A key variable in total cost management is knowing when to dispose of your vehicles. It impacts the total depreciation (purchase cost less resale value) of your vehicle as well as repair and maintenance costs.
Disposition and Remarketing: Top Strategies for Selling Fleet Vehicles and the Most Overlooked Aspect of Fleet Management
A top strategy for selling fleet vehicles starts years earlier with vehicle selection and continues with proper maintenance. Selecting the proper options, colors, and features when acquiring vehicles yields greater returns when selling vehicles at the end of their holding periods. For example, an extended cargo van costs $900 more initially. It will yield a $1,500 premium over a traditional van at resale. Picking the right model, color, and options are paramount. Maintenance, condition, and cleanliness have meaningful impact on resale as well. Properly maintaining a vehicle throughout the lifecycle will make your vehicle stand out from its peers and command a premium.
Getting into a car accident is stressful, to say the very least. While your insurance might cover the cost of inflicted damage, it’s impossible to “repair” the diminished value of your car. A two-year-old Porsche Cayenne S that’s never been in an accident is worth $67,000. Following a collision, that same Porsche is worth only $50,000, no matter how superb its repairs were.
The diminished value paradigm may seem logical, but when it comes to managing the financial impact of an accident, especially when you’re not at fault, opportunities to recoup monetary losses are invaluable. Luckily, you have a resource to reestablish your vehicle’s worth: a diminished value claim.
Part 1 covered vehicle qualification for sales tax exemption using a transportation company.
Next, we will discuss how to establish a transportation company and what’s required on an ongoing basis to operate a transportation company.
Does your fleet qualify as a transportation company? Save on sales tax.
Many states’ sales tax laws (including Wisconsin) exempt companies from paying sales tax on vehicles, leases, and maintenance if they use their own fleet of trucks to deliver goods to their customers. Exemptions are statutory, not loopholes, and are closely regulated but can save companies significant costs. In order to take advantage of this exemption, a company needs to create a transportation company.
Fleet Wellness aims to improve the health of your vehicle fleet and save money.
This is the third of five key pieces that explain Fleet Wellness. We have covered the first two Fleet Wellness tenets: Strategy and Measurement. The third is Total Cost Management, a much more holistic and inclusive look at fleet costs than is common in automobile analysis. It’s lifecycle costs and a lot more.