How Much Does Fleet Management Cost? The Ultimate Guide 2023

Fleet tracking 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.

As the experts in fleet software, we’ve been researching and advising automobile managers for over a decade. You can feel reassured as we’re best placed to take the wheel on this one.

Fleet management tech includes a very broad range of gear. So broad, in fact, you’ll often see it referred to as “telematics,” which basically means monitoring equipment from far away.

These are the key gadgets:

• 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
• Dashcam – Monitors road and driver activity, including collisions
• Behavior monitoring system – records harsh braking, speeding, idling, etc
• Vehicle diagnostics – Keeps an eye on the wear and tear of the automobile
• Temperature sensors – Detects and adjusts the heat levels within the cab, engine or both
• Messaging system – Keeps drivers in contact with managers
• Asset tracker – Fixes a location on pricey equipment like diggers or trailers

All of the above feed info into an easy-to-read dashboard you can monitor from your computer. This is the central fleet management software – the computer program underpinning everything.

Fleet management costs can quickly stack up as it’s easy to get excited and agree to buy everything. That wouldn’t be wise in times of spiraling inflation, though, would it?

To help you out, in this guide, we’ll look at:

• Fleet management costs per vehicle in 2023
• Hidden costs of telematics tech
• How to calculate fleet management costs
• How to save money on fleet monitoring equipment

Average Fleet Management Costs in 2023

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 could expect the following features:

• An ELD (to record hours of service)
• Digital DVIR (Driver Vehicle Inspection Reports)
• A physical GPS tracking device
• Vehicle diagnostics (may be a paid upgrade for advanced types)
• Driver behavior monitoring
• Messaging system

However, if you’re willing to skimp on some features, there are also providers who offer deals as low as $14 per vehicle, per month.

Meanwhile, for heavy-duty vehicles that need advanced tracking and diagnostics, the cost can increase significantly to as much as $499 per vehicle, per month.

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.

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 figure out your fleet management software costs, you’ve got to bear in mind 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 – sometimes this is included for free, sometimes it’s 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

Of course, all these costs will vary depending not only on your business goals, but also the vendor you choose. Luckily, though, many providers are willing to be flexible about the features they’ll include or leave out. That means one provider may be able to offer you a better rate if you don’t like the first price suggested.

Let’s look at an example to help you out.

To sign up for fleet management automation software with Fleetio, you’ll have to commit at least five vehicles. Costs for its Starter package are $4 per vehicle, per month. Say you have 11 vehicles, that’s $44 per month or $528 per year.

Fleetio’s price packages are 14-33% cheaper if you pay for a one year contract, rather than monthly. The Starter package has the biggest discount when paying over a longer duration. Its features include:

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

Remember to look carefully at the specific features of any provider you look into. That’s the only way you’ll get full transparency about costs. We can set you up with a sales call from fleet management program providers if you’re interested.

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

With GPS tracking prices, you get what you pay for – usually, the more sophisticated the system, the more expensive it’ll be. That’s why, in this case, simply plumping for the cheapest option you find is not a good strategy.

One thing to understand is that, when it comes to GPS vehicle tracking and fleet management, there will be a worthwhile return on your investment (ROI). Advanced systems in particular can help you to cut fuel costs, reduce dangerous driving, dispatch jobs quickly, stay on top of vehicle maintenance, plan efficient routes, and more.

But what makes a basic system basic, and a high-end system high-end? Really, it just comes down to two things:

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

1. The features it comes with

Basic systems aim simply 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. That’s why they’re cheap.

Meanwhile, the best fleet management systems can do this and 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.

They’re more expensive, sure – but you’ll see a much chunkier return on your investment. Higher cost systems are particularly helpful for truck fleet management because of the higher fuel costs. 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 that it sends data to you automatically, usually at set intervals throughout the day (as opposed to passive systems, with which you need to manually transfer data from each device to a computer at the end of the day – not very convenient).

As you’d expect, systems that refresh your data more frequently tend to cost more. Why? Well, firstly, because they give you a more 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.

Secondly (though this isn’t always the case), the systems that offer faster data refresh tend also to be more advanced in terms of features and customizability – hence, it makes sense that they cost more.

Fleet Management Hidden Costs You Should be Aware of

Unfortunately, your monthly fee (and upfront hardware costs, should you choose to pay them), may not be the only charges you end up forking over. That’s right, we’re talking about the two most unglamorous words in the history of business services: additional costs.

