What is the primary consideration when acquiring new fleet vehicles?
Total Cost of Ownership (TCO) includes purchase price, fuel, maintenance, depreciation, and resale value.
Which factor most impacts a vehicle’s residual value at disposal?
Market demand, mileage, condition, and model popularity influence resale value.
Why is leasing sometimes preferred over purchasing fleet vehicles?
Leasing reduces upfront costs, offers predictable payments, and transfers residual risk.
What is the key benefit of a competitive bidding process for vehicle acquisition?
Competitive bidding ensures cost efficiency and transparency in procurement.
Which disposal method typically yields the highest return?
Private sales often fetch higher prices than trade-ins or auctions but require more effort.
How does depreciation affect fleet vehicle acquisition strategy?
Choosing models with slower depreciation reduces long-term costs.
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What role does preventive maintenance play in vehicle disposal value?
Well-maintained vehicles command higher resale prices and attract more buyers.
What is a common pitfall in fleet vehicle acquisition?
Over-specifying vehicles (e.g., unnecessary features) inflates costs without adding value.
Why is timing important when disposing of fleet vehicles?
Market cycles (e.g., seasonal demand, new model releases) impact resale prices.