Tag Archives: vehicle owners

Buying Fleet Vehicles – Everything You Need To Know

Groups of vehicles owned/leased by businesses, government agencies, or other organizations are referred to as fleet vehicles. Car rental companies, public utilities, taxicab companies, police departments, and public bus companies operate fleet vehicles.

Many businesses buy/lease fleet vehicles to deliver goods to customers or cater to the travel needs of sales representatives. Fleet vehicles are managed with the help of a fleet or transport manager through fleet management software.

Read Also: 8 Tips for Managing Fleet Vehicles

A fleet management system (FMS) is employed to connect the vehicles to a telematics system for efficient management.

Buying vs Leasing 

A variety of aspects should be taken into consideration to decide whether buying or leasing vehicles is more advantageous in your case.

Further, you find out whether you qualify for fleet leasing programs if you have a requirement for several cars/vans for salespeople or delivering products. It helps you to save a lot of money.

Know-your-vehicles-dy-t0-day-stories.

It has become easier these days to lease a small fleet of minivans, pickups, or cars. If you buy/lease more than 10 vehicles, you qualify as a commercial fleet buyer and you will be provided with a fleet registration number through the dealer.

This makes you eligible for all fleet incentive programs announced by manufacturers and dealers. Some dealers might offer programs designed by them for businesses. They may even obtain a fleet registration number for you even if you have leased less than ten cars.

In order to decide if fleet leasing is the right option for you, you must discuss with your accountant and work out the costs involved, taking into account the monthly lease payments; gas, oil, and maintenance expenses; annual insurance premium, and license fees involved.

Another aspect to be considered is whether you need to appoint a person to manage your fleet or not.

The costs and savings associated with giving an allowance to your employees and getting them to lease their vehicles should also be worked out before deciding to go ahead with fleet leasing.

One important aspect that you must clearly take note of is the penalties involved if you have to terminate a lease before the contract expiry date. This is crucial especially if you are likely to experience cash flow fluctuations every month.

Some of the possible pitfalls that you need to keep in mind prior to signing on the dotted line are as follows:

Insurance Coverage

Some dealers ask you to raise your insurance coverage. This is because they own the vehicles you leased from them. You should shop around a little bit before you decide on your fleet service provider because insurance can be quite high.

You should also find out if you can buy a blanket policy that covers both your fleet and business.

Overextending Your Hard-Earned Money

Seeing many new vehicles parked in your company’s parking area is definitely an ego booster. However, you need to decide as to how many vehicles you really need.

You must take care not to get carried away at the time of ordering a fleet. It is, therefore, highly recommended that you analyze your requirements before placing the order.

Neglecting to ascertain about mileage limits

The expenses involved vary radically and ranges anywhere from 15 cents to 20 cents per each mile driven over the prescribed limit.

So, if you cover, for instance, 50000 miles every year, buying a fleet may be a better option than leasing. Of course, you need to work out the details for your situation before going ahead with one of the options.

Failing to compare buying and leasing costs

Most dealers often have vehicles that they want to sell off as early as possible and they will offer special discounts and deals if you are ready to purchase rather than lease.

Read Also: What Are The Benefits of Fleet Management Software?

Discuss with the fleet manager in detail and work out the costs of buying and leasing in order to see as to which option makes more sense in your case. Always get the comparison in writing.

Spending too much

Never allow yourself to be talked into making a down payment that is higher than what is normal.

Typically, the down payment involves the instalment amount and license fees that are payable and a small deposit.

Forgetting state taxes

 Indeed states like Nevada and Texas do not levy any taxes, but some states, for example, California, levy high taxes and registration fees. You have to pay them upfront when you lease vehicles.

Avoiding paperwork

Irrespective of the size of a fleet, you are required to keep track of the mileage and expenses for each vehicle. This is essential to budget your cash flow.

Some Helpful Tips

1. Be clear about the different types of vehicles you need – minivans, pickups, and/or passenger cars

2. Be sure as to what purpose each of the vehicles will be used for

3. Pick the right vehicles and not those that are cheap; If you do not choose the right vehicle, your job will not get done; some of the questions you must answer for selecting the right vehicle are: 

  • What will you haul using the vehicles? 
  • How much space is required? 
  • What should be the payload (weight capacity) of the vehicle you need?
  • How would you organize the payload? Will you need special shelving, ladder racks, or toolboxes? Consider whether the pickups and vans need to be specially equipped
  • How many people would be present in the vehicle at any point in time including the driver?
  • If the vehicle has to pull a trailer, what should be its size and capacity?
  • Whether a four-wheel drive is required for your vehicles? Will the vehicle be driven off-road to justify the additional expenditure of using four-wheel drives?

