Pros & Cons of Extending Replacement Policy
It has been “common wisdom” to replace fleet vehicles in relatively short cycles. Rising costs, however, have led fleet managers to consider lengthening replacement
criteria. There are pros and cons to the practice.
Economic Slowdown Causes Fleet Resale Values to Decline
Most fleet vehicles are purchased by subprime buyers; however, these buyers are now finding it increasingly difficult to qualify for used-vehicle loans. The slowdown in the construction market is dampening demand for used pickups, and full-size work vans.
How Will Future Residual Values Impact Hybrid
While hybrids can reduce fleet fuel expense, the two other major fleet expenses — maintenance/repair and depreciation — must also be considered to determine if hybrids are the answer to reducing overall fleet costs.
16 Tips to Maximize Residual Value
Follow these common sense strategies before the acquisition decision, during ownership and prior to resale to help you hold the line on residual values.