How Much Does Fleet Management Cost? The Ultimate Guide 2024

Fleet management costs range from $25 to $45 per vehicle, per month. However, for large vehicles and trucks, prices can get as high as $499 per vehicle, per month.

How much your system costs will depend on a few things: your business priorities, fleet size, cargo types, weather concerns, road risks, and compliance needs, to name a few.

We’ve been researching and advising automobile managers for over a decade, so you can rest reassured that we’ll give you the best advice about your new fleet tracking system.

The years following the pandemic have been rocky for the trucking industry, with part shortages causing a large portion of the troubles. A majority of service shops (66%) needed to wait longer for parts to arrive this year, compared to last. The shortage also caused moderate to severe disruption for 68% of repair shops.

While there’s little you can do to influence supply chains, knowing when your vehicles are likely to be due for repairs can help a lot. Fleet telematics will allow you to monitor the equipment of your business without the need to be on site

Fleet management costs can quickly stack up as you may want to include everything in your package. This wouldn’t be wise in times of spiraling inflation, though. Rather opt for a provider that can offer you the specific features needed by your company.

To help you out, this guide will cover:

• Fleet management costs per vehicle for 2024
• Hidden costs of telematics tech
• How to calculate fleet management costs
• How to save money on fleet monitoring equipment

What is Fleet Management?

Fleet management is an umbrella term which broadly encompasses a range of practices, software and hardware which help fleet managers run a successful operation. The main objective is to monitor your vehicles, equipment, drivers and cargo to maintain proper running conditions, boost efficiency, complete jobs faster, reduce costs and operate safely.

These are the key tools that can help you monitor your equipment and hit those objectives:

• Electronic Logging Device (ELD) – records drivers’ hours of service for compliance
• GPS tracking device – sends live updates about a vehicle’s location, speed, and status
• Dash cams – monitor road and driver activity, including collisions
• Asset tracker – fixes a location on pricey equipment like diggers or trailers
• Behavior monitoring system – records harsh braking, speeding, idling, etc
• Vehicle diagnostics – keeps an eye on the wear and tear of the automobile
• Temperature sensors – detect and adjust the heat levels within the cab, engine or both
• Messaging system – instant communication between drivers and fleet managers

Information is collected from the above tools and fed into an easy-to-read dashboard that you can monitor from your computer. This is your central fleet management software, the program that underpins everything.

Average Fleet Management Costs for 2024

On average, businesses can expect to pay between $25 to $45 per vehicle, per month for a standard fleet management system. At this price you can expect the following features:

• An ELD (to record hours of service)
• Digital DVIR (Driver Vehicle Inspection Reports)
• A physical GPS tracking device
• Driver behavior monitoring
• Messaging system

Some providers offer deals for as low as $14 per vehicle, per month. That being said, you may miss out on some of the more sophisticated features like real-time tracking, advanced analytics, vehicle diagnostics, geofencing and more complete customer support options.

However, heavy-duty vehicles usually require advanced tracking and diagnostics, and the cost can increase to as much as $499 per vehicle, per month.

See below for a breakdown of vehicle tracking costs from some of the top providers on the market.

How to Calculate Fleet Management Costs

Like any business, fleet management has fixed and variable costs. The former includes the big expenses you’ll likely pay upfront to get the business off the ground. Examples include: purchasing vehicles, licensing costs, buying fleet management trackers, and software. Use a fleet cost analysis to figure out exactly how much your fixed and variable costs are.

Variable costs are the day-to-day expenses that crop up. These could be: fuel, driver wages, payouts for accidents, insurance premiums, legal costs, repairs, and vehicle maintenance.

To calculate your fleet management software costs, first consider these key factors:

• The size of your fleet – subscription costs are generally charged per vehicle, per month 
• What’s included in your package – some providers charge more for GPS integration, compliance features, asset trackers, and so on
• Installation – this can be included for free, offered as a paid add-on, and sometimes you’ll need to self-install
• Contract length – you’ll pay more month-to-month than you would on a longer contract

All of these costs will vary depending on the goals of your business and the vendor you choose. Luckily, many providers are flexible about the features they’ll include or leave out. This means one provider may offer you a better rate if you aren’t happy with the first price suggested.

As an example, to sign up for fleet management automation software with Fleetio, you’ll have to commit at least five vehicles. The cost of its Starter package is $4 per vehicle, per month. If you have 11 vehicles, this is $44 per month or $528 per year (when paid monthly).

