For many government agencies, universities, and utilities, vehicles are a necessary investment. But here’s the truth: a surprising percentage of fleet vehicles sit idle most of the time.
Underutilization isn’t just wasteful—it’s expensive. Every unused vehicle adds unnecessary costs for fuel, insurance, depreciation, and maintenance. Worse, it ties up budget dollars that could be used elsewhere.
The good news? With the right data and processes, you can identify underutilized vehicles and reclaim those costs.
A vehicle is considered underutilized if it’s used significantly less than peers of the same class or below your organization’s threshold (e.g., 30% usage).
Common signs include:
Vehicles averaging fewer than 200–300 miles per month
Repeated “no-shows” or canceled reservations
Department-assigned vehicles that rarely leave the lot
Seasonal peaks with long periods of downtime
Even when parked, vehicles cost money. Underutilized vehicles bring hidden expenses such as:
Depreciation: Every unused car still loses value year over year.
Insurance premiums: Insurers don’t adjust for idle vehicles.
Maintenance: Low use often leads to neglected preventative maintenance and higher repair costs later.
Opportunity cost: Money tied up in idle assets could fund EVs, tech upgrades, or staffing.
Use motor pool software to track:
Miles driven
Reservation frequency
Hours in use vs. parked
Compare usage rates by site or department to highlight outliers.
See when vehicles are most needed. Often, fewer vehicles can cover demand if scheduling is automated.
Challenge departments that hold vehicles “just in case.” Many times, a shared pool serves them better.
Reallocate: Move low-use vehicles to high-demand sites.
Right-size: Reduce fleet size based on actual data.
Repurpose: Transition underutilized sedans or vans for training or backup.
Retire/Sell: Free up capital for new technology or EV investment.
A county fleet running 400+ vehicles found that nearly 20% of its sedans were used less than once per week. By right-sizing the fleet and reallocating assets, they reduced annual costs by hundreds of thousands of dollars while improving overall vehicle availability.
Idle vehicles quietly drain public-sector budgets. By tracking utilization, comparing across sites, and making data-driven adjustments, your organization can eliminate waste while improving service.