Expanding Fleets FAQ

It’s no secret: New Zealand’s population is booming, and infrastructure spending is growing. Auckland, Hamilton, Tauranga, Waikato and Queenstown councils have secured $1 billion in Government funding for infrastructure projects, and the Government has announced a $18.5 million spending package aimed at improving the transport network in the South Island’s West Coast Region .

With a surge in construction and population, companies may be looking at increasing staff numbers and resources – including upgrading or adding new vehicles to the fleet.

But before you commit to expanding your fleet, there are some key questions you should ask yourself:

Could current fleet vehicles be better utilised?

It may be that vehicles are sitting unused for long periods, or that vehicles could be shared more effectively between teams. Try to get some solid data around the use of the vehicles. Ask around within the crews or teams to help identify shortages and surpluses of vehicles. It may become evident that a smaller or slightly different vehicle already in stock can be used to assist on projects. The National Fleet Manager for Taratahi Agricultural Education Centre , Ivan Allanson, found that GPS tracking data helped make future decisions about the fleet, including shuffling the vehicles within the organisation and considering leasing a small portion of vehicles over owning them.

New, Used or Leased?

Consider if you want to buy a new or used vehicle, and whether leasing might make sense – especially if you have a short-term or highly specialised upcoming project, or need to take cashflow into account. There are pros and cons for each option, but start with looking at your budget and your projected future needs for the vehicle. If you do buy, one feature of Teletrac Navman’s software is that you can keep a detailed record on your WOFs, licences, servicing, and notes on extra maintenance for each vehicle, helping to keep your investment in best condition.

What are you using it for? What size do you need?

Ask operators and drivers what they consider key factors for a purchase, what they like about the current vehicle and what improvements would be useful. For trucks, sizing is important. If you skimp on power, you may have trouble carrying or towing what you need. Similarly, if you buy too big, it will cost you more to purchase and every time you fill up. A good rule of thumb is to have about 10 percent more capacity than you need. If you are unsure about the requirements, most manufacturers put spec sheets and towing guides on their website.

Will I need a RUC licence?

RUC Licence fees are based on multiple factors such as gross vehicle mass (GVM), weight, the number of axles and tyres per axle. For vehicles under 3.5 tonnes the decision is based on fuel type. Petrol, liquefied petroleum gas (LPG) and compressed natural gas (CNG) are already taxed at the pump, but diesel vehicles need a RUC. Electric vehicles and vehicles that are not designed for regular road use – including some used in construction, forestry, industry and agriculture – are exempt. NZTA has a calculator to give you an indication of what the costs may be on your new purchase. If you have a large fleet of vehicles that you regularly use off-road, your business is eligible for RUC refunds from the New Zealand Transport Agency (NZTA).

Check out our Road User Charges FAQ to learn more.

Should I consider alternative fuel systems?

Currently New Zealand’s electric vehicle fleet is small, but alternative fuel technology is advancing quickly and being implemented worldwide. With alternative fuel systems including electric, hydrogen cell, and hybrid trucks becoming more available, consider how new tech might be used in your business and when, or how, you may like to make the change. Read through trade publications for the most up-to-date and relevant news. There could be significant cost savings, as the NZ Government is actively encouraging the use of electric vehicles through reducing ACC levy rates, offering RUC exemptions, and boosting vehicle charging infrastructure.

What new vehicle tech do I need?

New vehicle purchases offer an ideal time to upgrade in cab and remote vehicle systems. According to NZ Truck and Driver , “industry observers have warned that by the 2020s manufacturers and businesses that resist new technology will be left behind by those that adopt it.” Again, see what’s on the market and if there’s a certain tech that can help solve a regular problem or headache within your business, or make a certain area more efficient.

Take the time to make a smart decision and future proof your business.