Some of the myths that revolve around fleet management are misleading especially if people do not get the right information soon. As a fleet manager or owner, it is essential to know where you stand as far as this is concerned. According to the head technician of Fleet MDVR at a reputable company, it is crucial to understand these misconceptions and the impact they can have when one believes in them. This article seeks to enlighten people on some of the myths and what they mean to the fleet industry.
Reconditioning a Vehicle Will Depreciate Its Value
It is a false belief that doing a makeover on a vehicle will reduce its value. This may be true in some cases where the car has received a total makeover. However, experienced vehicle assessors claim that minor makeovers can add value to a vehicle. So, fleet managers should not avoid reconditioning vehicles that need minor repairs with the claim that this will depreciate their value.
Drivers Don’t Care About Fleet Costs Since It Is Not Their Money
Most fleet managers have a belief that the drivers are not concerned with the costs that the fleet firm incurs. While it may be true in some cases, most trained and motivated drivers make sure that they save on costs when possible. They believe that when the company is doing well, they have a lot to benefit from. Instead of focusing on this as a worry, managers can take their time and involve all the staff in cost-related matters. When they feel part of the team, they will be cautious about the costs.
The 2% Per Month Amortization Applies
Most of the managers still believe in this straightforward figure of amortization. It may seem an easy task to apply it, but it will not work somewhere along the way. Vehicles are not exposed to the same environment, driving habits and even services across all fleet management firms. Therefore, even if the initial value was the same at the beginning, they will not change at the same rate. Managers should assess each case differently using available parameters and know the actual amortization rates. Reductions of capitalized costs can also help to determine the actual market cost.
Fleet Management Is a Part-Time Job
There is still a belief that fleet management can be done in free time. On the contrary, this is a demanding job that requires the fleet managers to go beyond the recommended working hours each day. They have to answer questions and coordinate the vehicles even at night especially if the vehicles were late to arrive at their destinations. Furthermore, keeping tabs on the whole fleet requires them to have their tablets or smartphones with them at all times. Due to all these demands, it cannot be done as a part-time job.
Fleet Management Is a Business for Car Enthusiasts
Most people think that fleet managers are vehicle enthusiasts or seasoned mechanics. This is a misconception and can mislead many. Any person can be trained through the right channels to be a great fleet manager. Even those who are not die-hard fans of cars can still run the company well and make all the customers happy.
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