Market Trends


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Return of 'Normal' Used-Vehicle Market Demands Seasonal Remarketing Strategy

December 31, 2013

For the past three years, everyone has been a remarketing genius. The low inventory of used vehicles in the wholesale market helped inflate resale values by about 10 percent. However, as greater volumes of used vehicles begin to enter the wholesale market, vehicle supply will start to meet buyer demand, which will put downward pressure on resale values. In many ways, the new used-vehicle market will demand returning to the basics, namely recognizing the seasonality of the used-vehicle market.

Tags: Depreciation, Market Trends, Used-Vehicle Prices

Author: Mike Antich | Posted @ Tuesday, December 31, 2013 12:00 AM | » Comments(1)

What Percentage of Your Budgeted Fleet Dollars are Wasted?

January 17, 2013

How much of a fleet’s annual budgeted dollars are wasted? Is it 5 percent, 10 percent, or even more? In my mind, eliminating waste is the proverbial low-hanging fruit. Before implementing new fleet initiatives requiring new dollars, let’s make our No. 1 priority to stop the waste of existing dollars. Let's examine the fleet-related areas that are rife with waste and discuss the protocols you need to minimize it.

Tags: Depreciation, Idling, Driver Training, Fuel Management, Tires

Author: Mike Antich | Posted @ Thursday, January 17, 2013 12:00 AM | » Comments(3)

Will Fuel Overtake Depreciation to Become the No.1 Fleet Expense?

March 20, 2012

The recent breathtaking increase in gasoline and diesel prices gives us a reality check as to how quickly fuel can dramatically increase fleet operating expenses. With fuel prices at a near all-time high and ongoing strong resale values decreasing depreciation costs, will fuel costs overtake depreciation as the No. 1 fleet expense in 2012, as it almost did in 2006?

Tags: Depreciation, Gasoline Prices, fuel cost, Market Trends

Author: Mike Antich | Posted @ Tuesday, March 20, 2012 12:00 AM | » Comments(2)

First-Year Bonus Depreciation Increased to 100 Percent

December 28, 2010

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853) was signed into law by President Obama on Dec. 17, 2010. The legislation includes an extension of the Small Business Jobs and Credit Act of 2010's "bonus depreciation" allowance through the end of 2011, and increases that amount from 50 percent to100 percent. Here's what it means to fleets.

Tags: Depreciation, Legislation, taxes

Author: Mike Antich | Posted @ Tuesday, December 28, 2010 10:19 AM | » Comments(0)

The Need to Extend 50-Percent Bonus Depreciation

August 13, 2010

First-year 50-percent depreciation, known as bonus depreciation, expired Jan. 1, 2010. An amendment to retroactively extend bonus depreciation through the end of calendar-year 2010 has been added as an amendment to H.R. 5297. Bonus depreciation has been benefical to commercial fleets, especially those with long-life assets. As an industry, we need to urge members of Congress to pass H.R. 5297. But this is easier said than done due to the many other contentious issues in the bill.

Tags: Depreciation, Legislation

Author: Mike Antich | Posted @ Friday, August 13, 2010 3:23 PM | » Comments(0)

Fleet Predictions for the 2010 Calendar-Year

January 4, 2010

Barring the occurrence of unforeseen calamities beyond our control, here are my predictions as to how current fleet industry trend lines will play out in the next 12 months.

Tags: Depreciation, Maintenance, Replacement Tires

Author: Mike Antich | Posted @ Monday, January 4, 2010 9:29 AM | » Comments(3)

Predictions for Fleet in 2009

January 6, 2009

When looking ahead to the next 12 months, I foresee reduced operating costs for fleets offset by increased depreciation expense caused by anemic resale values and decreased incentive monies. Here’s why I believe this will be the case, along with other predictions for 2009.

Tags: Operating Costs, Depreciation, Resale Value, Forecast

Author: Mike Antich | Posted @ Tuesday, January 6, 2009 10:45 AM | » Comments(4)

Analyzing Depreciation Trends: 2007 vs. 2006

November 20, 2007

Depreciation continues to be the largest fleet expense; however, fuel, as a percent of total fleet cost is growing (rapidly). Fuel expense is influencing vehicle acquisition strategies, with a direct bearing on future depreciation.

Tags: Depreciation, months-in-service, Replacement Cycles

Author: Mike Antich | Posted @ Tuesday, November 20, 2007 10:42 AM | » Comments(0)



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