Fleetio’s price packages are a dollar cheaper if you opt in for a one-year contract, rather than monthly. For example, the Starter plan is $4 per vehicle, per month when billed monthly, but $3 per vehicle, per month when billed annually. The different of a dollar may not sound like much, but these savings will add up over time, especially with larger fleets.

Fleetio’s Starter plan includes features such as:

• Vehicle inventory records
• Maintenance scheduling
• Driver vehicle inspection reports (DVIR)
• Reporting on vehicle costs

Remember to look carefully at the specific features of each provider. This is the only way you’ll get full transparency about costs. To take advantage of this, we can set you up with a sales call from fleet management program providers.

Basic vs. Advanced GPS Tracking Systems: How Much Do They Cost?

With GPS tracking prices, you get what you pay for; the more sophisticated the system, the more expensive it’ll be. This is why choosing the cheapest option is not a good strategy.

When it comes to GPS vehicle tracking and fleet management, there will be a worthwhile return on your investment (ROI). Advanced systems, such as those from Verizon and Samsara, can help improve fuel efficiency, reduce dangerous driving, dispatch jobs quickly, stay on top of vehicle maintenance, plan efficient routes, and more.

What are the key differences between a basic system and a high-end system? It comes down to two things:

1. The features it comes with
2. The frequency at which its data refreshes

1. The features it comes with

Basic systems aim to track the routes your vehicles take. Some also offer a handful of other simple features, such as trip logging, starts and stops recording, basic reporting, and perhaps one or two alerts – but they don’t often offer much in the way of sophisticated fleet management. This is why they cost less.

Meanwhile, the best fleet management systems can do this and so much more. They tend to come with a whole host of helpful features, including:

• Fuel consumption reporting
• Detailed driver behavior monitoring
• Vehicle diagnostics and maintenance alerts
• Incident reporting
• Advanced route planning
• Theft prevention alerts

These systems aim to help you to gain insight into your fleet’s performance, helping you cut unnecessary operating costs, identify and improve areas of weakness, and run an all-round more efficient business.

While they do cost more, you’ll see a much chunkier return on your investment. Pricier systems are particularly helpful for truck fleet management because of the higher fuel costs involved. Better insight means more opportunities to bring down gas wastage (from idling, poor engine maintenance, deflated tires, poor choice of gas, and other causes).

2. The frequency of its data refresh

Any modern fleet management system worth its salt is active, which means it will send you data automatically, usually at set intervals throughout the day.  Passive systems will require you to manually transfer data from each device to a computer at the end of each day – not very convenient.

As you’d expect, systems that refresh your data more frequently tend to cost more. This is because they give you an accurate picture of where your vehicles are. It’s the difference between gauging your vehicle’s location based on where it was 30 seconds ago, versus where it was five minutes ago.

The systems that offer faster data refresh, such as Motive and Verizon, also tend to be more advanced in terms of features and customizability.

Fleet Management Hidden Costs You Should Be Aware Of

It is worth noting that your monthly fee and hardware costs may not be the only charges you’ll receive. That’s right, we’re talking about the two most unglamorous words in business budgeting: additional costs. Sometimes these are optional, so it’s worth negotiating if you feel any of these are too high or simply unnecessary.

There are two main types of fleet and truck GPS tracking system costs:

1. Add-ons: feature upgrades on hardware or software
2. Service fees: extra charges for certain services

1. Extra hardware and feature add-ons

Alongside the main offering, some fleet management companies give you the opportunity to add extra hardware and software features to your bundle, for an additional cost. These add-ons might include:

• ELDs (electronic logging devices) – to keep your fleet compliant with FMCSA regulations
• Dash cams – to capture incidents and alert drivers during unsafe events
• Geofencing – to trigger alerts if your vehicles stray outside of defined geographical zones
• Asset and trailer trackers – to track fleet-related equipment
• Temperature monitors – to safely transport temperature-sensitive goods
• Driver ID kits – to identify the driver of each vehicle
• Staff training – to ensure proper equipment use

Fleet costs will depend on what your business needs, and the schedule of fees specific to each provider.

2. Service fees

These can be really sneaky, so we recommend you look out for the following extra charges:

• Installation fees – complex installations such as hardwiring may incur an engineer callout fee. You won’t pay these if you select plug-and-play devices that you can easily set up yourself.

• Integration fees – to connect your fleet management system with other software (such as payroll programs, CRM software, or delivery notification apps).

• Cell/network charges – to cover the cost of transmitting data from your tracking devices back to your central unit. These are generally significant and unavoidable. Roaming charges may apply too.

