The process of selecting the best and most appropriate vehicles for your fleet to fit the purpose of your business is very crucial. A company operating a cleaning service would for instance need minivans and sedans while a company operating delivery and freight forwarding service will need heavy duty trucks.
Vehicles for a company’s fleet can be acquired through direct purchase or leasing. There may be financial and operational reasons to alternate between procurement methods. This basically means you are not restricted to one methodology and can alternate between the procurement methods.
If your company decides to acquire its fleet through outright purchase, a trusted source such as an auction house, an auto dealership or a verified independent re-seller is recommended. The advantages you will enjoy is that many dealerships offer fleet discounts for bulk purchases and will afford you the opportunity to uniformly apply your company’s logo and branding across your fleet. Unfortunately, outright purchase comes with a huge financial investment which could put a dent in your budget.
If your company intends to lower its monthly cost and also have the option of updating its fleet every few years, Vehicle lease is the better option. Leasing is more economical and will help your company operate more current and trendy fleet of vehicles. In an ideal lease, a leasing agreement which covers the terms of the lease such as monthly installments, length of the lease, mileage stipulation as well as maintenance requirements will be signed between your company and the entity that owns the vehicles. The disadvantage of this method is that your company will be liable for any damages to the vehicle when the lease agreement is terminated. It could be argued that insurance can cover that, but that is still an important consideration for the manager of the fleet.
In selecting vehicles for your fleet, the fleet manager has to also consider whether to go in for more environmentally friendly “Green” fleets or traditional fleets. Global climate change and the general call to reduce CO2 emissions has pushed Green Fleets to the forefront of research and public scene. The advantages a properly managed green fleets hold over traditional fleets is that it reduces your company’s vulnerability to volatile fuel prices as well as the life cycle cost (maintenance inclusive) of the fleet while reducing your Fleets carbon footprint. Green Fleets also make use of alternative fuels, fuel reduction policies, operational efficiencies, advanced technologies, etc.
In conclusion, when selecting your Fleet, bear in mind that consumers favorably view companies that have more environmentally friendly business practices and products. Proposed legislation backed by the United Nations in both developed and developing countries is likely to force companies in the transportation industries to focus more on greener fleet options – indicating that greener fleets is the future and the best way to go.