What Are Fleet Cars?
Each day on roads and highways we see many cars that have the graphics and names of corporations on them. When a corporation or business has multiple versions of the same car they are referred to as "fleet" vehicles. While many do have graphics, other fleet vehicles travel the roads with no visible markings. Fleet vehicles are also referred to as "company cars."
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Definition
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Fleet cars are composed of at least two or more vehicles owned outright or leased by a corporation, business or government entity used to transport employees on work assignments. There are instances when a company allows an employee to use a car for work and personal business.
Fleets cars are utilized by entities that employ a sales force, municipalities and government agencies, not for profits, utilities and delivery companies.
Manufacturers
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Due to the sheer volume of cars that can be sold at one time, most automotive manufactures and dealerships vie for fleet business. Although a fleet can consist of as little as two cars, most dealers consider a truly commercial fleet to be 10 cars or more. Manufacturers usually assign a fleet registration number to companies that purchase 10 or more vehicles. The number gives buyers the opportunity to buy or lease at substantial discounts.
All three U.S. automakers maintain active fleet sale components. Automotive manufacturers, though, are becoming more aware of the pitfalls of fleet leasing or sales as the residual book value of these vehicles are low and affect overall consumer impressions of the make and model.
A business must decide on a number of factors such as yearly mileage and heavy wear and tear to make the decision of whether to lease or buy their cars outright.
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Fleet Management
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An entity that has multiple cars in its fleet must have the logistics in place to manage a large number of vehicles. Some businesses outsource their fleet service and management to third parties but most maintain their own fleets.
Fleet managers are responsible for daily operation of company cars, safety and operating guidelines, driver training, maintenance and repairs of vehicles, and purchasing and leasing.
Businesses must also constantly monitor insurance and gas costs to keep their fleets on budget.
Trends
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A current trend many companies are now employing is to have a "green" fleet of vehicles. Companies go green to save money on fuel, help the environment or be considered "good corporate citizens."
Green fleets are composed of hybrids, electric, clean burning diesel, natural gas or experimental hydrogen powered cars.
Fleet Sales to Private Buyers
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When a vehicle is removed from a fleet it is usually resold to a wholesaler, auction house or private consumer. Although these cars are only a few years old, and many good deals exist, caution must be made in a purchase.
Fleet vehicles generally have high mileage and excessive wear when they come off lease or are resold. It is important to get a car maintenance report and inspection by a reliable mechanic before purchasing one of these cars. Many fleet car auctions are held but do not give private buyers the opportunity to do extensive research on the vehicles they are offering for sale.
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