Market Trends

Public Sector Fleet Operations on the Radar Screen of Politicians

The rapid rise in gasoline and diesel prices precipitated unanticipated fleet budget deficits throughout the country in 2005. This caused fleet to get on the “radar screen” of elected officials, the local news media, and taxpayer watchdog groups. As fleet managers asked legislators for additional funding, a knee-jerk “politicization” of fleet operations occurred with some elected politicians seeking to modify fleet policies. READ MORE

Author: Mike Antich | Posted @ Monday, February 27, 2006 3:34 PM | » Comments(0)

Are You a Tactical or Strategic Fleet Manager?

The common denominator among the companies operating the nation’s 300 largest commercial fleets is that they empower their fleet managers to make strategic decisions necessary to cost-effectively operate their fleets. READ MORE

Author: Mike Antich | Posted @ Tuesday, February 21, 2006 1:04 PM | » Comments(-6)

Public Sector Fleets:Why Fleet Resale Proceeds Should Not be Returned to the General Fund

A fleet with a vehicle replacement fund to which resale proceeds are returned makes the fleet manager more accountable for the disposal of surplus vehicles and equipment. It is in the fleet manager’s best interest to maximize resale proceeds to offset the cost of new vehicles. READ MORE

Author: MIke Antich | Posted @ Tuesday, February 7, 2006 10:33 AM | » Comments(0)

Think You Run a Well-Managed Fleet? Show Me the Metrics

Strategic sourcing has been a strong trend in corporate procurement for more than a decade. It has changed the corporate landscape and many fleet managers today find themselves reporting into the company’s procurement/sourcing group. READ MORE

Author: Mike Antich | Posted @ Tuesday, January 31, 2006 8:12 AM | » Comments(0)

The Time is Now to Create a Certified Automotive Remarketing Program

The International Automotive Remarketers Alliance (IARA) has launched an important industry initiative to develop the first-ever certification program for remarketers. Known as the Certified Automotive Remarketing program (CAR), it will be open to all members of IARA, along with nonmembers who meet the eligibility criteria. Currently, no such program exists for the remarketing industry. However, this is not the case in other industries. READ MORE

Author: Mike Antich | Posted @ Tuesday, January 24, 2006 8:34 AM | » Comments(0)

Higher Fuel Prices Prompt Increase in Truck Overloading

Higher fuel costs have created budgetary pressures to minimize operating expense, prompting some companies to make the most of every trip by overloading trucks. READ MORE

Author: Mike Antich | Posted @ Tuesday, January 17, 2006 9:11 AM | » Comments(0)

How Should Fleet Resale Performance be Measured?

A variety of resale guides are available for commercial fleet managers to use in benchmarking vehicle resale values and measuring the performance of their remarketing vendor. Recently, the advent of online resale guides is prompting some fleet managers to actively consider the use of other industry benchmarks. READ MORE

Author: Mike Antich | Posted @ Tuesday, January 10, 2006 11:29 AM | » Comments(-4)

Use of a Company-Owned Vehicle May Override the ‘Coming and Going’ Rule in Workers’ Comp Claims

Most state workers’ compensation systems do not provide benefits for injuries sustained while an employee is commuting to and from work. This is commonly referred to as the “coming and going” rule. Under ordinary circumstances, any injury that an employee may suffer while traveling to and from work would not be covered by workers’ compensation. READ MORE

Author: Mike Antich | Posted @ Wednesday, December 28, 2005 2:27 PM | » Comments(0)

Driving and Prescription Drugs Can be a Lethal RX

As fleet manager, any time one of your drivers uses an over-the-counter or prescribed medication, you must consider the risk and the effect it might have on their ability to drive. READ MORE

Author: Mike Antich | Posted @ Tuesday, December 20, 2005 2:21 PM | » Comments(0)

