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Market Trends•by Mike Antich•May 23, 2008

Pros & Cons of TPMS for Class 3-8 Truck Tires

The U.S. Department of Transportation is expected to release its revised medium-truck tire standard (FMVSS No. 119) during the second half of the year. However, it is anticipated that it won’t contain a provision calling for the use of a Tire Pressure Monitoring System (TPMS) for Class 3-8 commercial trucks. TPMS is an electronic system that monitors the air pressure inside pneumatic tires. Should TPMS be mandated for commercial trucks over 10,000 lbs.? Here are three reasons supporting this.

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Market Trends•by Mike Antich•May 19, 2008

High Fuel Costs Take Fleet into Uncharted Water

After 8,000 hours of research, more than 11,000 facts pertinent to the fleet industry have been collected for this year’s Automotive Fleet Fact Book. Within this wealth of data, one overriding fact stands out with klieg-light intensity – the impact of the high cost of fuel.

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Market Trends•by Mike Antich•May 2, 2008

Avoid the Complacency of Running a Well-Managed Fleet

Complacency. It is defined as self-satisfaction, especially when accompanied by unawareness of actual dangers or deficiencies. Is this you? Complacency is a real danger to fleet operations, especially well-run fleets.

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Market Trends•by Mike Antich•April 21, 2008

Subprime Crisis Metastasizes to Fleet Resale Market

An average end-of-service fleet sedan is three years old with 60,000-plus miles. The resale market for these used vehicles encompasses diverse demographics. However, in most cases, the dealers who buy fleet vehicles at auction will ultimately resell them to someone of limited financial means. In many cases, these buyers have less than stellar credit and may only qualify for a subprime auto loan. Since the onset of the subprime crisis, loan approvals for these customers are more difficult.

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Market Trends•by Mike Antich•April 14, 2008

Reduce Fuel Spend by Modifying Truck Specs

For the first time ever, the price of diesel in many regions of the country exceeds $4 a gallon. Since Jan. 1, diesel prices have risen more than 19 percent. The American Trucking Associations (ATA) predicts that truck fleets will spend more than $135 billion on fuel in 2008. This compares to $112 billion in 2007.

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Market Trends•by Mike Antich•April 7, 2008

Medium-Duty Truck Operating Costs Increase (Again)

The key reason for the increase was the cost of fuel, in particular, diesel fuel. This has also led to price increases for other oil-based products such as tires, which increased 4-7 percent in the past year. Other PM costs remained flat.

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Market Trends•by Mike Antich•April 1, 2008

Think Like a Used-Car Sales Manager

When resale prices soften, there is a pendulum-like resurgence in marketing used vehicles to employees. On the other hand, when the resale market is strong, fleets are complacent about employee sales (waiting for buyers come to them) and do not aggressively market the program to new buyers. The national average of vehicles sold to employees is 23 percent. However, by aggressively marketing employee sales, many fleets could sell as much as 50 percent of their vehicles in-house.

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Market Trends•by Mike Antich•March 17, 2008

Loss of Control is Reimbursement’s Fatal Flaw

Score one for our side! Recently, a Fortune 100 company gave (very) serious consideration to eliminating its company-provided vehicle fleet program and switching to driver reimbursement. Initially driving this initiative was senior management’s desire to cut cost by removing the vehicle assets from the books. The option to move to an operating lease was not viable since it violated the company’s accounting policies set by finance.

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Market Trends•by Mike Antich•March 10, 2008

Economic Stimulus Act of 2008 Brings Back Additional 50% First-Year Bonus Depreciation

On Feb. 20, 2008, President Bush signed into law HR 5140, the Economic Stimulus Act of 2008, which, among other things, includes an additional first-year depreciation deduction equal to 50 percent of the adjusted basis of a new vehicle. This temporary change to the federal tax code requires that all vehicles and other fixed assets be purchased and put into use by Dec. 31, 2008.

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Market Trends•by Mike Antich•February 25, 2008

Managing the Uncontrollable

The country’s best managed fleets are exemplified by the Top 300 commercial fleets. Operating a fleet of 1,000 vehicles or more is an expensive proposition and, with most companies, it represents the second-highest corporate expenditure after payroll.

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Market Trends•by Mike Antich•February 19, 2008

Tire & PM Costs Increase Car Maintenance

Increased cost of replacement tires and PM caused car maintenance expenses in 2007 to increase slightly higher than the prior year. Tire costs were up 4-7 percent, while PM expenses increased 10 percent. Other costs remained flat.

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Market Trends•by Mike Antich•February 11, 2008

Economic Slowdown Causes Fleet Resale Values to Decline

Most fleet vehicles are purchased by subprime buyers; however, these buyers are now finding it increasingly difficult to qualify for used-vehicle loans. The slowdown in the construction market is dampening demand for used pickups, and full-size vans.

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