FLEET MANAGEMENT
we are looking for in the business purchase
is the vehicle that meets all the transport
requirements at the lowest ownership cost
across the whole ownership period. For
example, it is depreciation that is the problem;
the difference between what you pay (purchase
price) for the vehicle and what you get at
vehicle disposal (residual value). A higher
specification will most likely provide a higher
residual value it is the difference between the
two that is important.
• Soft issues, such as any value judgements that
the organisation might place on any aspect
of the selection process. The importance of
any of these aspects may change over time
depending on the service requirement or the
service application of the vehicle.
Collecting the right data
This is a function of the cost of acquiring the
vehicle minus the amount recovered at vehicle
disposal (residual value).
The problem, as always, is determining which
data elements are relevant. Concentrate on
those data elements that can reasonably be
expected to affect the outcome of your analysis.
The following points should be considered:• Ownership cost. The cost of acquisition
minus the residual value;
• Fixed costs. Costs incurred for having the
vehicle regardless of what distance it travels;
• Operating costs. Those costs incurred in
running the vehicle day to day;
• Vehicle replacement analysis. Performance
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