Thinking of upfitting your fleet to better suit your drivers’ needs? Here are the most popular ways to do it (and the reasons why).
Over the decades we have amassed a library of resources, both internal and external, which help our team and our partners do their jobs with skill and confidence. Peruse these pages for current trends and thought leadership, our newsletters, and tips that we have found helpful over the years. And if you have any questions for us, we’re always here for you.
Nine times out of 10—if not more often—the process of retrieving a fleet vehicle from a terminated employee is hassle free.
It used to be that commercial leases came as one fixed offering: fleets were given a monthly rate that was determined by the lease duration and expected mileage. This option (the closed-end lease) is still available, but now fleet managers have another leasing option that allows for more flexibility: the open-end lease.
Lifecycle management is about accounting for a vehicle’s total operating costs. More than just the initial price of the vehicle, lifecycle management includes the costs for fuel, insurance, licensing, routine maintenance and parts replacement—not to mention any costs associated with administration and downtime (the loss of productivity) during repairs.
Why bother with the math? Because it gives you a more accurate idea of when to replace a vehicle in your fleet—saving you money in the long run.
Granted, not all fleets will have the same priorities in managing all the cost variables. For example, one company might be comfortable absorbing the cost of downtime, whereas another company will see it as a direct loss in revenue.
Lifecycle management makes room for managing cost variables differently. There are three widely accepted strategies for vehicle replacement.
Accidents happen. When you manage a fleet, you know this to be inherently true. The question is why does the annual budget for dealing with accidents continue to rise?
When we think about fuel economy, our minds tend to go right to the type of vehicle in use. We think about smaller, lighter vehicles, or hybrid electric models. This makes sense, but it doesn’t help our fleet after the deal is done and the vehicle is sitting in the lot.
The good news is no matter what type of fleet you’re managing, there are always ways to save on fuel. That’s because the way vehicles are driven and maintained contributes to miles per gallon. In fact, according to the Department of Energy, fixing a serious maintenance problem, such as a faulty oxygen sensor, can improve mileage by as much as 25%. Ideally, however, you’re performing regular preventative maintenance, which the DOE says will increase fuel mileage by an average of 5%.
Despite three years of relatively flat tire costs, it’s still not cheap to replce tires in your fleet. With a well-defined tire maintenance program in place, you can save a considerable amount of money by prolonging intervals between replacements. Of course, tire maintenance isn’t only about cost savings. Better-maintained tires mean better fuel mileage, improved driver safety, as well as lower chances of roadside emergencies and expensive downtime.
Since there are several factors that contribute to the life and performance of a tire, here’s some advice that could save you headaches in the long run!
Last month, Black Book released a residual value forecast that highlighted rising vehicle depreciation
Here are highlights from the forecast:
A quick look around the industry tells us that green fleets are here to stay. Whether companies are adding hybrid or all-electric vehicles to their lineup, or are experimenting with alternative fuels, the green movement continues to be top of mind for both manufacturers and brands.
As exciting as technological advancements are, the changeover to a green fleet is not necessarily a straightforward one. Adding hybrids and electric vehicles (EVs) is not the same as bringing a traditional vehicle on board; they require different parts, different infrastructure, and have different cost models.
If you’re new to fleet management, you’ve probably heard telematics get tossed around in your research. And while the industry has some great advice about how to integrate telematics or how to interpret the data that comes from monitoring the fleet, there aren’t as many articles that discuss the basics.