Saving Gas Can Be as Simple as Properly Inflating Tires

The easiest way to minimize fuel expenditure is to ensure that tires are inflated to the correct pressure. Statistics compiled by the American Automobile Association (AAA), show that fuel economy is compromised by 10 percent when tires are under-inflated by only 2 psi (pounds per square inch.) An under inflated tire increases rolling resistance, requiring your engine to work harder. Proper tire inflation could save several hundred dollars annually at the gas pumps. READ MORE

Author: Mike Antich | Posted @ Tuesday, December 13, 2005 12:01 PM | » Comments(0)

You May Be Violating State Law By Deducting Driver Wages to Pay for Vehicle Damage

Many nationally dispersed fleets include a provision in their fleet policy guidelines stating that drivers are financially liable for damage to their company-provided vehicle if it was caused by negligence. However, many fleet managers are unaware that this practice is illegal in some states. READ MORE

Author: Mike Antich | Posted @ Tuesday, December 6, 2005 8:10 AM | » Comments(0)

Fleet Cost Control Starts with the Company Driver

The best time to control cost is before it occurs, and the way to do this is by establishing policies and procedures that inhibit unnecessary spending. However, just because your company implements a written fleet policy doesn’t mean it is being followed. How do you increase driver compliance with fleet policy? READ MORE

Author: Mike Antich | Posted @ Tuesday, November 29, 2005 12:22 PM | » Comments(0)

Designing Tires to a Specific Model Has Consequences for Commercial Fleets

Tires are an evolving component on vehicles. One simply has to look at the trend with factory OEM wheels and tires. Only a few years ago, the norm was 15- and 16-inch wheels. Currently, these same-sized cars, are now equipped with 16- and 17-inch sizes and some even have 18-inchers for mid-size cars. READ MORE

Author: Mike Antich | Posted @ Tuesday, November 8, 2005 12:21 PM | » Comments(0)

The Impact of Hurricane Katrina on the Wholesale Used-Vehicle Market

An estimated 250,000 to 1.2 million vehicles were damaged or destroyed by Hurricane Katrina. There were approximately 20,000 commercial fleet vehicles in the Gulf Coast at the time of the Hurricane with as many as 2,000 units destroyed or damaged. READ MORE

Author: Mike Antich | Posted @ Tuesday, October 4, 2005 8:24 AM | » Comments(0)

Fleet’s Finest Hour

Estimates vary as to the number of private and commercial vehicles destroyed or damaged by Hurricane Katrina, from a low of 250,000 vehicles to as many as 1.2 million. READ MORE

Author: Mike Antich | Posted @ Tuesday, September 27, 2005 9:17 AM | » Comments(0)

Fleet Policy is the DNA of Your Fleet

For the past several years, I have read with fascination about the human genome project, which seeks to decipher the DNA instructions that, along with environment, help to determine who we are as individuals. In the same vein, I believe that each fleet also has a DNA of sorts, which is comprised of the procedures and regulations that are codified in its corporate fleet policy. READ MORE

Author: Mike Antich | Posted @ Tuesday, September 13, 2005 2:25 PM | » Comments(2)

The Emergence of e-Plates to Track Fleet Assets

I enjoy following the fleet management industry in the UK since it is among the most sophisticated in the world. Innovative trends often first appear in the UK, which makes for interesting conjecture as to whether they may be a prelude to what might emerge in the U.S. fleet market. One recent development was a controversial decision to test radio frequency identification (RFID) chips embedded in the license plates of vehicles. The UK Ministry of Transport gave the official go-ahead in August READ MORE

Author: Mike Antich | Posted @ Tuesday, September 6, 2005 1:07 PM | » Comments(0)

Using Targeted Production Weeks to Maximize Resale Values

The majority of fleet managers place new-vehicle orders with the expectation that these units will be built and shipped based on normal lead-times. However, a growing number of fleets, especially larger fleets, are using targeted production weeks (TPW) as a fleet planning tool when placing new-vehicle orders. READ MORE

Author: Mike Antich | Posted @ Tuesday, August 23, 2005 12:02 PM | » Comments(0)