• Technical support fees – in case you need particular assistance with your equipment. This may include troubleshooting, software upgrades, or data migration

• Customization or bespoke design costs – for example, if you’d like to add your brand logo to the software interface

• Termination fees – these usually apply if you cancel your contract before its end-date

How to Calculate Total Cost of Ownership

To gain full visibility over your fleet management expenses, you’ll first need to calculate the total cost of ownership (TCO). This takes into consideration the full spectrum of expenses involved in operating your fleet.

The first step is to break down your expenses into two categories: fixed and variable.

Fixed costs are those that generally stay the same week in, week out. This includes:

• Purchasing and leasing vehicles
• Telematics and vehicle tracking devices
• Insurance premiums
• Taxes
• Depreciation
• Licensing and registration
• Loan repayments

Then there are the variable costs, which include:

• Fuel and EV charging
• Vehicle maintenance software and repairs
• Driver wages (dependent on hours/mileage)
• Parking
• Telematics subscription fees

Since many of the variable costs are constantly fluctuating, such as fuel and driving hours, tracking software is a huge benefit when calculating an accurate TCO in real time.

To keep costs down, our advice is to look at your variable costs. Fixed costs are consistent and unavoidable overheads, while variable costs fluctuate directly with usage and other factors. Analyzing the combination of fixed and variable costs can help you better project and influence your overall fleet TCO.

Cost per mile is another useful metric within TCO. This number is achieved by adding your fixed and variable costs together then dividing the total sum by the miles driven. Determining your fleet’s cost per mile offers you a greater perspective with which to simplify your budgeting, identify inefficiencies, and support investment decisions.

How to Switch and Save Money on Fleet Management Costs in 2024

It’s tricky to pinpoint your contract renewal window – you need to read your contract carefully to find out when you’re able to exit. Once you’ve identified the sweet spot, it’s time to start looking for a new deal. This is your chance to reduce your fleet software costs as much as possible.

Check out our top tips:

1. Compare quotes from different providers

It may seem obvious, but this step is really important. You’ll only know you’re getting the best deal for your business if you’ve compared the options available to you.

It can be a tedious process, but we can save a lot of time and effort if you simply fill in our free quote-finding form. You’ll be linked directly to Expert Market-approved fleet tracking suppliers. It’s a one-stop shop for fleet cost comparison, with no obligation to buy and the choice to opt out at any time.

2. Look out for auto-renewal contracts

It’s common for fleet telematics contracts to renew automatically – some, like Verizon Connect, will do this two or three months before the contract’s end. Most providers have a deadline by which they need users to tell them they’d like to cancel (or at least opt out of auto-renew).

Make sure you know exactly when you can cancel your contract without early termination fees. Set a reminder in your calendar as soon as you’ve found the cancellation window as a reminder to review the deals currently on offer.

3. Check for a free trial period

Many fleet software providers offer money-back guarantees if you cancel within 30 days – Verizon Connect does this, for instance. This is helpful because you can try the software without a financial commitment. Check out our Verizon Connect review to learn what we thought of it.

Azuga also offers a free trial, but only to businesses with more than 30 vehicles in their fleets. Others, including Samsara, will give you a cancellation period based on your specific contract. Quartix offers a free online demo.

4. Cancel parts of your contract

It’s a little-known fact that you can generally cancel parts of your subscription without pulling out of your contract altogether. This is a really handy way to save on costs for additional services that aren’t serving you anymore. It can work as an alternative solution when you can’t find a better overall deal on the market.

If you write to your account manager, you can set this process in motion. You’ll need to check your contract carefully, but you’re able to further reduce your subscription services at certain intervals during your contract.

It’s complicated, we know. But it may line up with the notice period you need to give to cancel your contract altogether (for instance, 60 days before the contract is set to end). Just check the terms and conditions for this handy trick.

5. Choose a scalable system

As your business and fleet grows, you’ll want a fleet management system that can grow with it. This is particularly relevant for agile business models that have to adapt quickly. Courier software is a great example.

Investigate your supplier’s process for adding more vehicles to a system, and how much it’ll charge you to do so. If it seems like it’ll be really pricey or weirdly complex, it could be a good idea to keep looking.

Our Fleet Management Expertise

We conduct expert research on fleet management tech through our in-house product specialists team as well as our industry contacts. To come up with scores and rankings, our head of research defines areas of investigation that matter most to fleet managers of small to mid-sized businesses.

We then assess products against 60 criteria, assigning points for each one met. The categories are weighted to ensure that your priorities – including price visibility, customer support, range of features, and value for money – determine which provider is best. We consider a range of categories such as driver management capability, vehicle management features, hardware features, compliance, and integration.