-close-end?hsLang=en) By [Hussain Dhanani](https://blog.fossnational.com/author/hussain-dhanani) / May 25, 2026 [Continue Reading](https://blog.fossnational.com/open-end-vs-close-end?hsLang=en) [Acquiring & Selling Fleet Vehicles](https://blog.fossnational.com/topic/acquiring-selling-fleet-vehicles?hsLang=en) ##### [Should You Lease or Buy a Vehicle for Your Business in Canada?](https://blog.fossnational.com/lease-or-buy-a-car-for-business?hsLang=en) By [Basil Marcus](https://blog.fossnational.com/author/basil-marcus) / May 1, 2026 [Continue Reading](https://blog.fossnational.com/lease-or-buy-a-car-for-business?hsLang=en) ### Subscribe and stay up to date ### Subscribe Here! 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