Current sales of electric vehicles are largely driven by incentives, and while incentives help move the metal on the new-vehicle front, they have a negative effect when it comes to residual values.
Depreciation is a necessary evil in our industry. Knowing your risks and knowing your OEM partners won’t make depreciation go away but it can make it more manageable.
Plan ahead for the future and have discussions with your senior management about costs and what the future has in store for your fleet. While it looks like the cost of a gallon of gasoline may be going down, the cost of everything else is going to go up.
Volkswagen's diesel models have lost their value in the auction lanes at a much sharper rate than comparable gasoline models since revelations came to light that the company had included a software cheat in the vehicles to beat emissions tests.
Mainstream electric vehicles (EV) are depreciating much faster than their gas sister models, according to new data from Black Book.
The latest auction figures point out a few important trends: First, the market for certain types of vehicles is definitely getting softer. Second, there really isn't one "used-vehicle market" anymore.
For the past three years, everyone has been a remarketing genius. The low inventory of used vehicles in the wholesale market helped inflate resale values by about 10 percent. However, as greater volumes of used vehicles begin to enter the wholesale market, vehicle supply will start to meet buyer demand, which will put downward pressure on resale values. In many ways, the new used-vehicle market will demand returning to the basics, namely recognizing the seasonality of the used-vehicle market.
How much of a fleet’s annual budgeted dollars are wasted? Is it 5 percent, 10 percent, or even more? In my mind, eliminating waste is the proverbial low-hanging fruit. Before implementing new fleet initiatives requiring new dollars, let’s make our No. 1 priority to stop the waste of existing dollars. Let's examine the fleet-related areas that are rife with waste and discuss the protocols you need to minimize it.
The recent breathtaking increase in gasoline and diesel prices gives us a reality check as to how quickly fuel can dramatically increase fleet operating expenses. With fuel prices at a near all-time high and ongoing strong resale values decreasing depreciation costs, will fuel costs overtake depreciation as the No. 1 fleet expense in 2012, as it almost did in 2006?
Nearly all fleet-related costs, both fixed and operating, are influenced by when a vehicle is replaced. Today’s exceptionally strong wholesale market caused by the shortage of used vehicles offers commercial fleet managers an “out-of-the box opportunity” to short cycle vehicles. A shorter 24-month replacement cycle will maximize resale values, reduce operating costs and downtime, increase negotiating leverage with OEMs, and improve driver morale,
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