The Hidden Costs of Underutilized Fleet Vehicles—and How to Spot Them
For many public-sector fleets, the real challenge isn’t too few vehicles—it’s too many vehicles that are barely being used. These underutilized assets quietly drain budgets through depreciation, insurance, and maintenance, even when they spend most of their time parked.
By learning how to spot and address underutilization, agencies can right-size their fleets, improve efficiency, and reallocate resources where they matter most.
What Underutilization Looks Like
A vehicle is considered underutilized when its usage falls significantly below the fleet’s average or fails to meet established benchmarks. Warning signs include:
• Vehicles averaging fewer than 200–300 miles per month
• Reservation histories showing multiple “no-shows” or cancellations
• Department-assigned cars that rarely leave the lot
• Seasonal demand spikes that leave certain vehicles idle for months
The Hidden Costs of Keeping Idle Vehicles
Even parked vehicles cost money. Underutilized vehicles contribute to:
• Depreciation that reduces resale value year after year
• Ongoing insurance premiums regardless of use
• Preventative maintenance and inspections on assets that deliver little value
• Opportunity cost when budgets tied to idle vehicles could fund technology, EV adoption, or staffing
How to Spot Underutilized Vehicles
The key to addressing underutilization is data. Best practices include:
• Track utilization metrics like mileage, reservation frequency, and hours in use
• Benchmark usage across sites and departments to highlight outliers
• Use heat maps of demand to determine peak times and locations
• Audit department-assigned vehicles that may be candidates for pooling
What to Do About It
Once you’ve identified underutilized vehicles, act decisively:
• Reallocate them to higher-demand locations
• Retire or sell assets that consistently fall below usage benchmarks
• Replace assigned vehicles with a motor pool model
• Repurpose vehicles for training or backup needs
Case Study: Adapt Integrated Health
Adapt Integrated Health faced the challenge of managing vehicles across four counties. Through detailed utilization tracking and centralized scheduling with FleetCommander, the organization reduced its projected fleet size needs by 55 percent while still expanding access to more than 85 vehicles. This shift freed up significant funds that would have otherwise been tied to underused assets.
The Bottom Line
Underutilization is one of the biggest hidden costs in public-sector fleets. By analyzing utilization data and taking action, agencies can right-size their fleets, reduce waste, and improve service delivery.
Steve Minter
