Allen's FotoPage

By: Allen Martin

[Recommend this Fotopage] | [Share this Fotopage]
Monday, 23-Jul-2012 00:45 Email | Share | | Bookmark
Fleet Cars

What is meant by fleet cars?

Fleet vehicles refer to vehicles which are totally owned or taken on lease by private or government agencies but not by individuals.

Fleet cars are popularly used all over the world. Fleet car companies buy a number of cars of basic model usually at reasonably low prices directly from the car manufacturer. These fleet cars are operated for a certain period for various purposes like:

Private agencies:

•Transportation of employees of multinational companies
•Transportation of guests of hotels
•Travel of senior officials
•Travel of sales representatives to client place

Government agencies:

•For police departments
•For taxicab services
•For public utility services

Fleet cars after being used over a period of time, they are sold to third parties as used fleet cars. As such fleet cars have the significant benefit of being maintained regularly but also suffer from a serious drawback of high mileage.

Fleet cars may be bought or leased depending on what is more advantageous to the business which is dependent on a number of factors. Any business which buys 10 or more fleet cars becomes a commercial fleet car buyer and is given a fleet registration number. A holder of fleet registration number is entitled to avail a number of incentives from the car dealers’ and manufacturers’.

Here are a few considerations you should look into before you lease fleet cars:

Is it really worth the buck?

Having a bee line of vehicles for company use of course is a boost to the company’s reputation, but is it really necessary and worth the buck you paid for it? Always analyze the needs of the company and align it with the allocated budgets and only then consider leasing the fleet vehicles.

Comparison of lease price against buying price:

You may sometimes come across massive discounts on purchase of fleet cars especially if the dealers just want to get rid of them. Don’t get tricked into buying them instead of leasing before making a neat comparison between the two prices. Consider the buying option only if it works out to be a profitable option in the long run.

Get it in writing:

If you’re considering leasing fleet cars always get all the terms and conditions in writing. Details such as the down payment amount, penalties for early termination of lease contract, conditions for extending the lease contract, etc. should be discussed and affixed in writing.

Check on mileage limits:

Always make sure to clearly discuss the mileage limit for the cars to be used. This is significant as it can drastically vary the cost for every mile driven beyond the permitted limit. For instance if one crosses 50,000 miles in a year it is better to have bought the fleet car instead of hiring them on lease basis.

Consider the insurance cost:

Most fleet car dealers demand a high insurance coverage for the leased cars. So it’s advisable that one looks around for insurance policies, make a comparative study and then take a suitable policy. These days blanket policies are becoming popular which cover the business as well as the fleet vehicles together.

For More Information Visit:


© Pidgin Technologies Ltd. 2016