The Right Pricing Strategy is the Key to a Successful Employee Sales Program

There is a renewed emphasis on maximizing remarketing dollars following the dramatic declines in resale values that have been occurring over the past three years. Although purchasing and negotiating skills are crucial, the skill that continues to set apart exceptional fleet managers is their remarketing expertise. One remarketing channel receiving increased attention is internal remarketing or the sale of company vehicles to employees. READ MORE

Author: Mike Antich | Posted @ Tuesday, August 16, 2005 3:34 PM | » Comments(0)

Governors Fear DMV Costs Will Increase With Implementation of Real ID Act of 2005

The recently enacted Real ID Act requires states to verify that applicants for a driver’s license or renewal are who they say they are. Unless state-issued driver’s licenses meet these new federal standards by 2008, the federal government will not accept them as identification to board a plane, train, or other venue in which the federal government requires the presentation of a photo ID. READ MORE

Author: Mike Antich | Posted @ Friday, July 22, 2005 8:16 AM | » Comments(0)

The Tax Consequences of Driver Reimbursement

When a company adopts a driver reimbursement program, it shifts all costs to the employee. The problem, from a tax view-point, is that if not handled correctly, reimbursement payments to employees can be considered taxable income by the federal government and some states. For instance, a monthly vehicle allowance is taxable to the employee, and the company is subject to its portion of FICA tax. The net result is that the employee’s combined state and federal tax burden will increase, which, in t READ MORE

Author: Mike Antich | Posted @ Tuesday, July 12, 2005 10:50 AM | » Comments(0)

Public Sector Fleet ManagementVehicle Overloading Is Expensive & Dangerous

In public sector fleet operations, the number-one cause of overloading is when a vehicle is not used for the spec’ed application. In other situations, overloading is intentional, as is sometimes the case with garbage trucks. In these instances, drivers overload vehicles to minimize the number of runs needed to offload the collected garbage. Overloading also occurs due to operator ignorance. For example, as parks and rec-reation truck may be spec’ed to haul a certain volume of grass cuttings, but READ MORE

Author: Mike Antich | Posted @ Tuesday, June 21, 2005 12:17 PM | » Comments(0)

Are FAVR Reimbursement Programs Non-Compliant with Sarbanes-Oxley?

There are three types of payment plans utilized to reimburse employees who drive their personal vehicles for business use. They are fixed payments (a monthly allowance), variable payment (cents per mile), and fixed and variable reimbursement (FAVR). READ MORE

Author: Mike Antich | Posted @ Monday, June 6, 2005 9:17 AM | » Comments(0)

Electronic Titles are Revolutionizing Fleet Vehicle Title Processing

An electronic lien and title system, or ELT, is the technology that allows vehicle titles and lien information to be transmitted electronically, much like e-mail, to and from state motor vehicle agencies and lien holders, such as fleet management companies. An ELT is also known as a “paperless title” or e-Title. Ultimately, ELT products and services will make traditional vehicle title processing obsolete, since electronic vehicle titles can be stored, transmitted, maintained, and corrected elect READ MORE

Author: Mike Antich | Posted @ Tuesday, May 31, 2005 1:41 PM | » Comments(0)

Why the High Cost of Fuel Will Have Minimal Impact on 2006 Fleet Selectors

Fuel is fleet’s second highest cost, and the dramatic run-up in fuel prices has negatively impacted all fleet operations. Although the high cost of fuel has wreaked havoc on fleet budgets and has caught the attention of senior management, it will have minimal impact on vehicle selection for 2006-model fleet selectors. Why? Most fleet managers say that fuel is only one part of the overall lifecycle cost analysis. Although fuel is their second highest expense, depreciation remains the number-one c READ MORE

Author: Mike Antich | Posted @ Tuesday, May 24, 2005 12:39 PM | » Comments(0)

Author Bio

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Mike Antich

Editor and Associate Publisher

Mike has covered fleet management and remarketing for more than 20 years and entered the Fleet Hall of Fame in 2010.


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