Vehicle Cycling Policy Explained
by jimlive Posted on Thursday, October 12, 2017
Every sports fan knows there comes a time when even the most durable athlete needs to retire. The same goes for commercial vehicles. As much as you may love and respect its loyal contribution to your company, a vehicle – like an athlete – past its prime becomes more of a liability than an asset. When your duties include fleet management, you have decisions to make regarding your rapidly diminishing assets; implementing a vehicle cycling policy is a great way to manage the full cycle of your vehicle fleet.
At the end of the day – or more accurately, at the end of the road for a used vehicle – you want to maximize your fleet’s resale value. To do that effectively you need to consider the cost and eventual sale of your fleet during the purchase stage, ownership stage and selling stage. This is critical to effective fleet management. Investing in the right vehicles, regular maintenance, damage repair and eventual reconditioning of your fleet of vehicles prior to sale will make them more desirable whenever there’s used cars for sale by owners. Fleet management requires you to make some very pragmatic decisions, like establishing your cycling policy based on vehicle mileage and usage. Your goal is to switch vehicles before they become too expensive to run, limiting their depreciation and maximizing their resale value.
When the time comes to sell your vehicles, whether direct or through auction, you want to ensure you have products that are in demand. That requires you to have some forward thinking at the time of purchase. Consider vehicle options for example: there was a time when blue tooth, back-up cameras, anti-lock brakes and even air conditioning were considered options. What were once optional features can quickly become industry standards, so it’s important to consider all your “options” when initially populating your vehicle fleet. Knowing the optimum time to remarket your vehicle based on mileage and age are also key to the effectiveness of your cycling policy. Used cars for sale by owner sell much quicker depending on how attractive your vehicles are to other buyers.
It seems like an obvious statement, but keeping your vehicles maintained over the ownership period is not only critical to keeping your drivers safe, but also your investment. Regular check-ups, new tires, and oil changes are great ways to counter the inevitable wear and tear and ongoing depreciation of your vehicles. It’s easier to cycle quality used cars than a fleet of beaters.
Your vehicle leasing partner can work with you on various strategies designed to help you sell for top dollar. Learn more. Visit Jim Peplinski Leasing at http://www.jimpeplinski.ca/.