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Resale Value

7 Reasons Why Vehicle Condition Should Not be Part of an Employee's Annual Job Review

If an employee threw trash all over the office floor, scratched the paint off the walls, broke the light bulbs, left holes and dents in the wallboard, and skipped routine maintenance on the copier until it overheated and broke, no manager would tolerate this abuse. Yet, that is exactly what some companies tolerate when drivers abuse their company-provided vehicles.

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Top 13 Trends in Commercial Fleet Management

Without a doubt, the top two challenges facing fleet managers are cost containment and safety. This pressure is emanating from senior management, mandating fleet managers reduce costs and minimize liability exposure.

Vehicle Abuse: An Overlooked Remarketing Cost

The resale value of a used vehicle is determined by three factors: the unit’s age, total mileage, and overall condition. A used company vehicle in poor condition, because of driver abuse or neglect, will result in lost resale value or incur unnecessary reconditioning expense at auction. Here's what you can do to minimize vehicle abuse.

Identifying Missed Cost-Cutting Opportunities

Fleet managers can focus too much on the price of the products and services they buy, which can leave some cost-cutting opportunities unexplored.

Resale Basics 101

Fleets can achieve higher resale values by following some basic principles. Fleet remarketing experts share their expertise.

Resale Values Forecast to Decline 10-15% by 2014 as Used-Vehicle Supply Increases

Today’s high resale values are an anomaly caused by the shortage of used vehicles in the wholesale market due to the extremely low sales of new vehicles during the 2008-2011 timeframe. Nowadays, everyone is a hero when it comes to getting top dollar for their out-of-service fleet vehicles. However, these artificially high prices will ultimately decline as used-vehicle supply increases.

Fleets Reassess Amortization Rates

In the commercial fleet industry, the most common amortization rate used for establishing a depreciation reserve is 50 months. Recently, some major fleets extended amortization rates on new-vehicle orders.

Depreciation Up in Most Vehicle Segments

According to industry analysts, most vehicle segments increased in vehicle depreciation in 2009 due to such factors as extended replacement cycling, shifts in the wholesale vehicle market, and higher capitalized vehicle costs.

The Hidden Cost of Personal Use

Many companies are wondering whether they are charging enough for personal use. At some companies, this discussion is long overdue. When re-evaluating personal use charges, a common mistake is to focus solely on the cost of fuel. However, doing so ignores the other “hidden” costs of personal use, which have also risen.

Top 6 Fleet Trends in the Medium-Duty Truck Market

Medium-duty truck sales have declined sharply, as have resale values, due to the recession and the slowdown in new construction. Many fleets are extending service lives, which threatens to increase future maintenance costs.