4. Know clearly the features needed on each vehicle – radios and air conditioning may be required but it is better to avoid fancy features

5. How much cargo space is required for accommodating your product?

6. How many miles do you need to cover in a year? The limit set by most leases is 12,000 to 15,000 miles in a year

7. Leasing a fleet from one dealer is more economical and efficient

8. When visiting dealerships, always discuss with their fleet manager

9. In addition to shopping for vehicles, shop for a lender as well

There are several fleet financing companies out there that are ready to discuss incentive programs, your buying needs, and payment modifications. You can find them by asking your dealer for providing a line of credit.

Read Also: 7 Essential Skills To Become A Successful Fleet Manager

Or else, you can ask the dealer to recommend a leasing company they are already doing business with. Check with other lenders as well before finalizing anything.

You can also ask your bank if they have any fleet leasing programs. Alternatively, you can make use of a buying service for negotiating a deal and setting up financing arrangements.

8 Tips for Managing Fleet Vehicles

Whether in business organizations like a trucking company or in educational institutions or school districts, fleet managers have to supervise even complex fleet operations daily.

Managing a fleet of vehicle includes supervising, organizing, as well as recording all aspects of a company’s fleet.

Being a manager, you may have to set up regular vehicle maintenance schedules, look for cost saving trials, or even execute effective driver training plans.

The complexities in managing fleet operations force many companies to outsource their fleet management tasks to firms that provide services of experienced fleet managers.

Read Also: Top 5 Tips to Increase Efficiency of Your Fleet

Exceptional fleet management can provide diverse benefits such as better productivity, reduced fuel usage, increased business efficiency and even happy customers by supplying goods and services on time.

Here are 8 tips to make you an effective fleet manager

1. Key step – have a complete fleet management program

A well-executed fleet vehicle management plan can serve as a major contributor to any business’ bottom line.

Know-your-vehicles-dy-t0-day-stories.

Such a well planned program includes tracking, evaluating and optimizing every element of the fleet such as buying vehicles, monitoring the fleet, managing costs, appointing and training drivers, modifying safety set of rules, setting up Key Performance Indicators (KPIs), preparing the team for all operation situations and justifying associated risks.

2. Keep proper records of all data

Maintaining records are crucial for vehicle management. The manager is responsible to know all details such as what vehicle will be handled by which driver, during which time.

Make sure to have a log which will be signed by the drivers daily and this log should include details such as name of the driver, date, number of vehicles they drive and the time they started and returned.

Managers should also maintain physical and digital records of –

  • condition of the vehicle, which helps to know all the mechanical problems
  • the mileage before and after the shift and perform regular maintenance accordingly
  • tire conditions and pressure
  • detailed maintenance history  such as date of last oil change for all vehicles in the fleet
  • common routes that the vehicles are taken through and
  • alternate routes that can avoid heavy traffic patterns

With digital records, it is easy to find any report much faster than searching among a pile of papers.

3. Use advanced fleet management software

With a fleet management system, managers can track and maintain their fleet in a quick and accessible way.

Desktop as well as mobile based fleet management applications are now available to manage all types of transportation.

Such software helps to take complete control over almost every aspect of the fleet’s operations. Along with adhering to regulatory requirements, such apps can reduce the operational costs, improve fleet visibility and fuel management and increase profitability as well as driver satisfaction.

Companies are providing automation platforms for transportation that helps to convert your current fleet operating procedure to much easier ones that can boost engagement and create a better secure experience for all stake holders.

With this type of software, managers can also benefit from features such as real-time alerts, route optimization plans, planning for deliveries on-time and more. Choose the one that can integrate into your systems flawlessly.

Auto fleet management also helps to allocate the task to agents one by one based on the nearest location or it will be assigned on the first come first serve basis. There are also options to serve batch wise.

4. Hire qualified drivers

While hiring fleet employees, you should consider several factors. Accredited medical cards should be obtained to certify that the applicant is medically fit for driving commercial vehicles.

The driver must have –

  • a valid  driving  license with  appropriate class requirements
  • the physical as well as mental potential to operate vehicles in a safe manner
  • Department of Transportation’s (DOT) medical card
  • a commercial  driving license (CDL) to operate truck vehicles
  • experience in the field and a history of steady employment
  • passed a certified pre-employment drug and alcohol screening
  • a better driving record

Experience required for a driver may differ for different businesses. If they are not that experienced, consider the period of time in which they had their license.

Read Also: What Are The Benefits of Fleet Management Software?

Also ask for references from previous employers, which help to learn about the candidate’s skill level, behavior on the job and capability in the field.

5. Offer additional training for drivers

Even if the drivers joining your team has sufficient experience and training, providing additional training with instructions to drive on different types of roads, hazards of unfocused and weak driving and first aid training will help.

You should also arrange superior screening policies for all drivers and train them with safe-driving policies to lower traffic incident risks of fleet vehicles.

