For being a great fleet manager all you need to have is an effective fleet management system. But how much does this GPS tracking system cost — is it costly or cost-effective? Such questions arise when managing numerous vehicle fleet tracking, as you require every possible resource available to save on fuel costs, increase efficiency, and comply with regulations. We understand how hard it can be to stay on budget, as fleet costs are simple to calculate yet difficult to control. Whether you are operating a large fleet or a small fraction of vehicles, it is vital to understand several factors before investing in a vehicle fleet tracking system. It goes into determining the cost of a particular GPS device or system.
At times, fleet owners confuse the costs associated with a fleet tracking solution, whether the benefits are worth the price. While there are many variables to this decision, the good news is that fleet tracking translates into a substantial ROI if you make the right investments. In general, vehicle fleet tracking costs fall into three categories hardware, software, and installation.
Hardware
First and foremost, operating GPS tracking requires integrating hardware into your fleet vehicles and equipment. Overall, there are three types of hardware — OBD II or “ plug and play” devices, hardwired devices, and battery-operated devices. If you seek better security and visibility, then the installation of dash cameras can prove to be a better option.
The Cost of Vehicle Tracking Hardware
Vehicle trackers range from USD 60 — USD 100 may be obtained at no cost with a long-term contract or financed over time, as per the research study. Moreover, equipment trackers costing up to USD 300 can also be financed as a stand-alone investment. Whereas, when it comes to purchasing dash cameras, the cost can vary as per the requirement. For instance, dash cameras; requirements for tracking commercial fleet needs software, and a monthly software agreement helps the organization capture triggering events and send information to fleet management in real-time.
Tracking Software and Monitoring
Another category required for GPS tracking devices is software and monitoring, which come with monthly expenses. Apart from being a part of a contract, these tools give you access to the mapping platform that allows you to track, set landmarks, get alerts, and all necessary reports. Therefore, choosing and using the right software leverages your GPS solutions to optimize routes, increase efficiency, and monitor driver progress. This tracking software and monitoring devices can increase driver productivity and see a significant ROI monthly.
The Cost of Vehicle Tracking Software and Monitoring
Standard monthly agreements function on an auto-pay basis, per vehicle pricing. According to the research study, the costs range from USD 15.95 — USD 30 per month per vehicle. In contrast, plans for cameras range from USD 37 — USD 90 per month. However, depending upon the features requirement frequency of pings to the mapping platform, the price is bound to vary. It is evident to have a reliable mapping platform that is secure and has little downtime. Moreover, a GPS provider may keep costs low by providing more infrequent pings, but opting for a 10-minute ping does not give real-time data that will help you manage your fleet.
Installation
Self-installation and professional installation are the two approaches to installing your GPS tracking systems. With the help of a professional, you can install all your units at one time and get your system up and running faster. It not only frees you from allocating staff hours to installation but also ensures your unit is installed and operating accurately. On the other hand, the term self-installation explains it all, where OBD II-compatible tracking devices can be plugged directly into your OBD II port by you or your staff. The driver and mechanics easily operate the device. However, this method slows down the process, as the staff installs the devices when time permits.
Cost of Installation
Getting your devices professionally installed is pretty affordable, as it ranges from USD 50 — USD 125 per vehicle for standard GPS tracking. There may be additional costs for heavy equipment and cameras.
Benefits of Installing Vehicle Tracking Device
For instance, whether you are a business owner with a fleet of vehicles or a private individual with vehicles installing a GPS tracking device proves to be one of the most reliable and efficient ways of protecting it from crime and monitoring the whereabouts of your fleet and loved ones. Although the device’s price can be costly, it ensures to lower your insurance premiums and save you a huge amount of hassle on fuel costs, wages, insurance, tickets, and accidents, in the long run, or if your vehicle is seized.
According to industry experts and research data, most companies worldwide have saved much more than they spend in the first year. Overall, the fleet tracking device is proven to improve vehicle recovery, so they are undoubtedly a good idea from a security standpoint. However, from an economic upside to investing in a vehicle tracking system, if you own an expensive car and have a tracking system fitted, you are likely to get access to a wider choice of insurers, which generally means lower car insurance premiums.
Several insurers also offer discounts for having an accredited vehicle tracking system installed. It also improves recovery rates mean which are less likely to make an insurance claim. Thereby saving on the claims excess and sparing your no-claims bonus, avoiding all the hassle like making a claim, living with a hire car, and buying a new vehicle. Nevertheless, there are tons of quantifiable benefits to investing in a GPS fleet tracking system.
Save on fuel
The operational fuel cost of the fleet accounts for an average 13% reduction in costs, representing a significant saving for fleets with GPS tracking installed.
Less vehicle downtime
As per the research study by the Aberdeen Group, users of fleet management systems benefit from up to 15% less vehicle downtime, as drivers can complete trips faster, giving you more choice over how and when to deploy vehicles for different assignments.
Cut CO2 Emissions
According to NAVTEQ research, GPS vehicle tracking devices helps in reducing your carbon footprint by up to 21%.
Cost of GPS Tracking System
In terms of complexity and price, vehicle fleet tracking systems vary a lot. As per the industry experts, for most sophisticated systems, the GPS fleet tracking costs start at roughly USD 18 per month, increasing to about USD 65 per month.
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