In the case of fleet and truck GPS tracking systems, additional costs come in two forms:

1. Add-ons – the extra hardware and features you choose to add to your package
2. Additional charges – the extra fees your provider (or a third party) charges you for certain services

1. Extra hardware and feature add-ons

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

• ELDs (electronic logging devices) – for keeping your fleet compliant with FMCSA regulations
• Dash cams – for capturing incidents and keeping drivers safe
• Asset and trailer trackers – for when you want to track assets that aren’t vehicles
• Temperature monitors – for vehicles that transport temperature-sensitive goods, such as food
• Driver ID kits – to enable your system (and therefore you) to identify who’s driving each vehicle
• Staff training – to ensure that you and your drivers know how to use the system to its full potential

It’s really difficult to give a clear estimate of the add-on costs you might face. It’ll depend on what you decide your fleet needs, and what your specific provider has decided to charge extra for – what one fleet management company sells as an add-on, another might simply include as part of its key package.

2. Additional charges

As well as the cost of any additional hardware or features you might need, your supplier might ask for you to pay:

• Installation fees – what your supplier charges to have engineers come to your business and install your tracking devices in your vehicles. Having said that, installation fees are rare – of the many suppliers we researched, GPS Insight and Verizon Connect do charge for installation, depending on your package and hardware of choice. However, most providers either provide hardwire installation for free, offer plug-and-play devices that you can simply plug into your OBD ports yourself, or – in just one or two cases – expect businesses to hardwire the devices themselves.

• Customization or bespoke design costs – for example, if you’d like your software interface and trackers to be adorned with your business’ branding

• The cost to integrate your fleet management system with the other software tools you use to run your business – for example, payroll programs, health and safety apps, CRM systems, accounting tools, and more.

• The cost of any external technical support you may need. If you buy your devices outright, or your supplier doesn’t provide a robust support and maintenance offering, it may be that you’ll need to pay extra to have faults investigated and fixed.

• The cell/network charges accrued by your system.

• Any geofence fees applied by your supplier. Some suppliers will work with you to decide on geofences – virtual geographical boundaries that your vehicles aren’t supposed to cross – and charge you if your vehicles travel beyond them. This can be the case if you’ve paid less in exchange for a smaller coverage zone.

• Termination fees, which are charged by some vendors if you decide a system isn’t for you and cancel your contract.

How to Save Money on Fleet Management Costs in 2023

Of course, there are a few ways to be a little canny and minimize your fleet or truck GPS tracking prices as much as possible. Check out our six tips:

1. Compare quotes from different providers

It may sound obvious, but it’s really important. You’ll only know you’re getting the best deal for your needs if you’ve compared the options available to you.

If that sounds a little tedious, don’t worry – we can help! Tell us about your fleet by filling in our free quote finding form, and you’ll receive tailored quotes from several Expert Market-approved fleet tracking suppliers, giving you the power to easily compare the companies that can cater to your needs, and their prices.

2. Look out for long, auto-renewing contracts

When leasing a fleet management system, it’s worth being aware of how long your contract is going to last. As a first-time user, you’ll be better off with a shorter contract that won’t rope you into forking over for years to come.

You should also be clear on whether your contract will auto-renew when it comes to an end. If it will, make sure you understand how to cancel the renewal if needed. Most providers have a deadline by which they need users to tell them they’d like to cancel – and for some, this deadline comes months before the contract’s end date – so don’t get caught out.

3. Check your cancellation period

Following the installation and setup of your system, some suppliers offer a ‘cooling off period’ in which you can decide that the system isn’t right for you, and cancel it without being charged.

If you don’t cancel within this time frame, you might be stuck paying for a system you don’t want for as long as the contract you’ve signed lasts – so make sure you know exactly how long you’ll have to make the decision!

Most fleet management providers give cancellation periods of either 14 or 30 days – with Verizon Connect offering the former, and Quartix the latter. Others, including Samsara, will give you a bespoke cancellation period that depends on your fleet’s size and needs.

4. Look for free trials

It makes sense to try before you buy! While lots of fleet management systems don’t, some will enable you to use their system for free for a certain period of time (usually 30 days) before deciding whether you want to enter into a contract.

Verizon Connect and Samsara offer free trials, while Quartix and GPS Insight will consider providing one on a case-by-case basis. Azuga offers a free trial too, but only to businesses with more than 30 vehicles in their fleets.

5. Look for a package that includes everything you need

Investigate what’s included in the fleet management package – and, crucially, what isn’t. As we explored earlier, different suppliers will charge different amounts for different add-ons. It’s worth finding one that either includes all the functions you need under its base monthly price, or can provide them for as small an extra charge as possible.

6. Opt for a scalable system

As your business and fleet grows, you 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.

So, 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 who’s the best. We consider a range of categories such as driver management capability, vehicle management features, hardware features, compliance, and integration.