With successful safety training programs, organizations can decrease accident rates, reduce vehicle repair costs and lessen legal issues.

Make sure to provide your drivers with guidelines regarding the importance of wearing seat belts, and advise them on what need to be done in case of a vehicle breakdown, road incident or crash.

Also implement fleet-wide safety rules and make it mandatory for every staff to follow them. Make them aware of the consequences that may occur due to distracted driving and use of mobile devices during driving.

Also make them sign this document of safety rules to ensure their understanding of these policies.

Regular training programs also help drivers to be up to date with the transportation industry trends and any change in company rules or standards.

Less experienced staff must also be provided with on-road and off-road real-time training with the support of experienced staff.

6. Take care of vehicles too

While training and caring for your staff, remember your fleet vehicle also needs care. Consider having vehicle-specific safety policies in place to protect vehicles from any damage or accidents.

Developing wide maintenance and assessment schedules for each fleet vehicle help businesses to manage risks related to fleet operations, guarantee safety, and reduce spending on repairs can help.

Also remember to regularly update and document these guidelines. Maintenance program for your fleet can be preventive, routine or even emergency one.

While preventive maintenance focuses on maintaining the overall condition of the vehicle, routine maintenance occurs on a regular basis for every type of vehicle.

At the same time, emergency maintenance is unplanned. With an excellent preventive and routine maintenance policy, your firm can avoid any major emergency maintenance problems that may occur.

7. Use GPS software to track your fleet

Sophisticated fleet tracking systems which use global positioning systems (GPS) are now widely available to track the exact location of any vehicle. Installing GPS tracker for trucks and other vehicles helps with the better management of fleets in a much lower operating cost.

By tracking your trucks and drivers real time, drivers need not have to call you to update the location or tasks done. You can also correct them in case of they are passing through a wrong route. Managers can check the driving patterns and if vehicle is missing or someone has stolen it, location can be noticed.

8. Have an idea about fleet insurance policies

With the right fleet insurance policy, all vehicles can be covered. Make sure to find the right coverage at the most affordable price for your specific fleet.

Discussing with experienced hands in the industry helps to understand your insurance needs and the insurance providers in the industry space.

There will be changes and updates to most insurance policies each year. Consider an annual review to assess whether your current policy is meeting the company’s changing insurance needs.

These reviews can also help managers to evaluate claims and recognize ideal steps to minimize insurance costs in the future.

You must have a clear idea about the changes that may occur in your insurance policy if you add more vehicles or drivers to your fleet.

Read Also: 7 Essential Skills To Become A Successful Fleet Manager

Also check whether your insurer offer any discounts, if you implement fleet management software, or provide better security measures or arrange any focused training programs.

With this knowledge, you can consider adding these features to your fleet and thus take benefit from the discounts offered.

Let us know if these tips help you manage your fleets better.

Upto Dh3000 Fine Awaiting Unclean Vehicles In UAE!

The gleaming city roads of Dubai are zero-tolerant to anything that fades its aesthetics serenity anywhere across the streets.

Read Also: Top 10 Luxury Car Rental Companies In Dubai 

Seemingly, as a move to make it a speckles adorable city, Dubai municipality has start warning residents to clean their vehicles.

Know-your-vehicles-dy-t0-day-stories.

By issuing such a rule, Dubai governments giving out an advice to the vehicle owners to take care of their vehicles.

unclean-vehicles in dubai

This law not only meant to keep the city clean from dusty vehicles but also to avoid unnecessary heaping of abandoned vehicles on the streets.

Any vehicle that is found abandoned and dirty for a pretty long period over the public parking spaces will be noticed to wash it.

Read Also: Driving Rules in UAE – All You Need To Know 

If the vehicle owners fail to adhere to the municipality rules within 15 days from the issue of notice, for keeping an untidy vehicle in a public space the vehicle can cost Dh500 as fine.

unclean-vehicles-in-dubai

The charges involving in the violation is not limited to just a fine. The vehicles would be towed away and impounded by the law and enforcements forces. 

In addition, the towing charge, parking rent and other expenses will be incurred from the violators. Vehicles which are never settling the penalty charges will be auctioned by the concerned department.

Precautions

To prevent ourselves from being victimized for such a hefty fine is making sure our vehicles are quite clean at least outwardly.

Further, if you are going for a long trip, don’t just leave your car at public parking spaces instead find some confined space as if garages, friend’s house, private car parking lots.

unclean-vehicles-dubai

Read Also: Desert Driving – Complete Guide

Washing your vehicle once in a week may help to prevent unnecessary fines. Especially, over the sandy and windy climate of UAE the probability of getting exposed to dust winds are common. Thus, a few days are enough to make our vehicle seems quite unkempt.