Automotive Fleet
MenuMENU
SearchSEARCH

Ed Bobit: A Change of View ... Lessors Are "Nice Guys" Again

The NAFA Foundation administered a benchmarking study on lessor services.

Ed Bobit
Ed BobitFormer Editor & Publisher
June 1, 2003
4 min to read


The man who sees both sides of a question is a man who see absolutely nothing.-Oscak Wilde.

Man is today a challenged animal. He has to respond, he has to respond successfully to the challenge, or he will be overwhelmed - like any other insufficiently adaptable animal.-H.G. Wells

Ad Loading...

You can't hold a man down without staying down with him.-Booker T. Washington

Few men have virtue to withstand the highest bidder.-George Washington


My usual MO is to take some reading home almost every night. My choice a couple of weeks ago was the March issue of NAFA's Fleer Executive. It contained a major report on benchmarking lessor services.

The NAFA Foundation administered the project that was sponsored by live of the major fleet management companies. Those who picked up the tab were ARI, Citi-Capital, Donlen, GE, and Lease Plan.

While neither you nor I will ever see the results or volunteered commentary that properly is proprietary to those who paid the bill, I was particularly interested in the results of the 282 responses from commercial fleet managers in U.S. and Canada.

Ad Loading...

Before we get serious about studying the results, you might have an interest in some reflections from a guy who's been around longer than most who recalls a different scenario within the industry.

We don't have to go back 40 years ago when there were a couple of dozen national and strong regional lessors fighting for business in a little more than a conceptual stage. They also had much different names like Geleo, McCullagh. US Fleet Leasing, Nations-Banc, Dresser. Heitz, and many more. Not unlike other markets in a booming era, they all became victims of buy-outs.

An odd thing happened in 1982 when Gelco (the forerunner to today's GE Fleet Services) installed my long-time friend, Pierce Walsh, as their on-site employee/fleet manager at IC Industries in Chicago. Admittedly an experiment, many people were surprised that it worked; for the account as well as the lessor.

You might say that that event was the embryo of "Total Fleet Management" as a concept. In 1985 it expanded with Avon and Mallinckrodt Chemical. PHH signed Eastman Kodak to the plan in 1986 and the race was on. Obviously, the lessors were enthusiastic and the fleet managers were not.

The ensuing foray between account and service provider crystallized in 1989 when a bold young lady fleet manager named Susan Richard sent a letter which was published by NAFA's Fleet Executive. A lessor had sold Greyhound Corporation (in Phoenix and later known as Dial) on the concept. Richard took umbrage when her management advised her that her three-person department was now down to one, and she was out of a job.

Ad Loading...

This was a tragic slice of life for the future of account fleet professionalism seen as not supportive of the future and with loss of responsibilities and eroding stature within their companies.

The furor reached a peak of sorts at NAFA's annual meeting in Houston and the agenda was highlighted with a no-holds barred open session of "The Future Role of Fleet Management." I happen to remember it well. A standing room only crowd overflowing a very large room. Panelists included fleet managers, fleet lessors, and even me. The dialogue was heated and emotional.

That was the turning point. It didn't happen overnight. Eventually the fleet managers realized that it was a losing battle when the economics for some companies simply compelled management to outsource.

Now, back to the survey. It's not surprising that the lessors (sorry, it's an old habit; I know they're fleet management companies) did well on the study. Oh, one could conclude that they could focus on License & Title Services and the old bugaboo, "Billing."

And, yes, there was one area where the grades were consistently low. Care to guess? "Remarketing" remains the lowest grading point across the board. With most being open-end leases and the depreciation costs borne directly by the account, is it any wonder why the pressure is on here? Maybe they are reading my editorials.



Subscribe to Our Newsletter

More Operations

A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.

Read More →
OperationsApril 30, 2026

Factory Installed vs. Aftermarket: Choosing the Right Telematics Path & Managing the Data

As fleets rethink how they capture, manage, and act on vehicle data, telematics is at a major inflection point. In this episode of the Fleet Forward Podcast, we dive deep into one of the most pressing questions facing fleet leaders today: Should you rely on OEM factory-installed connectivity, aftermarket devices, or a hybrid of both?

Read More →
Ad Loading...
OperationsApril 30, 2026

What Real-Time Data Reveals About EV Cost, Performance, and Scalability

Experts from telematics analytics, fleet-as-a-service operations, and national EV benchmarking share how real-time data is reshaping fleet strategy—dispelling assumptions, validating best practices, and exposing costly missteps.

Read More →
OperationsApril 30, 2026

Planning Through Policy Shifts: What Fleets Must Track in 2026

A powerhouse panel featuring experts from the American Automotive Leasing Association, CalSTART, and municipal fleet leadership dives into the realities of navigating shifting emissions rules, regulatory waivers, federal agency actions, the future of the EPA’s endangerment finding, and the push for unified standards. They also examine the impacts of tariffs, autonomous vehicle policy, battery innovation, and the accelerating global EV market.

Read More →
OperationsApril 30, 2026

Managing Market Turbulence with Strategic Fleet Insights

This episode kicks off with a deep dive into the technologies and market forces reshaping today’s fleet landscape. Host Chris Brown is joined by Laolu Adeola (Leke Services), Tyson Jomini (J.D. Power), and Richard Hall (ZappiRide) to break down real-world data, shifting incentives, and practical strategies fleet leaders can use right now.

Read More →
Ad Loading...
Clipboards with flooded cars in background.
Disaster Responseby Chris BrownApril 30, 2026

Adapting Fleet Policy When Disasters Strike

In the middle of natural disasters fleet managers must shift priorities to protect people and assets. What policy items should be loosened, and when should the line be held?

Read More →
OperationsApril 24, 2026

EV Reality Check: How Fleets Are Managing Policy Shifts, Safety, and Scaling Challenges

In this episode, fleet leaders from municipal, university, and private-sector organizations share a candid EV reality check. From infrastructure setbacks and policy whiplash to grant funding, total cost of ownership, and charging resiliency, this conversation dives into what it actually takes to scale electrification in the real world.

Read More →
2019 Automotive Fleet Hall of Fame inductees Joe LaRosa Bob Miesen Bud Morrison Theresa Ragozine portraits
Operationsby StaffApril 21, 2026

Fleet Hall of Fame Honorees Through the Years

A running list of the fleet industry’s most influential leaders, recognized for their lasting impact on commercial fleet management.

Read More →
Ad Loading...
Operationsby Chris BrownApril 20, 2026

2026 Salary Survey: Six-Figure Fleet Manager Salaries Become the Norm

After a decade of lagging compensation, fleet manager pay is climbing. But expanding responsibilities, larger fleets, and growing complexity continue to redefine the role.

Read More →